Microsoft’s payroll blooper

msletter

The Microsoft haters were predictably out in force on TechCrunch, following apparent errors in calculating severance pay for at least some former employees culled in its recent cutback of 1,400 staff. Microsoft has acknowledged that errors have been made but has not quantified the extent.

Much of the discussion  – if you can call it that – centres on whether former employees have a duty to repay with most saying former employees should do nothing. The precise position is unclear and Google searches don’t help. One search result suggests the position is unequivocal. They must repay. Another says ‘it depends’ though veering towards repayment.

The letters that have been sent (see above) represent what looks like the least unfriendly of formal requests, avoiding ‘demand’ style language. Even so, this is an unusual area that will have legal eagles scratching their heads. Pay is the most sensitive topic for any employee. Employees put their faith in employers for making the correct calculations. Mistakes are made and in an ongoing situation can usually be easily fixed. This situation is unusual because employees are no longer with the company. My guess is that the discretionary element included in the final gross pay calculations has been incorrectly transferred from the originating document (probably a spreadsheet) and this has only been picked up on post calculation review.

Much is made of the PR gaff and yes, Microsoft will end up with egg on its corporate face. At a time when layoffs are common in the tech industry, HR/payroll departments will be on high alert to make sure these types of error are kept to a minimum.

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Tagged as: Microsoft, Severance package, TechCrunch