Elon Musk, the billionaire owner of X, formerly known as Twitter, finds himself in hot water once again. This time, it’s not about his recent interview with former U.S. President Donald Trump, but rather a hefty fine imposed by the Workplace Relations Commission (WRC) in Ireland. X has been ordered to pay £550,000 (approximately ₹5.9 crores) to a former senior staff member in its Ireland-based operations. This award marks a record sum in a case related to unfair dismissal.
Background of the Case: Gary Rooney’s Alleged Resignation
The WRC’s ruling comes in response to a petition that claims X wrongly concluded that employee Gary Rooney had resigned. Rooney’s supposed resignation stemmed from his failure to tick a box in an email sent by Musk in November 2022, which demanded immediate agreement to unspecified new pay and conditions. Employees were given just 24 hours to respond.
Unfair Dismissal Ruling
The court determined that Rooney was unfairly dismissed for not responding to Musk’s email, which called for staff to be “extremely hardcore.” On November 18, 2022, Rooney, who had been with Twitter since 2013, was informed that his lack of response equated to his resignation.
Musk’s Takeover and Vision for X
In October 2022, Musk acquired Twitter for $44 billion and subsequently renamed it X. At the time, Rooney was serving as the director of source-to-pay at Twitter’s Dublin office. Musk’s first email as the new chief emphasized the need for a “breakthrough Twitter 2.0,” with an expectation of long hours and high intensity, where only exceptional performance would suffice.
The Controversial Email and Its Aftermath
In his email, Musk urged staff to click “yes” on a link if they wanted to be part of the new direction. Those who didn’t respond within the stipulated time frame would receive three months’ severance pay. Rooney chose not to click “yes” and, by November 19, 2022, received another email asking him to acknowledge his resignation.
Rooney’s Response to the Dismissal
After being deemed to have resigned, Rooney’s access to Twitter’s systems was revoked. He later emailed Twitter, clarifying that he had neither indicated his resignation nor accepted any separation agreement. He expressed disbelief and fear upon receiving Musk’s email, suspecting it might be spam or malware.
WRC’s Decision and Its Implications
During the WRC hearing, Lauren Wegman, the senior director of human resources, revealed that out of 270 staff, 235 had accepted Musk’s terms, with 140 having been previously made redundant. The WRC awarded Rooney £550,131, which includes £350,131 for lost pay between January 2023 and May 2024, plus an estimated future pay loss of about £200,000.
Impact of the Ruling
Twitter International Unlimited Company, now operating as X, has been instructed to compensate Rooney for his wrongful dismissal. The WRC found that X mischaracterized Rooney’s non-response as a resignation, leading to an unjust termination.
Musk’s Extensive Layoffs at X
Following the November 2022 email, Musk proceeded to dismiss over 6,000 employees, approximately 80% of the workforce. Remaining staff members were compelled to justify their roles and even assess the necessity of their colleagues.
