Tesla cuts 10% of its workforce a few weeks ago and now we’re getting a better look at what kind of severance package it will be recently laid off workers in progress. CEO Elon Musk emailed affected employees late on the night of April 14 to notify them that they terminate immediately and cut out by Tesla internal systems. He also told them they would receive termination information “within 48 hours.”
Currently, Business insider reporting The automaker is headquartered in Austin, Texas is providing workers with two month of severance paymeaning they will be paid until June 14, according to five former workers who spoke with Sockets. It appears that packages are not weighted based on time spent in service at Tesla. That means workers who work from a few months to a few years at the automaker are paid the same number of weeks. Brutal. That’s why you need a union.
Besides, Tesla Employees are given “30 days or 3 months (or both)” from the date of contract termination to exercise their assigned rights. stock options. Employees will also have the PTO they have accrued as of their termination date paid out in their final paycheck.
Coincidentally, two months of quitting your job is also the amount of time you need to get over it. WARN ActEQUAL Business insider explain:
Under the Worker Adjustment and Retraining Notification Act, companies with more than 100 workers must provide 60 days’ notice before large-scale layoffs. But Tesla’s severance offer could resolve any potential penalties if found to have violated the WARN Act, which says fired employees could be entitled to up to 60 days of pay and benefits if not appropriate advance notice.
Tesla also offered to pay for two months of COBRA health insurance costs for workers already insured through the company, according to a severance package proposal seen by BI.
Like everything with Tesla (and large companies in general), severance packages are tied. Obviously, to get the payment, Fired workers must sign a contract that prevents them from participating in any mass lawsuits or arbitrations against the automaker, sharing any of the company’s trade secrets, or publicly defaming Tesla. Business insider says this is pretty standard for severance agreements.
Fired workers will be required to sign the agreement within five business days of receipt, and they will be paid severance pay 45 days after the termination date.
Let’s not forget that Tesla initially sent the wrong severance information to its employees, which made Musk actually apologize for something for once. That’s growth.
