Agoda admits error over severance clause

Letters discouraged staff from seeking union or government help.

Online travel platform Agoda has admitted it was wrong to include clauses in severance letters that discouraged employees from seeking help from unions, government agencies, or statutory bodies.

In a statement, the company acknowledged the misstep following the leak of retrenchment letters containing the clauses, which surfaced in the press on 17 September.

“We recognise that this regretfully led to a negative impact on some of our employees, and for that we apologise,” the statement read. “We reaffirm that we are fully supportive of the spirit of the tripartite employment practices Singapore is known for.”

Following the leak, Agoda met with the National Trades Union Congress (NTUC), the Singapore Industrial and Services Employees’ Union (SISEU), the Ministry of Manpower (MOM), and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP).

In a joint statement, NTUC Secretary-General Ng Chee Meng and SISEU Executive Secretary Desmond Tan commended Agoda for its “proactive approach” in engaging unions and government agencies, and for being transparent about the retrenchment process.

SISEU is now assisting affected employees with support and advice.

MOM welcomed Agoda’s reversal, calling it a positive example of Singapore’s tripartite system where employers, unions, and the government work together.

The ministry reminded employers that whilst severance agreements are allowed, they must not prevent employees from approaching unions or authorities.

MOM also noted that NTUC, its e2i (Employment and Employability Institute), and Workforce Singapore (WSG) are prepared to provide job-matching and career coaching services for affected workers.

NTUC urged companies to remain open and transparent during retrenchments and to avoid layoffs during festive periods.

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