Elon Musk, the new owner of X (formerly Twitter), has threatened legal action against former staff members in Australia. Musk claims that the company accidentally overpaid these employees and is now demanding to claw back the excess payments through the court system. This development comes after X had already laid off a significant portion of its Australian workforce in January 2023.
According to reports from the Sydney Morning Herald, the social media company alleges a currency “conversion error” as the reason behind the overpayment. As a result, some former employees are being asked to repay substantial amounts, reaching up to $46,500 in US dollars.
Critics argue that this situation exemplifies an employer blaming laid-off workers for its own accounting mistake, further exacerbating the hardship faced by these former staff members. The demand for repayment while they are in a vulnerable position has sparked controversy and raised questions about the company’s treatment of its employees.
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The legal battle between Elon Musk and the fired Australian staff members adds another chapter to the tumultuous history of X, highlighting the challenges faced by both the company and its employees in the ever-evolving landscape of social media.
AUD Lang Syne
According to the report, at least six former X employees received letters in the mail, alleging that they had “received a significant overpayment in error in January 2023.“
“We would be grateful if you could arrange the repayment to us [using the account details below] at your earliest convenience,” the letter reads.
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In a recent development, the former staff of the company received their payment in the form of Twitter shares. These shares were valued based on the price at which Elon Musk acquired the company in 2022. The exact number of shares given to each employee varied depending on their duration of employment.
However, it has been reported by the Herald that some employees were overpaid, with amounts ranging from $1,000 to $46,500 US. The company has taken a stern stance and has warned the former staff members that legal action will be taken if the excess money is not returned.
Atwitter
According to the Herald, none of the former employees yet have complied with the unusual request.
The social media platform has also been hit by a class-action suit in California, filed by former employees who claim they were never paid severance.
The latest accounting error shouldn’t come as a surprise, considering the sheer chaos the company has been in over the last two years. Following his disastrous acquisition of Twitter, Musk has slammed the company with several rounds of mass layoffs.
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The mercurial CEO’s abhorrent behavior has since scared away many advertisers, and the platform has quickly descended into a cesspool of misinformation, conspiracy theories, and extreme right-wing pundits.
It’s still unclear whether X has any recourse in asking for its money back. Employment law specialist Hayden Stephens told the Herald that the former employees should ask the company for supporting evidence before handing over any money.
Under Australian labor law, Stephens explained that “there is usually an obligation to repay that money” in the case of a genuine mistake.
