Laid-off Tesla workers have lodged an emergency motion to stop Elon Musk’s firm from working workers to sign releases in return for less severance pay.

As part of its current lay-off program, Tesla has been asking employees to agree to release it from any claims in return for severance of only one or two weeks’ pay and benefits, the motion filed in a Texas court claims.


The motion said: “Employees who have lost their jobs are typically eager to get whatever additional pay that they can get and have no reason to know that they are entitled to more due to Tesla’s violations of the WARN Act.”

“In short, Tesla hopes to buy off these class members’ claims for pennies on the dollar.”

The motion claims this is only a fraction of the real severance pay and benefits that the employees would be entitled to under labor law, the Worker Adjustment and Retraining Notification (WARN) Act.

The two ex-employees also filed a suit in June, claiming the firm violated the law by conducting a “mass layoff” without providing the requisite 60-day notice.

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Elon Musk, CEO of Tesla, informed senior executives last month that he had a “super bad feeling” about the economy and that the business needs to slash workers by approximately 10 percent.

Later, the billionaire stated the 10 percent cut would only apply to paid employees and that hourly staff numbers would continue to expand.

Tesla has closed its San Mateo, California, location and laid off around 200 people who worked on its Autopilot driver-assist system there. The majority of those laid off were hourly workers.

The company is facing a slew of challenges, from production issues to growing inflation, which could crush profitability, and deliveries have dropped for the first time in two years.

Source: Reuters

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