Tesla has cut 10 percent of its workforce a few weeks ago, and now we’re getting a closer look at the nature of the severance package its recently laid off workers are always. CEO Elon Musk Late on the evening of April 14, the company sent an email to affected employees informing them that this was the case ended immediately and cut out Teslas internal systems. He also told them they would receive their severance information “within 48 hours.”
Now, Business Insider reports this Automaker based in Austin, Texas offers the workers two Months of severance payThat means they would receive their pay until June 14, according to five former workers they spoke to the drain. There does not appear to be any weighting of the packages based on length of service Tesla. This means that workers who were employed by the automaker for between a few months and several years were paid the same number of weeks. Brutally. This is why, folks, you need a union.
Additionally, Tesla Employees were given “either 30 days or 3 months (or both)” from the termination date to exercise their vested rights Stock options. Employees would also be paid any PTO they had accrued up to their termination date in their final paycheck.
Coincidentally, the two months of severance pay is exactly the time you need to avoid this WARN Actas Business Insider explained:
The Worker Adjustment and Retraining Notification Act requires companies with more than 100 employees to provide 60 days’ notice before a mass layoff. However, Tesla’s severance offer could take into account possible penalties if it is found to have violated the WARN Act, which states that laid-off employees can be entitled to up to 60 days of pay and benefits if they are not properly notified in advance.
According to a severance offer viewed by BI, Tesla is also offering to cover the cost of COBRA health insurance for two months for employees who were insured through the company.
Like all things with Tesla (and large companies in general) have conditions attached to the severance payment. Apparently, in order to receive the payout, Dismissed employees must sign a contract This prevents them from participating in lawsuits or mass arbitration proceedings against the automaker, passing on the company’s trade secrets or publicly defaming Tesla. Business Insider says this is fairly common in separation agreements.
Laid-off employees must sign the agreement within five business days of receipt and will receive severance pay for 45 days after the termination date.
Let’s not forget that Tesla initially sent its employees the wrong severance information actually caused Musk to apologize for something once. That is growth.
Be sure to contact BI for more information about what former Tesla employees are getting from the automaker.