According to the British “Financial Times”, the British staff who were fired by Twitter after Elon Musk took over, claims that they were unlawfully fired. They do not accept the severance terms that Musk is offering saying it is illegal. This is also the latest labor-related challenge that Elon Musk will have to face. London-based Winckworth Sherwood law firm wrote to Twitter on January 10. The firm is accusing the social media company of imposing “illegal, unfair and completely unacceptable practices” on former British employees in a “fake layoff process”. The firm also claims that the treatment of Twitter’s former staff is poor.
Winckworth is filing charges against Twitter on behalf of 43 of the company’s layoffs. Recall that in early November 2022, Elon Musk laid off thousands of Twitter staff worldwide. In the U.K., about 180 staff were affected. This came a few days after the $44 billion takeover by Musk.
Staff claims Musk and Twitter broke labour laws
Law firms have warned that many plans to take the social media company to employment court if their complaints are not resolved. At the moment, Twitter already has a long list of legal cases to handle. Furthermore, in the coming months, the company will probably have to deal with more.
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Labor rights lawyer, Shannon Liss-Riordan said Twitter has faced at least 200 legal complaints in the United States. These are cases that are in the form of arbitration demands. The company will also face four class-action lawsuits from those affected by the layoffs.
The legal complaints come as Musk ramps up his cost-cutting efforts at Twitter. Musk argues that the company could face $3 billion in annual negative cash flow and even “bankruptcy” if he fails to make Twitter financially healthy. The belt-tightening move, however, has raised concerns about Twitter’s compliance with local laws around the world. This is what is prompting legal action by some former staff that could cost the company even more if they succeed.