Microsoft : We Won't Take Back Severance Monnies

Responding to the wave of condemnation, Microsoft has eventually changed its mind over the decision that necessitate some of its ex-employees to repay the amount that the software giant said was in excess of its intended severance, according to CNet News.

The news of excessive severance payments to a few laid-off workers from Microsoft hit the blogosphere last week, after the software maker sent letters to the ex-employees urging them to pay back the overpaid severance amount to the company; however, the company didn’t notify the total amount and the number of affected individuals.

Commenting upon backtracking of the decision, Microsoft’s chief for human resources Lisa Brummel told CNet News, “I thought it didn't make sense for us to continue on the path we were on”.

Revealing the count of impacted employees, Brummel notified that twenty five workers were overpaid, while 20 laid-off employees lower severance amount; in addition, the overpaid employees received around $4,000 to $5,000 on average as extra amount.

Speaking out on the ethics of repaying the amount, Brummel asserted that its “makes sense” for the firms to recover the excessive amount if an accounting error has occurred, but she cited the case as an extraordinary one.

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Our Comments

Good thing Microsoft backtracked on this one. It could have been a proper PR disaster given the relatively small amount of money involved (that's $100,000) and it would have cost Microsoft much more in terms of goodwill and credibility to let this one go. Well done on this one.

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