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Microsoft lets laid off workers keep overpaid severances

hanselthecaretaker

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Laid Off Microsoft Workers Keep Extra Severance
By Jane McEntegart, published on February 25, 2009 at 8:00 AM
Source: Tom's Guide US

Microsoft has backtracked on its earlier plan to take back extra cash paid in error to laid off staff.

Early this week, reports emerged that Microsoft had screwed up somewhere along the way when it came to the severance pay of recently laid off employees. Some people got more that they should have while others got less than they were supposed to. CNet reported that Microsoft confirmed it over the weekend and said those who were overpaid were sent a letter saying they would be required to pay back the money.

Naturally people thought this was pretty harsh. These people had lost their jobs and asking for the money back was pretty cold. HR chief Lisa Brummel told CNet on Monday that Microsoft had changed its mind and would no longer expect the overpaid former employees to return the money.

"I thought it didn't make sense for us to continue on the path we were on,” she explained and divulged that those who were overpaid received about $4,000 or $5,000 extra.

Microsoft then issued an official statement on the matter:

“Last week, 25 former Microsoft employees were informed that they were overpaid as a part of their severance payments from the company. This was a mistake on our part. We should have handled this situation in a more thoughtful manner. We are reaching out to those impacted to relay that we will not seek any payment from those individuals.”

What do you guys think of this story? On the one hand, it’s nice that Microsoft has decided not to ask for the money back, despite the fact that it was obviously an accounting or clerical error. On the other hand, it doesn’t seem fair to those who were underpaid (who we assume will only be paid what they were supposed to get in the first place, once everything is sorted out) and an extra $5,000 could do a lot for a family that’s struggling. Leave your thoughts in the comment section below.


Laid Off Microsoft Workers Keep Extra Severance - Tom's Guide

Probably figured it wouldn't have been such a good public relations move when they're trying to launch a new OS lol.
 
It's not really PR, it's because legally they can't do shit. Microsoft isn't going to send lawyers to small claims court around the state to win back $2000.

r
 
It's not really PR, it's because legally they can't do shit. Microsoft isn't going to send lawyers to small claims court around the state to win back $2000.

r

It's surprising that they even tried to get it back in the first place.
 
Why don't they just take the $100G's lost out of Bill Gates' personal account. He wouldn't even know it was gone. That's like me losing $10. I would never know.


Unbelieveable.
 
nothing wrong with taking it back, if they could. it's not harsh or unfair. of course, if anyone can afford to make those payments, it's MSFT...they've got a shitload of cash sitting around.
 
nothing wrong with taking it back, if they could. it's not harsh or unfair. of course, if anyone can afford to make those payments, it's MSFT...they've got a shitload of cash sitting around.

That is true. I'm working with them on some foreign training stuff - and people fail to realize microsoft sales maybe down in US - but 99.9% of the rest of the planet uses microsoft products.

And guess where they're hiring and investing in for the future? Hint: It isn't the US. Microsoft has opened up 5 new sales and developments centers in Asia.

This is where Apple fails horribly. They've priced themselves out of most of the world who can't afford $2000 macbooks.

r
 
yeh, good luck in getting that money back. it's long been spent on volvo/saab payments and starbucks.
 
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