X marks the spot where Twitter's severance math doesn't add up
- Reference: 1718299930
- News link: https://www.theregister.co.uk/2024/06/13/x_overpaid_laidoff_australian_employees/
- Source link:
The Sydney Morning Herald [1]reported X's demands yesterday, saying that letters had been sent to "at least" six former Twitter staff members, with one reportedly being overpaid by as much as AU$70,000 ($46.6k, £36.5k). All of the details were shared with the paper anonymously.
The Herald, which said it was able to view a copy of the letters sent to the former employees, reported that the payments were related to deferred cash compensation – a scheme that sets aside a payout for when a vested employee either leaves or retires. In this case, Twitter employees were awarded shares in the company when they joined to be paid out at their departure. Some of the employees being asked to repay the money were reportedly fired more than 18 months ago.
[2]
It appears that an incorrect currency conversion between US dollars and Australian dollars was performed, paying out in one case more than 2.5 times the actual value of the shares. [3]Famously broke X could use every penny it can get right now, so sorry, former employees who've had that cash in some cases for more than a year.
[4]
[5]
"We would be grateful if you could arrange the repayment to us … at your earliest convenience," the Herald reported the letters as politely requesting. Failure to do so would allegedly lead to legal action for the recovery of the money with interest.
None of the employees have complied with X's request, according to the report. The Register asked X to verify the claims, but didn't hear back. We haven't been able to otherwise independently verify the news.
[6]
Given X's [7]relationship [8]with [9]money and [10]its [11]bills since Musk took over, the move might not be outside the realm of possibility.
X and Australia: A rocky history
Australia and Elon Musk's Twitter/X have butted heads a number of times since the billionaire acquired the company in late 2022.
Musk's big day is here
Today's the day we'll find out whether Tesla shareholders want to award Musk his stricken multibillion (US) dollar pay package. So far, the man himself claims, the vote is going in his favor.
"Both Tesla shareholder resolutions are currently passing by wide margins," Musk said in a [12]post on X yesterday. "Thanks for your support!!"
Musk's pay package – initially valued at $56 billion before the fall in Tesla's share price – was [13]voided by a Delaware judge in February on the grounds it was unfair to shareholders. Early indications from several institutional shareholders was that commercial investors were [14]unhappy with the idea of paying Musk so much while [15]Tesla is struggling . With hopes seeming to be pinned on retail investors, who [16]hold a little less than 40 percent of Tesla shares, Musk appears on track to be rewarded.
We'll likely know the outcome later today when Tesla's annual shareholders meeting [17]convenes .
Australian officials raised [18]concerns last year that Twitter's multiple rounds of layoffs could leave it in a tenuous position in which it's unable to meet the requirements of Australia's Online Safety Act. Not long after raising those concerns, the Australian eSafety Commissioner filed an official motion asking Twitter to explain the rise in hate speech on its platform.
[19]Australia threatens X with fine, warns Google, for failure to comply with child abuse handling report regs
[20]Elon Musk made 1 in 3 Trust and Safety staff ex-X employees, it emerges
[21]Chucking Trump etc off Twitter after Jan 6 provides key data for misinfo experiment
[22]Adios, accountability: X to hide 'likes' for everyone this week
X's responses to the government have only prompted more back-and-forth between the pair, eventually leading late last year to Australia's Digital Industry Group (DIGI) revoking X's signature from its anti-disinformation code. DIGI [23]said in November that changes to X left users unable to report misinformation and breached the misinformation code, and that X refused to cooperate to address the complaint.
Australian officials also sued X earlier this year after the platform refused to take down video of a knife attack on a clergyman in Australia. Musk called the request an assault on free speech, and last week Australia's eSafety commissioner [24]dropped the charges .
Whether the government will get involved in this latest X-related kerfuffle isn't clear, but lawyers who spoke to the Herald said that Australian laws don't have any provisions in place to prevent X from suing its former employees.
X didn't respond to questions for this story. ®
Get our [25]Tech Resources
[1] https://www.smh.com.au/business/companies/elon-musk-chases-overpayments-from-australia-s-sacked-twitter-staff-20240611-p5jku0.html
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZmtsA2pO3ISuSh4E32xCrQAAABM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.theregister.com/2023/05/31/twitter_value_decline/
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZmtsA2pO3ISuSh4E32xCrQAAABM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZmtsA2pO3ISuSh4E32xCrQAAABM&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZmtsA2pO3ISuSh4E32xCrQAAABM&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://forums.theregister.com/forum/all/2023/07/17/twitter_ad_revenue_halved/
[8] https://www.theregister.com/2023/09/05/twitter_adl_lawsuit/
[9] https://www.theregister.com/2023/07/13/twitter_lawsuit/
[10] https://www.theregister.com/2023/01/23/twitter_consultant_lawsuit/
[11] https://www.theregister.com/2023/04/11/former_execs_sue_twitter/
[12] https://twitter.com/elonmusk/status/1801084780035154058
[13] https://www.theregister.com/2024/04/17/tesla_reinstate_musk_pay/
[14] https://www.theregister.com/2024/06/10/norway_wealth_fund_musk_tesla/
[15] https://www.theregister.com/2024/05/07/tesla_layoffs_continue/
[16] https://www.tipranks.com/stocks/tsla/ownership
[17] https://www.tesla.com/2024shareholdermeeting
[18] https://www.theregister.com/2023/05/17/twitter_australia_regulation/
[19] https://www.theregister.com/2023/10/16/esafetty_australia_google_x_noncompliance/
[20] https://www.theregister.com/2024/01/11/elon_musk_twitter_safety_cull/
[21] https://www.theregister.com/2024/06/06/jan_6_depatforming_nature_study/
[22] https://www.theregister.com/2024/06/12/x_hides_likes/
[23] https://www.theregister.com/2023/11/28/x_australia_trouble/
[24] https://www.theregister.com/2024/06/05/australlia_ends_x_takedown_case/
[25] https://whitepapers.theregister.com/
""We would be grateful if you could arrange the repayment to us … at your earliest convenience,””
Certainly, I’m a bit busy at the moment so my earliest convenience is looking like January 27th 2047 - expect a cheque (check?) then!
Or anyone in receipt of said letter, responds with a request for further information, you dispute the money owned and demand a full explanation of the basis for requesting it and a breakdown of the calculations. Lawyers are famous for prevarication, so don’t expect a reply for months. And one it does apply and you conclude that it has merit, you then respond with an offer to repay it at, say $20 a month - as that’s all you can realistically afford.
If the Australian legal system works the same as the UK’s - I suspect that it does - then Courts really, really look favourably on a party trying their best to behave reasonably and settle amicably. So in such a case should ‘X’ sue and win, then the likelihood is that the Court would refuse to order costs against the losing side, and make an order that they were to pay off the ‘debt’ at a rate of $15 per month!
Oh - mandatory disclaimer - IANAL! But I do know how these things tend to play out!
Details
Twix* should certainly state how the amount of the funds to be returned is calculated, and how they got the conversion wrong in the first place. Of course some people may have just trusted that their initial payment was correct and, well, spent it, on maybe a new car, moving house, college fees for the kids (sorry I have no idea how education works 'down under'). So the court case(s) may not actually be that simple.
There is a sort of precedent in the UK. A pensioner was concerned that the then DHSS* was paying her more than she was entitled to and wrote several letters explaining her concerns. The DHSS assured her it was all fine in writing , so eventually she kept the money and spent it. A year or so later, the DHSS discovered their mistake and requested the money back. She refused having (a) a letter from them saying it was her money, and (b) spent it. So the DHSS sued her, and, because she had kept the letters, she won.
Whether the former employees can legally keep the money may depend a lot on what is recorded in writing, and what was agreed between the staff and Twitter at the time.
*Come on! You know I don't mean the sugary comestible.
**The UK's then Department of Health and Social Security, also known facetiously as the Department of Stealth and Total Secrecy, as getting any information out of it was usually impossible.
Re: Details
I thought it was "stealth and total obscurity"
"Thanks for your support!!"
He's about to be given $46 billion by idiots and yet he's still begging for pennies. Let it be a lesson for him to pay for more competent staff in future.
Re: "Thanks for your support!!"
If only there were a parable about a man forgiven an enormous debt trying to shake down someone who owed him a much smaller amount that might apply here.
Re: "Thanks for your support!!"
I can only give one upvote*, so I'm adding this --->
* Would the source in question require 4 upvotes, or 7?
Re: "Thanks for your support!!"
I suspect the Koran (or the Old Testament) gives more appropriate guidance here than the New Testament.
PE.
Perhaps Arkell v. Pressdram would be a suitable response?
Full and final settlement
Herewith enclosed your full and final settlement…
..thanks very much
..time passes
..oh, it’s too full and not quite the final amount
..twats
I hope they all keep it
With how Musk is screwing over others out of their promised severance in the US, screwing over landlords by refusing to pay rent, and so forth it is good to see Musk on the other end of the screwing for once.
If he tries to sue them as promised, the Australian government should say "we're putting all these cases on hold in our courts until Twitter is in full compliance with our laws" which would guarantee they're free keep that money forever as there's no way Musk is ever going to follow the law.