StellaShaw
February 13, 2022
"Micro Focus: A Case Study in Corporate Negligence"
Micro Focus: How to Mess Up When It Matters
If you're in a hurry, here’s a quick rundown 😊. You can dig deeper by looking up the title on Google.
Back in 2019, Micro Focus dropped the ball on some benefits enrollment but still gave the green light. Fast forward to September 2020, they switched up the promised benefits for that year, including supplemental perks that could roll over or be taken when an employee left. They went ahead and altered the statement meant to kick off on January 1, 2020, backdating it in a sneaky way that seemed to cover up the changes. This impacted between 12 to 32 employees, many of whom likely didn’t even catch on.
During the 2021 enrollment period, the HR benefits team at Micro Focus tried to brush off the significance of this blunder, especially concerning supplemental life insurance, which was misleading. They assured folks they could fix the issue, but that turned out to be false. Consequently, some employees dropped their existing life insurance and ended up losing coverage. Micro Focus didn’t provide any means to get that coverage back, except through added complications and risks during the pandemic and state lockdown.
There was no follow-up from Micro Focus about compensating for the lost coverage. When the HR department was called out for document tampering, fraud, and a cover-up, they responded with threats, using language that felt like mock litigation, courtesy of outside legal counsel. The aim of this discussion was to argue why Micro Focus shouldn’t be held responsible. Yet, they never tackled the breach of commitments or the harm caused by reasonable reliance. They only brought up that ERISA law would shield them, which is a whole different ball game. They ignored the fact that life insurance was lost during a pandemic when risks were sky-high. The investigation into these whistleblower claims and the legal rationale were led by the head of litigations!
All this went down despite Micro Focus having a no-retaliation policy. One could see this as an attempt by Micro Focus to push out older employees who have solid records but come with a higher price tag. It’s a form of age discrimination. Clearly, Micro Focus is indifferent, as they are pulling back investments across the board, including in crucial business areas.
Employees and those thinking about joining should think twice about this company. Why stick around a place that shows no concern? Customers should also ponder whether they can trust businesses that conduct thorough audits yet fail to keep their promises.