Why Did X Have To Pay Rs 5 Crore To Fired Employee? Find Out Here

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New Delhi: X, formerly known as Twitter has found itself in legal hot water. The company has been ordered to pay €550,000 (around ₹5 crore) in compensation to Gary Rooney, a former employee who was dismissed in December 2022.

Gary Rooney had been working at Twitter’s Ireland unit since September 2023, as reported by fortune. However, in December 2022, he was unfairly dismissed. On Tuesday, Ireland's Workplace Relations Commission ruled in his favour, ordering X (formerly Twitter) to pay him €550,000. This is the largest compensation ever awarded by the agency.

Shortly after taking over Twitter, in November 2022 Elon Musk sent out an email to all employees with a tough choice to commit to  "long hours at high intensity" or be let go with three months’ severance pay. Employees, including Gary Rooney, were given just one day to decide by clicking "yes" to accept these new working conditions.

In the email, Elon Musk stated, "If you're certain you want to be part of the new Twitter, please click yes on the link below." He added that employees who chose not to click would receive three months' severance pay.

The Conflict

X claimed that Gary Rooney had voluntarily resigned by not clicking "yes" on Elon Musk's ultimatum. However, Ireland's Workplace Relations Commission disagreed.“It is not OK for Mr. Musk, or indeed any large company to treat employees in such a manner in this country or jurisdiction. The record award reflects the seriousness and the gravity of the case,” said Barry Kenny, Rooney's solicitor, in a statement to Bloomberg.

Elon Musk, the billionaire behind Tesla took over Twitter in October 2022 for $44 billion. Shortly after, he laid off nearly half of the company's workforce and gave an ultimatum to those who remained which ultimately led to Gary Rooney's dismissal.