Elon Musk’s X Demands Laid-Off Employees Return Payments; Here’s Why
Elon Musk’s social media platform X, which you might still think of as Twitter, is causing a stir again. The company is asking several former employees in Australia to repay money they received by mistake due to a currency conversion error. This situation is raising significant legal and ethical questions, especially about how laid-off workers are being treated.
Back in January 2023, X overpaid severance packages to a number of its former employees in Australia. The overpayments happened because of a mix-up in currency conversion when changing U.S. dollar-based share entitlements into Australian dollars. The mistake bumped up the amounts to about 2.5 times the correct value, leading to overpayments from $1,500 to $70,000 per person.
Emails from X’s Asia Pacific human resources department, shared by The Sydney Morning Herald, admitted the mistake and asked the former employees to return the extra money. The company warned that if repayments aren’t made, it might have to start legal proceedings to get the money back, including interest.
At least six former employees have been legally notified by X, urging them to repay the overpaid amounts. So far, none of them have complied. These ex-employees are understandably skeptical and want a detailed explanation and proof of the error before considering repayment.
According to the Herald, representatives for X informed the former staff that if they didn’t comply with the demand, Twitter Australia Holdings Pty Ltd reserved the right to take legal action to recover the overpayment, “together with interest.”
Under Australian law, employees usually have to return overpayments made due to genuine mistakes. However, they can also request a detailed explanation and proof of the mistake from their employer.
Interestingly, this isn’t Elon Musk’s first encounter with issues around severance payments. Earlier this year, he issued an apology over the severance packages given to laid-off Tesla employees, where he holds the position of CEO.
Recently, Tesla shareholders decided to bring back Musk’s $44.9 billion compensation package, which a Delaware judge had previously annulled. Additionally, Musk has hinted at some uncertainties regarding his future with Tesla, noting he would need a 25% stake in the company to keep control.
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