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Microsoft contractors win $72m payout
Permatemps rejoice

By Jo Best

Published: Monday 03 October 2005

Microsoft's very long-running 'permatemps' dispute looks as if it will finally be resolved with the news that a judge has ordered Microsoft to start paying a multimillion-dollar settlement to former workers.

The legal wrangling stems from a 2001 court judgement won by a group of long-term former Microsoft contractors. The contractors weren't awarded the same benefits as permanent Microsoft staff, leading the 'permatemps' to take legal action against the company.

After winning the case, the more than 8,000 permatemps were awarded a settlement of $97m, with the court deciding Microsoft had not given the permatemps equal access to its employee stock option scheme.

However, the ex-Redmond workers have yet to see the money due to protracted legal wrangling.

Now, according to reports, a federal judge has now formally OKed the payout and the contractors are expected to see their cheques in the post this month.

Four years on, post-lawyers' fees, the actual amount that will be given to the former Microsoft staff will be $72m, according to the Associated Press.