Langgam Pos - Elon Musk has been ordered to pay $600,000 (approximately Rp 9.4 billion) to a former Twitter employee following a court ruling in Ireland. The case centered on an unfair dismissal after Musk issued an ultimatum in November 2022, demanding that Twitter staff work longer hours and harder, or face termination.
The ultimatum, sent via an email titled "A Fork in the Road," gave employees 24 hours to commit to the new work conditions. Those who did not agree by clicking "Yes" in the email were terminated and offered three months of severance pay.
Gary Rooney, a former senior executive at Twitter who chose not to respond to the email, won a lawsuit against the company. The Irish Workplace Relations Commission (WRC) ruled that Rooney’s dismissal was unjust, with the adjudicating officer, Michael MacNamee, stating that the 24-hour ultimatum was unreasonable and that refusal to comply could not be considered a resignation.
Former Twitter Executive Sues Musk for $20 Million in Stock Compensation
In a related case, former Twitter executive Omid Kordestani has filed a lawsuit against Musk and X Corp., claiming the company failed to pay him $20 million in stock compensation. Kordestani, who served as Twitter’s executive chairman from 2015 to 2020 and remained on the board until Musk’s acquisition, alleges that the promised stock compensation was withheld after Musk took over.
Kordestani's lawsuit, filed in California, asserts that Twitter promised him performance-based and restricted stock units, which should have been paid out when Musk acquired the company and replaced the board of directors. The suit claims that X Corp. is unfairly profiting from Kordestani's seven years of service without fulfilling its contractual obligations.
Musk Escapes Class Action Lawsuit Over Severance Pay
Despite the legal challenges, Musk recently avoided a significant setback when a U.S. District Judge in California dismissed a class action lawsuit filed by former Twitter employee Courtney McMillian. The suit alleged that Twitter owed severance pay under the federal Employee Retirement Income Security Act (ERISA) after more than 6,000 employees were laid off following Musk’s acquisition.
Judge Trina Thompson ruled that Twitter's severance plan did not qualify under ERISA, as employees were notified of a separate payment scheme before their termination. Consequently, the class action seeking $500 million (around Rp 8 trillion) in unpaid severance was dismissed.
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