X Appeals Record Unfair Dismissal Award of €550,131 to Former Executive

The main Irish division of Elon Musk’s X Internet Unlimited Company is set to appeal a ruling at the Labour Court that requires the company to pay a record unfair dismissal award of €550,131 to former executive Gary Rooney. The appeal will begin on October 3, 2023, following a decision made by the Workplace Relations Commission (WRC) last August. The WRC found that Rooney was unfairly dismissed after he did not respond to an email from Musk, famously referred to as the ‘Fork in the Road’ email.

In the WRC ruling, Adjudicator Michael MacNamee determined that Rooney, who served as the Director of Source to Pay, was let go in December 2022 due to his failure to click “yes” in response to Musk’s email sent on November 16, 2022. The email outlined a new, demanding work environment at the company, stating that only those willing to commit to “high intensity” work should remain.

Rooney has not yet received any payment from the award while the case is under appeal. The Labour Court has scheduled hearing days for October 3 and October 4 at its headquarters in Dublin. Rooney’s solicitor, Barry Kenny of Kenny Sullivan Solicitors, has not commented on the upcoming proceedings, but previously expressed that his client is eager to move past this issue. Kenny stated, “My client is anxious to put all this behind him,” and added that they hope the Labour Court will uphold the WRC’s decision.

During the WRC hearings, X contested the claim, arguing that Rooney voluntarily resigned. The WRC’s findings indicated that Rooney’s dismissal was directly related to his inaction regarding Musk’s email. MacNamee concluded that the dismissal was unjust, particularly given Rooney’s long tenure and loyalty to the company.

In the contentious email, Musk conveyed his vision for a revamped Twitter, now X, urging employees to commit to a rigorous work ethic. He wrote, “Only exceptional performance will constitute a passing grade.” Those who agreed were instructed to click a link, which Rooney did not do. Consequently, a follow-up email on November 19, 2022, noted his “decision to resign and accept the voluntary separation offer,” a claim Rooney disputed.

Rooney’s substantial award comprises €350,131 in past earnings and projected future losses of €200,000, reflecting his pre-dismissal annual remuneration of €323,560. This amount included €151,225 in salary and €172,335 in deferred cash. In September 2023, Rooney secured a new position in the banking sector, earning a total remuneration of €129,897.

As the appeal progresses, the Labour Court will have the authority to confirm, adjust, or overturn the WRC’s decision. X plans to present at least three witnesses in its defense, while Rooney will testify as the sole witness for his case. The outcome of this appeal could have significant implications for workplace dismissal standards in Ireland, particularly in the context of high-profile corporate environments.