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Microsoft lets laid-off employees keep overpayment

updated 05:00 pm EST, Tue February 24, 2009

Microsoft overpays workers

After making a clerical error on the severance pay of 25 laid-off employees, overpaying them and asking for the difference back, Microsoft has said it will let affected ex-employees keep the money. Lisa Brummel, the senior vice president of human resources at the software giant, calls the error a unique circumstance and that the "normal course of business doesn't really apply." The overpayments range from a few hundred dollars to more than $5,000, but average between $4,000 and $5,000.

The mistakes are additionally compounded by shortfalls elsewhere, as 20 other laid-off employees were not paid enough severance. These were sent checks making up for the shortages, Microsoft says. Brummel called each of the 25 overpaid employees after they were asked to return the difference, and explained Microsoft will not seek repayment from them.

"I can tell you universally they were quite happy," she says.

She further claims that the media attention regarding the matter hasn't affected the decisions of herself or Microsoft, and that she was notified of the issue via internal channels.

The total 45 affected ex-employees are a small fraction of the 1,400 lay-offs Microsoft announced on January 22nd.

 
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