August 14, 2024 – The Irish labor regulatory body has ruled on Monday that the email sent by Elon Musk to Twitter employees after his acquisition of the company in 2022, demanding they “click to agree” to retain their jobs within 24 hours or be considered as having voluntarily resigned, was illegal.
According to the regulatory body, the email not only failed to provide sufficient time for employees to consider their options but also did not constitute a legal resignation if employees did not click “agree.” Instead, the court viewed the email as a tactic to coerce employees into agreeing to new employment conditions without reviewing the terms or to voluntarily leave during Twitter’s mass layoffs.
In his mass email to employees, Musk stated, “To build a groundbreaking Twitter 2.0 and succeed in the increasingly fierce competition, we need to work extremely hard. This means working long hours at high intensity, and only excellent performance will suffice.”
The email, titled “A Fork in the Road,” urged employees, “If you are certain that you want to be a part of the new Twitter, please click on the link below. Anyone who does not complete this action before 5 pm EST tomorrow (Thursday) will receive three months’ severance pay. Regardless of your decision, we appreciate your efforts for Twitter’s success.”
RTE, the Irish public broadcasting company, reported that Michael McNamee, an adjudicating officer at the Irish Workplace Relations Commission (WRC), ruled in a 73-page verdict that Twitter’s sudden dismissal of Irish executive Gary Rooney was unfair. Rooney argued that his contract specifically stated that his resignation must be submitted in writing, rather than by leaving a form blank.
The WRC ordered Twitter (now renamed X) to pay Rooney over 600,000,significantlymorethantheinitiallyproposedseverancepackageoflessthan25,000. According to multiple media reports, this is the highest compensation record set by the WRC, including approximately $220,000 for “loss of future earning potential.”
While the WRC rejected Rooney’s claim for a performance bonus in 2022, they largely upheld his claim of unfair dismissal.
Rooney expressed that he had worked at Twitter for nine years and loved his job, but Musk’s email did not clarify the specific details of the new contract, leaving him confused. He was hesitant due to concerns about potential changes to his benefits and stock options if he agreed.
Twitter attempted to argue that Rooney’s discussions on Slack and tweets about the email indicated his intention to resign, but the court deemed these irrelevant to the case. The Labor Commission ruled that no employee should be forced to unconditionally accept any proposal under such circumstances.
This incident is not isolated. Following Musk’s acquisition of Twitter, numerous laid-off employees have filed lawsuits, and Rooney’s victory may trigger more similar legal actions. Twitter has the option to appeal the decision of the Irish Labor Commission.
