Microsoft lets laid-off staff keep excess severance
Published: 24 Feb 2009 10:19 GMT
Following a wave of criticism, Microsoft has backtracked on its decision to require laid-off workers to pay back money that the software maker said was in excess of planned severance pay.
Over the weekend, Microsoft confirmed it had overpaid severance to some workers and underpaid others. At the time, the company did not say how much money was involved, but sent the workers who were overpaid a letter stating that they would be required to pay back the excess money.
On Monday, Microsoft HR chief Lisa Brummel said the company was reversing course.
"I thought it didn't make sense for us to continue on the path we were on," she told ZDNet UK sister site CNET News.com. Twenty-five workers were overpaid and about 20 underpaid, Microsoft said.
Brummel said she has spoken to, or left messages with, most of those affected.
Brummel said those overpaid received, on average, about $4,000 (£2,800) or $5,000 in extra pay.
"I have called now 22 out of the 25 impacted employees... I haven't had time to get to the [other] three, but I will after we hang up," Brummel said.
Brummel said it generally makes sense for companies to recover money if they make an accounting error, but she acknowledged that the situation was an extraordinary one. Brummel said the company actually overpaid her at one point during her long tenure.
"It actually happened to me, and I wrote the company a cheque," she said. "It may have happened to others."
Later on Monday, Microsoft issued the following 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."
Microsoft also said that the company is immediately reimbursing the underpaid employees.
Credit: Microsoft backtracks on severance issue from CNET News
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