Microsoft overpaid severance - Company seeks return of money from laid-off workers

Discussion in 'Economy' started by xsited1, Feb 23, 2009.

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    Microsoft Corp. acknowledged over the weekend that it overpaid severance to some of the 1,400 employees it laid off last month and has asked the former employees to pay back the money.

    The company also said it had underpaid some laid-off employees.

    "An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft," said one letter to an ex-employee, which was posted on the TechCrunch blog Saturday.

    "We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."

    Microsoft spokesman Lou Gellos confirmed the authenticity of the letter Saturday evening but would not comment further, stating that it was a "private matter between the company and the affected people."

    He would not say how many people were affected but said, "There was certainly more than one."

    Gellos also said that an unspecified number of other laid-off employees received smaller severance packages than they were owed.

    He said Microsoft was "taking care of underpayments."

    Microsoft paid the 1,400 employees it laid off Jan. 22 a minimum of 60 days of salary, plus what it described as a "generous" severance package that varied depending how long employees had worked at the company.

    Microsoft overpaid severance
     

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