Elon Musk’s X Corp. has reportedly demanded money back from at least six former employees in Australia, claiming the company accidentally overpaid them. The Sydney Morning Herald reported that X is threatening to take legal action if the ex-employees do not return the overpaid sums, which are claimed to range from $1,500 to $70,000 per person.
The overpayments were allegedly due to errors in currency conversion from US to Australian dollars when paying severance entitlements in January 2023. The payments, related to deferred cash compensation in the form of employee shares, were reportedly made at a conversion rate 2.5 times the actual value. One Australian dollar currently equals about $0.67 USD.
X Corp. has asked the former employees to repay the money “at your earliest convenience” and has indicated that it reserves the right to pursue the matter in court with interest if necessary. None of the affected workers have complied with the repayment request so far.
Employment law specialist Hayden Stephens suggested that ex-workers may be obliged to return the money if it was a genuine mistake. However, they should first obtain a clear explanation and supporting documents from X.
In contrast, many former US-based employees of X have filed lawsuits and arbitration claims seeking severance pay they allege was wrongfully withheld. Additionally, four former Twitter executives, including ex-CEO Parag Agrawal, are suing X for over $128 million in unpaid severance. The lawsuits against X and Musk’s refusal to settle multiple claims have caused a deluge of litigation from various stakeholders, including vendors left unpaid after Musk’s acquisition of Twitter.
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