Significant Overpayment: Elon Musk’s X Wants Sacked Staff to Return Money
15.06.2024: Billionaire Elon Musk’s social media platform, X (formerly known as Twitter), has requested its former employees in Australia to return money that was allegedly overpaid to them. This request follows a reported error in currency conversion from US dollars to Australian dollars.
The Overpayment Issue
The Sydney Morning Herald reported that X acknowledged its mistake in currency conversion, leading to overpayments ranging from $1,500 to as much as $70,000 in some cases. These overpayments occurred when the employees were paid their entitlements after being laid off.
Legal Notices
At least six former employees have received legal notices regarding the overpayment. An email from X’s Asia Pacific human resources department stated, “It has come to our attention that you received a significant overpayment in error in January 2023. We would be grateful if you could arrange the repayment to us at your earliest convenience.”
Deferred Cash Compensation
The company explained that the overpayment was linked to “deferred cash compensation” in the form of employee shares issued when they joined Twitter.
Legal and Workplace Violations
Elon Musk’s X has faced multiple lawsuits alleging various labor and workplace violations. These include accusations of failing to pay severance to thousands of workers who were laid off following Musk’s $44 billion acquisition of Twitter in 2022.
Previous Severance Issues
Last year, many former Twitter employees claimed they were denied severance pay after being laid off. This new development adds to the ongoing controversy surrounding the company’s treatment of its former staff.
The request from Elon Musk’s X for the return of overpaid funds highlights the financial and legal complexities involved in large-scale layoffs and corporate acquisitions. The affected employees are now navigating legal proceedings to resolve the issue.