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Twitter’s payout to unfairly dismissed manager is slashed
🇮🇪 Ireland /Economy & Trade

Twitter’s payout to unfairly dismissed manager is slashed

From Irish Times · (6d ago) English Critical tone

Summarized and contextualized by DistantNews.

TLDR

  • A senior manager at Twitter, Gary Rooney, who was awarded over €550,000 for unfair dismissal, has had the payout significantly reduced by the Labour Court.
  • Rooney claimed unfair dismissal after being locked out of systems following Elon Musk's 'hardcore' work ultimatum, which required employees to tick a box to accept new terms or be deemed resigned.
  • The Labour Court excluded future share unit payments from the award, reducing it to €201,458, finding that the scheme's conditions required the recipient to still be employed by the company.

The Labour Court's decision to slash the payout for Gary Rooney, a former senior manager at Twitter (now X), represents a significant blow to his unfair dismissal claim. Initially awarded a record €550,131 by the Workplace Relations Commission (WRC), Rooney's award has been reduced to €201,458, a stark reminder of the challenges faced by employees in the post-Musk era at the social media giant.

only exceptional performance would constitute a passing grade

— Elon Musk's emailDescribes the demanding work environment imposed by Musk.

Rooney's case stemmed from his departure in December 2022, following Elon Musk's infamous 'fork in the road' email. This ultimatum demanded employees commit to 'extremely hardcore' work or be considered resigned. Rooney argued he did not intend to resign but lacked sufficient information to make an informed decision, despite his prior recognition for hard work. His subsequent lockout from company systems after the deadline was deemed unfair dismissal by the WRC.

Staff were required to signal their acceptance of these requirements by ticking a box and told if they did not they would be deemed to have resigned. They were given less than two days to make their decision.

— Article textExplains the ultimatum given to Twitter employees.

The Labour Court's intervention focused on the Restricted Share Unit (RSU) scheme. While acknowledging Rooney's unfair dismissal claim, the court excluded the substantial portion of the award related to future RSU payments. This was based on the scheme's explicit condition that recipients must remain employed by the company. This ruling underscores the importance of contractual terms, even in the face of potentially unfair dismissal, and highlights the complex legal landscape employees navigate in high-profile tech companies undergoing significant upheaval.

Rooney did not tick the box but said he had not intended to resign. Instead he did not have enough information, including on issues like benefits, to make a fully informed decision and that he had tried to follow up with the company’s HR department in order to clarify what was being suggested.

— Article textDetails Rooney's explanation for not accepting the new terms.
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Originally published by Irish Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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