Microsoft retracts demand for payment of severance overage
Word broke out over the weekend that Microsoft had sent letters to ex-employees asking for repayment of severance package overages. Apparently damage control was able to beat the Grinch out of HR because the company apparently decided to do the right thing. Microsoft human resources chief Lisa Brummel says the company is reversing its course of action and contacting those who received the notice to advise them that repayment is not necessary. About 25 ex-employees were overpaid and 20 were underpaid due to the error. We’re also glad to hear the workers who were underpaid will be compensated for the amounts they were due. Lesson learned for Microsoft: There are some cases where accounting errors can’t, or shouldn’t be fixed and this is one of them. The former employees who spoke up can also give a nod to the media for spreading the news like wildfire and bringing it to Microsoft’s (and everyone else’s) attention.
Being “impacted,” “fired,” “let go,” or other “release” from job requirements is never pleasant. However, I am surprised that so many were arguing that people should get to keep money they knew they shouldn’t have obtained in the first place…
This is like getting $10.00 back when the person at the register owed you $1.00. Why is it some feel like “Oh well, my gain…”? You are being enriched, quite “unjustly.”
If your argument is that you were just fired, that is why you got the compensation package… Just because you “got” more than you were promised does not mean that your moral compass needs to be pointing in the wrong direction.
Don’t get me wrong… I am glad Microsoft did not require them to pay it back… However, how is it fair to those who “only” got what they were promised… See that slippery slope?
agreed and well said. and error is an error. the circumstances dont matter. Over paid is over paid no matterif your employed or terminated.
Yup
if this wasn’t publicized, microsoft never would have let them keep the extra money.
Lol its microsoft they can afford it.
it was only 25 people?
what a non-story.
Yeah, if anything, the spin on the story should be how nice MS was to let them keep it.
Get an overpayment from a bank or the U.S. Gov’t and see what happens. Hell, Dept of Defense won’t even ASK, they’ll take it right out of your account and tell you about it later.
Hmm… wonder how I know that?? I wonder…
yay ex-employees!!! Good job Microsoft!
Sure, you should give money back if it isn’t yours. But I imagine if your only income source has been eliminated and you still have bills to pay, it becomes a little harder to want do that. Especially if you have to give money back to an entity that just screwed you over.
It sure is easy to type in moral statements to BGR’s comment section though.
I knew it.
Comparing this situation to a clerk accidentally over refunding you is ridiculous.
That clerk didn’t just put you out on your a$$.
The fact that it was 25 people makes it seem very miserly on Microsoft’s part. I agree that in principle the ex-employees should give back the overpayments.
What I would have done as Microsoft in the face of all of this bad publicity is to determine the average overpayment and ensure all of the remaining 20 underpaid ex-employees get this as well. that way everyone is whole and let’s face it, it’s a drop in the bucket for M$, who is more famous for the amount of money spent on marketing than the actual products it sells.
If both parties agreeded to payment/seperation terms.
Then microsoft comes back and says, the money we agreed to was incorrect due to an accounting error. That is Microsoft’s fault.
If both parties agree. You better have your numbers right. No different if I go to an auction and bet on a painting and agree to the final price. Only to say, I have made an accounting error and can’t afford that painting but I can give you a little less. I better have my numbers in line if I want to place a bid.
Microsoft should have had their numbers in line before the process started. They failed and as a result must suffer the result. Probably an indication of the poor fiscal management there to begin with.
For those saying it’s an error they shouldn’t keep the money and comparing it to getting $10 back from a cashier when you should have received $1…what is WRONG with you? Seriously?
I have no problem agreeing that an over payment error should be corrected in *MOST* circumstances, but this is NOT a black and white issue, there are CIRCUMSTANCES where the right thing to do is let the error slide and this IS ONE OF THOSE CIRCUMSTANCES. These folks were laid off in a HORRIBLE economy, they need every penny they can get. Microsoft made the mistake of overpaying their severance and while SURE they weren’t due that money, didn’t earn that money etc, this is a BAD PR MOVE for Microsoft to ask them to pay that money back; it’s kicking these people while they are down.
Microsoft did the right thing reversing course here, it was their mistake and asking for it back was kicking these people while they were down…
I’d never want to meet those of you saying they should send it back in a time of crisis, you’re absolutely amazing AHOLES.
@ flea:
You should really consider changing your name to Captain Obvious.
You must be a card carrying member of Mensa.
All thanks to BGR!
“if this wasn’t publicized, microsoft never would have let them keep the extra money”
I heard a neuron fire, I heard a neuron fire!!!
They guys who are all uptight about how the money should have been given back, get your heads out of your ass.
There’s a bit of magic in everything, and some loss to even things out.
bgr had nothing to do with these people getting their money back. in fact, bgr dropped the ball on this whole story. yesterdays news today hopefully isn’t the way bgr is headed…