Former employees sued Musk-run Tesla for massive layoffs
Highlight
- In a notification, Tesla told employees that their termination would be effective immediately.
- Elon Musk said Tesla would cut its salaried workforce by 10% over the next three months
- Tesla employs more than 100,000 people at its facilities
Tesla has been sued by former employees who were sacked in the ongoing massive layoffs at the company. According to the details, the electric car maker has been accused of violating federal law in the United States.
A TV report said that John Lynch and Daxton Hartsfield, who worked at Tesla’s Gigafactory in the state of Nevada, said in the lawsuit that they were among “more than 500” Gigafactory employees who were terminated.
According to the lawsuit, Tesla mass layoffs violate the Worker Adjustment and Retraining Notification (WARN) Act.
The Act requires employers to notify workers at least 60 days in advance of closing a facility or laying off 50 or more workers from the same site.
“Tesla has failed to provide plaintiffs and class members with advance written notice of their termination,” the lawsuit read.
“Instead, Tesla has simply notified employees that their termination will be effective immediately. Tesla has also failed to provide details of the grounds for reducing the notification period to zero days’ advance notice,” it added.
He requested class-action status for his lawsuit, along with demanding 60 days of pay and benefits.
Tesla heading for more layoffs?
Elon Musk said on Tuesday that Tesla will cut its salaried workforce by 10 percent over the next three months.
The world’s richest man said the electric car maker will take a 10 percent pay cut over the next three months, as the company navigates global macro-economic conditions.
This would result in a reduction of about 3.5 percent of Tesla’s total workforce.
Tesla employs more than 100,000 people at its facilities.
Last week, Musk-owned SpaceX fired a group of employees who were involved in writing an open letter criticizing Musk’s behavior in the public sphere.
The firing violates US labor laws and the fired workers may also approach the National Labor Relations Board (NLRB) to sue SpaceX.
(With inputs from IANS)
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