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“ Twitter has stopped paying rent on offices and is considering not paying severance packages to former employees, among other measures.” Can anyone speak to t
by nickthegreek 4y ago
“ Twitter has stopped paying rent on offices and is considering not paying severance packages to former employees, among other measures.”
Can anyone speak to the legality of not paying those severance packages?
- 082349872349872 4y agoMy question is: do the people who obviously could speak to it (the legal team) have any client control at the moment?
- someNameIG 4y agoLooking at the article I don't think they are legal, they seem to be betting not all of the ex employees will take it to court. So they are probably expecting that less payout + legal costs < than paying all the severances.' Or it's just a delaying tactic as Twitter just doesn't have the money to pay it now, so later is better, even if it costs more.
- fooey 4y agoPaying out 90 days severance for the majority of your workforce is a big stack of cash that has to come from somewhere It's not like Twitter has any cash reserves after it was just saddled with a few billion dollars of debt, and I doubt there are many banks rushing to give Twitter even short term loans
- kccoder 4y agoSomething tells me one of the richest men on the planet has access to sufficient funds to meet his obligations. If he doesn't, then who does? Yes, it might cost him more than he'd like, but in a civilized society, people should do what they say, and honor contracts they pen or inherit, otherwise they're just cheats and con-men.
- TheAlchemist 4y agoHe's not the richest men on the planet anymore. Besides, most of his fortune will evaporate soon - he probably knows it very well, given his stock sales of the past months. It's a house of cards, where leverage, free money, meme investing but also probably fraud in many ways, pumped Tesla share prices to Tulip Mania levels. You are absolutely right about honoring contracts - what does this whole Twitter buying saga tells us about his willingness to honor contracts when they are against his interests ?
- crazygringo 4y agoSince it covers thousands of ex-employees, wouldn't it probably turn into a class action suit? In which case it hardly seems they'd get away with less payout in the end. I can't help but wonder if the law in that case would allow for any kind of punitive damages as well.
- anigbrowl 4y agoSeems like a good way to attract the interest of regulators, since deliberate non-payment of liabilities is edging across the line into fraud.
- Dopameaner 4y agoperhaps, pay cheaper in the legal battle, expect the legal case to drag out, and expect by then twitter to be bankrupt or make profit.
- ajm017 4y agoSeverance packages are pretty much voluntary in the US.
- jacquesm 4y agoNot after you've agreed to pay them out in writing.
- anonymousab 4y agoThey're still effectively voluntary if you can draw it out in court long enough to bankrupt your former employees or convince them to take a minimal settlement.
- bell-cot 4y agoQuip: We're talking about a belligerent billionaire, who seems to have Emotional Maturity as his dump stat. "Legality" ain't on his priority list.