Elon Musk's microblogging platform, X (formerly known as Twitter), has been ordered to pay compensation to a former employee in an unfair dismissal case. According to Fortune, the company must pay over $602,640 (approximately Rs 5 crore) to Gary Rooney, who was dismissed in December 2022 following Musk's acquisition of the company. Rooney, who held a senior procurement role, had been employed by X since September 2013.
On Tuesday, Ireland's Workplace Relations Commission (WRC) ruled that Rooney had been unfairly dismissed and ordered X to compensate him. This sum represents the largest award ever given by the WRC, highlighting the severity of the case.
The controversy began in November 2022, shortly after Musk took over the company. Musk sent an email to all employees demanding they commit to working "long hours at high intensity" or accept a severance package. Employees, including Rooney, were given one day to click "yes" to agree to the new working conditions.
During the WRC hearing, X argued that Rooney had resigned voluntarily by not clicking "yes" to accept the new terms outlined by Musk. However, the WRC rejected this argument, stating that failing to agree to the new conditions did not equate to a resignation. Barry Kenny, Rooney's solicitor, emphasized that it is unacceptable for Musk or any large company to treat employees in such a manner within this jurisdiction. The record award reflects the seriousness of the case.
This ruling is one of several legal challenges that have arisen since Musk purchased the microblogging site. Multiple lawsuits have claimed that X employees did not receive the severance benefits they were promised.
Elon Musk acquired Twitter in October 2022 in a $44 billion deal. Following his takeover, he laid off nearly half of the company's employees and issued a strict ultimatum to those who remained, demanding they commit to a more intense working environment.
The ruling by the WRC underscores the ongoing legal and ethical challenges faced by Musk and X as they navigate the complex landscape of employment law and worker rights.
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