Canberra/New York: Elon Musk’s social media platform, X, is embroiled in a controversy as it seeks reimbursement from former Australian employees who were allegedly overpaid due to a currency conversion mistake. The platform, previously known as Twitter, acknowledged the error and is now pursuing refunds, some as high as $70,000, according to The Sydney Morning Herald.
The overpayments occurred because X incorrectly calculated the currency exchange rate from US to Australian dollars when issuing severance payments. Some affected employees were terminated over 18 months ago, with at least six individuals receiving legal notices demanding repayment.
In an email from X’s Asia Pacific human resources department, the company stated, “It has come to our attention that you received a significant overpayment in error in January 2023. We would be grateful if you could arrange the repayment to us [using the account details below] at your earliest convenience.”
The overpaid amounts relate to “deferred cash compensation” in the form of employee shares distributed when the staff joined Twitter. These shares were valued at $US54.20 ($82) each, the acquisition price when Musk purchased Twitter in 2022. The number of shares issued depended on the duration of an employee’s tenure.
Due to the currency conversion mistake, overpayments ranged from $1,500 to $70,000. One instance indicated that X disbursed share entitlements based on a conversion rate 2.5 times higher than the actual share value.
According to reports, separate communications from X warned former employees that failure to comply with the repayment demand could lead to legal action. “Twitter Australia Holdings Pty Ltd reserves the right to commence proceedings for the recovery of the overpayment, together with interest,” the correspondence stated.
