Preston Gralla's picture
Preston Gralla

Seeing Through Windows

Microsoft to laid-off workers: You owe us severance

How's this for adding insult to injury: Microsoft has asked some of its 1,400 recently laid-off workers to pay back some of their severance pay because the company accidentally overpaid them.

TechCrunch has copies of letters sent to laid-off employees, asking that they pay back some of the severance pay given to them. One letter reads:

"An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft. We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."

TechCrunch says the letter was sent to multiple employees, not just one, but did not have a figure for how many received the letter. A Microsoft spokesperson confirmed to the Seattle Post Intelligencer that the letter reprinted by TechCrunch was authentic, but would add no details, saying, it was a "private matter between the company and the affected people." He also confirmed that more than one person received the letter.

Making matters even worse is that some employees were given less severance than they were actually due, according to the Microsoft spokesperson. The company says that it is now "taking care of underpayments."

Again, though, no numbers were given.

One wonders exactly how the severance payments were calculated --- using Excel or Microsofty Dynamics, perhaps?

Update: Microsoft has told the workers that they don't have to pay back the extra severance. For details, see my blog, Microsoft to laid-off workers: Ooops...keep the severance.

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