Monday, February 23rd 2009
Microsoft Severance Pay Blunder Costs Mostly Unemployed Ex-Employees
In what could come as a rude shock to certain Microsoft ex-employees, the individuals the company fired as part of its recent workforce reduction schemes, as reactions to a deteriorating world economy, the company wants portions of the money it gave as severance packages back, which it finds as an overpayment caused due to an administrative error. As part of Microsoft's penny-saving schemes, the company sought to axe as many as 5,000 jobs, 1,400 of which were lost in this month alone.
Microsoft's human-resources department admitted to the error when working out and issuing severance packages to some ex-employees. If the ex-employees weren't unfortunate enough already for having lost their jobs, Microsoft now demands the portion of its severance package that is overpaid, back from its recipients. In a letter sent to all liable individuals, the company expresses sincere apologies as it asks for the overpayment to be returned. The letter is posted on Scribd and can be read here. Microsoft gives its ex-employees, most of whom are unemployed at the moment, 14 days to return the money.
UPDATE (02/24): In a fresh report by MSNBC, Microsoft admits to the fact that administrative glitches caused it to pay more severance than intended to some laid-off employees, and the company intended to ask for the overpaid amount back through private communication. The plan took a sour turn with a copy of the letter surfaced on the internet, turning out to be embarrassing for the company. Lisa Brummel, senior VP for human resources, in an interview to MSNBC shared some figures: only 25 out of the 1,400 recently laid-off employees were sent the letter, the degree of discrepancies measured around US $4,000~5,000 per odd payment. The executive reportedly called most of the 25 laid-off employees Monday to personally tell them Microsoft would not seek repayment after all.
Microsoft's human-resources department admitted to the error when working out and issuing severance packages to some ex-employees. If the ex-employees weren't unfortunate enough already for having lost their jobs, Microsoft now demands the portion of its severance package that is overpaid, back from its recipients. In a letter sent to all liable individuals, the company expresses sincere apologies as it asks for the overpayment to be returned. The letter is posted on Scribd and can be read here. Microsoft gives its ex-employees, most of whom are unemployed at the moment, 14 days to return the money.
UPDATE (02/24): In a fresh report by MSNBC, Microsoft admits to the fact that administrative glitches caused it to pay more severance than intended to some laid-off employees, and the company intended to ask for the overpaid amount back through private communication. The plan took a sour turn with a copy of the letter surfaced on the internet, turning out to be embarrassing for the company. Lisa Brummel, senior VP for human resources, in an interview to MSNBC shared some figures: only 25 out of the 1,400 recently laid-off employees were sent the letter, the degree of discrepancies measured around US $4,000~5,000 per odd payment. The executive reportedly called most of the 25 laid-off employees Monday to personally tell them Microsoft would not seek repayment after all.