- Tesla sent notices canceling some separation agreements, according to two fired employees and a notice viewed by Business Insider.
- Elon Musk previously said that some severance packages were “incorrectly low.”
- The cancellations came after some workers received layoff offers worth two months’ pay.
Some laid-off Tesla workers received notification Thursday that their separation agreements had been canceled and that they were awaiting new ones, two laid-off workers told Business Insider.
The workers received notification of a document titled “Your Separation Agreement,” with “status: canceled,” according to one of the emails obtained by BI. The notification read: “Cancelled by sender: Cancellation to send updated agreement,” according to a screenshot of the message. The email appears to be an automated email from Adobe’s Acrobat Sign e-signature tool.
This notification comes after Elon Musk sent a company-wide email to current Tesla employees on Wednesday, claiming that “some severance packages are incorrectly low.”
“My apologies for this error. It is being corrected immediately,” Musk said in the email seen by BI.
Some of the former employees who received the notification had already been offered two months of severance pay. Severance packages do not appear to be weighted based on workers’ length of tenure at Tesla, as workers who worked between a few months and several years at Tesla received the same number of weeks of pay, according to five sources who received offers. said BI.
Other workers told BI that as of Thursday afternoon they had still not received information about severance packages.
Under the Worker Adjustment and Retraining Act, companies that employ more than 100 workers are required to provide 60 days’ notice before a large-scale layoff. Violations of the WARN Act can entitle workers to up to 60 days of pay and benefits if they do not receive proper notice.
Musk announced Sunday evening that he planned to cut more than 10% of Tesla’s workforce. Affected workers received emails informing them of their dismissals hours after Musk’s internal announcement.
A Tesla spokesperson did not immediately respond to a request for comment.
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