Engineer sues datacenter developer Nscale as it gets ready for listing on New York stock exchange; claims
Article excerpt
Nscale United Kingdom-based artificial intelligence infrastructure provider Nscale is facing a wrongful dismissal lawsuit in Norway. According to a report in Bloomberg, a former data center engineer has alleged in a lawsuit that the UK-based datacenter developer has utilized an illegal subcontracting setup. The lawsuit, filed on October 16 in the Sr-Rogaland District Court and backed by local trade unions, names both Nscale and staffing subcontractor CloudBrothers as defendants. According to the complaint reviewed by Bloomberg, the engineer claims that while he was placed at Nscale’s Stavanger facility through CloudBrothers, Nscale acted as his de facto employer by directly dictating his day-to-day duties and shift schedules. Under Norwegian labor law, subcontracting arrangements require staffing companies to manage personnel independently; end clients that treat subcontracted personnel as direct extensions of their own workforce are legally required to grant them full employee rights and compensation. The engineer alleges his June dismissal came as retaliation after he objected to employment practices at the facility. Tensions surfaced when CloudBrothers human resources reportedly told employees that two weeks of holiday pay would be withheld if vacation requests were submitted late. "You cannot deduct our worked salary," the engineer replied in an email copying the entire...
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Nscale previously confirmed it had cut ties in Stavanger with another contractor, Technimove, which had placed staff through CloudBrothers.