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Microsoft asks laid off employees to pay cash back

Oops, Redmond makes accounting error

Tags: microsoft

By Steven Musil

Published: 23 February 2009 09:12 GMT

Microsoft says it made an accounting error when it laid off some employees last month and is asking for employees to pay it back.

The software giant, which recently laid off 1,400 employees, sent letters last week to some of those former workers letting them know that their severance payouts were a bit too "generous" and requested the former employees pay back that money, according to a report Saturday on TechCrunch.

The letter states: "An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft. We ask that you repay the overpayment and sincerely apologise for any inconvenience to you."

A Microsoft spokesperson confirmed the authenticity of the letter posted by TechCrunch but declined further comment, saying it was "a private matter between the company and the affected people".

The company declined to specify how many of these letters were sent out, and it's unknown how much the overpayments total, but it did indicate that some laid off employees were also undercompensated.

The letter failed to provide an explanation for the accounting error but did manage to add a veiled threat of monetary punishment if the money wasn't repaid in the form of a tax impact.

Original article: Microsoft wants refund from some laid off workers from CNET News.com

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