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Twitter in hot water for not giving advance notice to laid off employees

Twitter in hot water for not giving advance notice to laid off employees

Twitter in hot water for not giving advance notice to laid off employees
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By CNBCTV18.com Nov 19, 2022 11:59:20 AM IST (Published)

Musk may have fallen foul of California’s Worker Adjustment and Retraining Notification Act, or WARN Act over layoffs

Chaos at Twitter continued on Friday as many reports claimed mass resignations from the company after its new CEO Elon Musk’s mail asking employees to “commit to long, intense hours of work or leave”. At least 1,200 full-time employees resigned on November 17, the New York Times reported. Amid the turmoil since the takeover, Elon Musk now faces the risk of court action for violation of federal labour laws over layoffs. Musk’s reasoning behind the layoffs is to stem the bleeding finances of the company after his $44 billion takeover, which was completed on October 27.

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But, by not giving adequate warning and notice, Musk may have fallen foul of California’s Worker Adjustment and Retraining Notification Act, or WARN Act, along with federal labour laws. Under WARN, employers generally need to give 60 days of warning or notice before mass layoffs at a company.
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As a result, the social media platform is now being sued by a former contract worker in a class action lawsuit for failure to give proper notice, and for failure to deliver final pay and reimbursements. Shannon Liss-Riordan, the lawyer representing the employee, said that the company has temporarily halted firing employees, reported Bloomberg. The company will wait for a California court to hear an emergency motion, which will seek a stop on the company to get laid off workers to sign release forms, which often waive liability.
However, Twitter’s staffing problems do not have an end in sight with the total employee strength of the company being reduced by more than half from 7,500, before Elon Musk’s takeover. Musk has also fired several Twitter employees on the social media platform for daring to criticise him publicly. Several other employees have also been fired for criticising the free-speech advocate on internal Slack channels as well.
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