Microsoft steps back from payback demand on ex-employees

Software giant Microsoft Corp has dropped its attempt to demand some severance money from 25 recently fired workers it had mistakenly overpaid. Amidst much of criticism, Microsoft is going back on its decision to require laid off workers to pay back the money that the software maker said was in excess of its planned severance.

Criticism across the board was witnessed, after Microsoft has supposedly written to some of the 1,400 employees it laid off last month, indicating that as a consequence of an administrative error it had paid them too much severance and wanted the money to be returned back.  Microsoft had confirmed over the weekend that it had overpaid severance to some workers and underpaid others. Twenty-five workers were overpaid and about Twenty underpaid, Microsoft said. Immediately, it had tried to get the overpaid workers to return the extra money.

Now Microsoft thinks better to backtrack from this attempt. In an interview to a private technology website, Microsoft’s human resources chief Lisa Brummel is quoted to be saying, “I thought it didn’t make sense for us to continue on the path we were on,”.

Reports also suggest that those overpaid had received, on average, about $4,000 or $5,000 in extra pay.  It is also understood that Microsoft is immediately reimbursing the underpaid employees.

On Monday Microsoft has issued a statement regarding the company’s decision of not pursuing the ex-employees to payback the money:
“Last week, 25 former Microsoft employees were informed that they were overpaid as a part of their severance payments from the company. This was a mistake on our part. We should have handled this situation in a more thoughtful manner. We are reaching out to those impacted to relay that we will not seek any payment from those individuals.”