Tech Daily

News | Analysis | Comment | Features | Reviews

Microsoft makes severance pay blunder

Further slap in the face for laid-off workers

Sylvie Barak, vnunet.com 23 Feb 2009

An embarrassing miscalculation by Microsoft has resulted in the firm having to ask recently laid-off employees to pay back parts of their severance pay.

Microsoft, one of the world's richest companies, has apparently overpaid a certain number of employees recently made redundant and, according to a letter posted on TechCrunch, has asked for its money back.

"This letter is to inform you that an inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft. We ask that you repay the overpayment, and sincerely apologise for any inconvenience to you," reads the document.

The software giant recently slashed its workforce by 5,000 employees, 1,400 of whom left their jobs on 22 January. To make matters worse, Microsoft has also apparently underpaid others.

Miscalculating severance pay is not only awkward for the firm, but a painful and discomforting experience for the employees concerned, reflecting badly on the company. With layoffs a daily feature in the current economic climate, blunders like these only add attention and rub salt in an already painful wound.

It is not clear how many people the Microsoft payment slip-up has affected, but it is thought to be a significant number.

See also:

redmondNew updates for Windows 7 beta and reports of impending Vista SP2 Release Candidate emerge  21 Feb 2009
DatacentreNew Citrix Essentials provides management for enterprise Hyper-V deployments  23 Feb 2009
Madeline Bennett and Mark DeakinThis video offers practical advice on how to overcome the security risks posed by unified comms  23 Feb 2009

All IT Management
Tags: Microsoft, Job-losses, Credit-crunch, Recession, Management

Like this story? Spread the news by clicking below:

Post this to Delicious del.icio.us    Post this to Digg Digg this    Post this to reddit reddit!

R E L A T E D   C O N T E N T