Elon Musk's X Demands Refunds From Former Australian Employees Over Payment Error

The overpayments resulted from X's error in converting currency from US dollars to Australian dollars during the payment process. Several of the affected employees were terminated over 18 months ago

The social media platform has acknowledged the error and is seeking reimbursement

Source : PTI

Elon Musk's social media platform, X (formerly Twitter), is reportedly considering legal measures against former Australian employees to recover severance payments that were allegedly overpaid due to a currency conversion error. The social media platform has acknowledged the error and is seeking reimbursements amounting to as much as $70,000 in certain cases, as reported by The Sydney Morning Herald.

The overpayments resulted from X's error in converting currency from US dollars to Australian dollars during the payment process. Several of the affected employees were terminated over 18 months ago. According to the report, legal notices have been sent to at least six former employees.

According to the publication’s report, an email from X's Asia Pacific human resources department stated, “It has come to our attention that you received a significant overpayment in error in January 2023. We would be grateful if you could arrange the repayment to us [using the account details below] at your earliest convenience.”

The overpayments involve "deferred cash compensation" in the form of employee shares that were granted when the staff joined Twitter. These shares were valued at $54.20 each, which was the acquisition price when Musk purchased Twitter in 2022. The quantity of shares awarded to an employee was based on their length of service with the company.

Due to the currency conversion error, overpayments ranged from $1,500 to $70,000. The publication reported that X disbursed the share entitlements using a conversion rate 2.5 times higher than the actual value of the shares at the time of settlement.

According to the report, additional communications from X representatives cautioned former employees that not meeting the repayment request could lead to legal consequences. The letter mentioned, "Twitter Australia Holdings Pty Ltd reserves the right to commence proceedings for the recovery of the overpayment, together with interest."