Agoda apologises for 'inappropriate' severance clauses, will work with labour movement to support retrenched employees

SINGAPORE: Agoda on Friday (Sep 19) apologised for including "inappropriate" clauses in its severance agreements that discouraged retrenched employees from approaching trade unions, government agencies and statutory bodies.

This comes following discussions between the online travel platform and the Ministry of Manpower (MOM), the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), the National Trades Union Congress (NTUC) and the NTUC-affiliated Singapore Industrial and Services Employees’ Union (SISEU).

"We acknowledge that it is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities for all situations," Agoda said in a statement.

"This runs counter to the spirit of fair and responsible employment practices in Singapore, and Agoda apologises for any language in our agreements that gave the impression employees could not approach government agencies, statutory bodies or trade unions for additional support and advice. This is their statutory right."

Agoda also apologised for the "negative impact" the matter had on some of its employees, and said that it is "fully supportive of the spirit of the tripartite employment practices Singapore is known for".

In a separate statement, NTUC secretary-general Ng Chee Meng and SISEU executive secretary Desmond Tan said: "We appreciate the management of Agoda for taking a proactive approach in engaging NTUC, SISEU and the government, and for its transparency in sharing information regarding the exercise.

"The union has also ascertained that the retrenchment (benefits) provided to the affected workers are aligned with industry guidelines"

MOM, meanwhile, said that the development was "encouraging", calling it "an endorsement of Singapore's strong tripartite approach, where employers, unions and the government work closely to safeguard the interests of our workers in the spirit of fair and responsible employment practices".

"While employers can enter into severance agreements with retrenched employees, they should not prevent the latter from reaching out to authorities and unions with genuine concerns," a spokesperson for the ministry said.

"Employers must uphold the spirit of fair and progressive employment practices, particularly during significant workforce changes such as retrenchments."

Mr Ng and Mr Tan added that Agoda management had agreed to work with the labour movement to support the affected workers through their transition.

Agoda said that it was contacting affected employees to ensure that they have access to the support schemes of NTUC's Employment and Employability Institute, or e2i.

"We empathise deeply with employees who have been impacted by this restructuring and want to reaffirm our commitment to maintaining open communication, upholding fair employment standards and supporting Singapore's world-class workforce," Agoda said as it concluded its statement.

"We are proud of our deep roots in Singapore, our home market. We will keep investing in Singapore and continue to hire highly skilled jobs, particularly in the (artificial intelligence), product and technology space."

WHAT HAPPENED

Agoda confirmed on Wednesday that it had axed its customer support roles in its Singapore, Hungary and China offices while creating new positions in other geographic locations.

CNA understands that about 50 employees in Singapore were affected by the move.

In one portion of a severance agreement seen by CNA, employees were instructed not to make reports with any government agencies, statutory boards or trade unions, including MOM, the Tripartite Alliance for Dispute Management (TADM) and TAFEP.

They were also asked to refrain from bringing any mediation requests, claims or proceedings on their employment or termination against the company.

Those who did so and breached the terms in the agreement would have their severance entitlements revoked, the document stated. Employees who had already received severance payments from Agoda would have to repay the company "in full" and "on demand".

MOM said later on Wednesday that it takes a "serious view" of such provisions, and that it was looking into the agreements. 

Separately on Wednesday, NTUC and SISEU said in a strongly worded statement that they were "appalled" by the agreements, calling Agoda's instructions "irresponsible and regrettable".