In an unexpected turn of events, Microsoft, a global tech giant employing over 2 lakh people worldwide, has agreed to settle a discrimination case with its employees. The settlement, totaling approximately Rs 117 crore ($14.4 million), addresses allegations that the company systematically discriminated against employees who took leave for reasons such as pregnancy, disability, illness, or caregiving.
The California Civil Rights Department (CRD) confirmed the settlement following an investigation initiated in 2020. The case culminated in a verdict by the Santa Clara County court, prompting Microsoft’s agreement to compensate affected employees. An independent agency will oversee measures to prevent future discrimination within the company.
The core issue revolved around disparities in bonuses and performance reviews, which consequently impacted salary increases and promotions for affected employees. As per the court’s decision, eligible employees, active since May 13, 2017, will receive a base payment of Rs 1.25 lakh (amounting to $1,500), with additional compensation based on salary and tenure.
Microsoft, known for its progressive policies like Discretionary Time Off (DTO), which allows flexible leave approvals based on managerial discretion, has around 7,000 employees in California out of its workforce of 2.21 lakh across the globe. DTO, distinct from traditional fixed leave policies, emphasises results-oriented work culture, enabling employees to manage their schedules while meeting job expectations.
The settlement underscores Microsoft’s commitment to rectifying workplace discrimination issues and promoting equitable treatment among its diverse workforce.
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