Former Twitter employees claim that billionaire failed to comply with the terms of the resignation plan established before the purchase of the platform
Elon Musk and Twitter are being sued by former employees of the social network who allege the company has failed to pay around $500m (£385m) in damages owed. The lawsuit was filed this Wednesday (12.Jul.2023) in a US court on behalf of workers fired after the acquisition of the company by Musk at the end of 2022. BBC.
The lawsuit filed in a California District Court seeks to compel Twitter to “comply with all terms of the termination plan, paying all terminated employees what they are owed”, according to the lawyers. The complaint says that Musk knew about the layoff plan before he laid off thousands of employees, but that he refused to “despense”.
Under Twitter’s layoff plan, established prior to the acquisition of the social network, employees were to receive a minimum of 2 months salary and a cash contribution towards health insurance, among other benefits.
According to the lawsuit, the layoffs that followed Musk’s purchase of Twitter affected about 6,000 people.
Senior employees would receive 6 months salary as severance, plus one week for each full year of experience. But they claim they got “not maximum” 3 months of pay after they were laid off. The damages amount to about $500 million, the lawsuit says.
Twitter, which no longer has a public relations department, had no comment on the case.