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US court rules Twitter breached contract over failure to pay bonuses
US court rules Twitter breached contract over failure to pay bonuses
by AFP Staff Writers
San Francisco (AFP) Dec 23, 2023

A US federal court ruled on Friday that social media company Twitter, now branded X, violated contracts by failing to pay annual performance bonuses it orally promised its workers.

The breach-of-contract lawsuit was brought by former employer Mark Schobinger in June.

The lawsuit said Twitter had promised workers a 2022 performance bonus if they stayed with the company through the final possible payout date, which was the first quarter of this year.

The court threw out Twitter's attempts to have the case dismissed, ruling that Schobinger's claim of breach of contract under California law was valid.

"Schobinger has plausibly stated a breach of contract claim under California law. He alleges that Twitter orally promised to pay each employee a portion of the bonus contemplated," wrote US District Judge Vince Chhabria.

"And by allegedly refusing to pay Schobinger his promised bonus, Twitter violated that contract," said the judge.

X can still appeal the court's decision.

The social network now owned by Elon Musk, is currently facing multiple headwinds, including an EU probe under a law designed to combat disinformation and hate, criticism of the platform's response to recent rioting in Dublin, and an exodus of big-name advertisers.

The company is now worth less than half of the $44 billion he paid for it in October 2022, according to internal documents sent to staff and reported by tech publication The Verge.

Belgian courts agrees Deliveroo couriers are 'employees'
Brussels (AFP) Dec 22, 2023 - A Belgian court ruled Friday that two dozen couriers for food delivery app Deliveroo should be classified as employees, a defeat for the firm that could grant workers more benefits.

The judgement in the test case, which was backed by labour unions, overturned an earlier ruling that went in the British company's favour.

"There is reason to reclassify the employment relationship between the couriers and Deliveroo Belgium as an employee-employer relationship and to apply the social security regime for salaried workers," the ruling from the Brussels labour court said.

Deliveroo said it was "disappointed" by the verdict.

"The judgment does not take sufficient account of the specificities of our working model. Deliveroo is carefully studying the judgment and will then appeal," it said.

But it was hailed as an "important milestone" by Martin Willems, who heads a collective representing couriers.

"Delivery workers can now claim the social and labour rights that apply to all other workers, starting with correct remuneration, the right to paid leave and their salary in the event of illness," Willems said.

The court will now examine the financial consequences of the judgement for the couriers concerned, in terms of payment of contributions and regularisation of salaries.

The ruling in Belgium comes after Spain last year became the first country in the European Union to approve legislation recognising delivery riders for firms such as Deliveroo or UberEats as staff.

The EU is eyeing a law to reclassify people working through apps, such as ride-hailing drivers, as employees throughout the bloc.

But that draft legislation was rejected on Friday by a coalition of countries spearheaded by France, in a move that drew condemnation from left-wing lawmakers and unions.

Italy fines Meta for hosting gambling advertising
Rome (AFP) Dec 22, 2023 - Italy's communications authority said Friday it had fined Facebook's parent company Meta 5.85 million euros ($6.4 million) for carrying gambling advertising.

Italy has outlawed gambling advertising since 2018, with the ban applying to all media, including social networks.

The authority, Agcom, said the fine was imposed on Meta Platforms Ireland Limited.

It said its investigation "found promotional material or other advertising, including indirect, for betting or games involving money on 18 profiles/accounts (five on Instagram and 13 on Facebook), as well as 32 sponsored contents."

Agcom recently punished YouTube and Twitch for similar offences.

Meta has already been fined numerous times in Europe, above all for violating data protection laws.

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