An Irish work environment watchdog ruled on Monday that it was unreasonable for Elon Musk to send emails to employees asking them to click “yes” within 24 hours to keep their jobs or voluntarily resign when his company acquires Twitter in 2022.
The Labor Court ruled that not only did the email not give the employees sufficient notice, but that the employees’ failure to click “yes” in no way constituted a legal act of resignation. Instead, the Court considered evidence alleging that the email appeared to be designed to induce employees to agree to new terms of employment without actually seeing them, or to induce employees to voluntarily offer themselves up for redundancy, at a time of mass layoffs across Twitter.
“Building a revolutionary Twitter 2.0 and succeeding in an increasingly competitive world today will require an extremely hard core attitude,” Musk said in an email to employees. “This means working long hours with high levels of focus. Only exceptional performance will pass.”
With the subject line “At a Crossroads,” the email urged staff, “If you’re sure you want to be part of the new Twitter, please click ‘Yes’ at the link below. Anyone who hasn’t clicked by tomorrow (Thursday) at 5pm ET will receive three months’ severance pay. Whatever you decide, we appreciate your efforts in making Twitter a success.”
In a 73-page ruling, Irish Workplace Relations Commission (WRC) adjudicator Michael McNamee ruled that Twitter’s sudden firing of Ireland-based senior executive Gary Rooney was unfair, as reported by Irish public broadcaster RTÉ. Rooney had argued that his contract stated that his resignation had to be submitted in writing, rather than by abstaining from filling out a form.
A spokesperson for the Department of Enterprise, Trade and Employment, which handles media enquiries for the WRC, told Ars that the decision will be published on the WRC’s website on August 26th, after both parties have had an “opportunity to fully consider it”.
Instead of giving Rooney a severance package worth just over $25,000, Twitter, now renamed X, must pay him more than $600,000 – a record amount from the WRC, according to numerous reports, and including “compensation for loss of future earnings” of around $220,000.
The WRC rejected Rooney’s claims over a performance bonus allegedly due in 2022 but broadly agreed with his claim of unfair dismissal.
Looney worked at Twitter for nine years prior to Musk’s acquisition and told the WRC that while he previously loved his job, the “fork in the road” email gave him no way of knowing “what package I was being offered” or “the impact of agreeing to stay at Twitter.” Looney hesitated to click “yes” because he wasn’t sure how his benefits and stock options would change, and he discussed his decision to leave with other Twitter employees on Slack, insisting he was leaving Twitter.
Twitter tried to argue that Rooney’s tweets about the Slack discussion and emails indicated his intention to resign, but the court did not find them related.
“Employees faced with this situation would not be blamed for refusing to be forced to unconditionally agree to any of the proposals,” McNamee said.
A total of 35 Twitter staff members did not click “yes.”
Many of the fired employees sued Twitter after Musk’s acquisition, but so far it seems like Company X is winning. The company has won at least one lawsuit, threatening to refund money to a fired Australian employee for “overpaying” them (Company X claims it misconverted Australian dollars to U.S. dollars). Looney’s lawsuit is one of the first big victories won by fired Twitter employees who challenged Musk’s unfair and stingy severance package.
Lauren Wegman, senior director of human resources at Company X, testified that of the 270 Irish employees who received the email, only 35 did not click agree. Following this week’s ruling, it appears Company X could face further complaints from dozens of employees who have followed the same route as Rooney.
X has not commented on the ruling but is apparently disappointed with the loss. RTÉ reports that the social media company tried to argue that Rooney’s employment contract “permits the company to reasonably vary the terms and conditions.” Wegman further testified that it was unreasonable for Rooney to think that his pay might change as a result of clicking “yes,” and told the WRC that “if he had complained” within the 24-hour deadline, his employment would not have been terminated, RTÉ reports.
Mr Rooney’s lawyer, Barry Kenny, told the Guardian that Mr Rooney and his legal team welcomed “the clear and unequivocal verdict that my client did not resign but was unfairly dismissed despite a long-standing excellent employment record and contribution to the company”.
“It is unacceptable for Mr. Musk, or any major company in this country, to treat their employees in this way,” Kenney said. “This record-breaking award reflects the seriousness and gravity of this case.”
Twitter can appeal the WRC’s decision, the Journal reported.