Agoda apologises for ‘inappropriate’ severance clauses discouraging retrenched employees from reaching out to authorities
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SINGAPORE: Agoda has apologised for ‘inappropriate’ severance clauses that discouraged or inhibited retrenched employees for reaching out to government agencies, statutory bodies or trade unions.
The apology came after the online booking platform’s discussion with the Ministry of Manpower (MOM), Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), National Trades Union Congress (NTUC), and the Singapore Industrial and Services Employees’ Union (SISEU).
Channel News Asia (CNA) reported that on Wednesday, Agoda confirmed it had cut customer support roles in Singapore, Hungary, and China, with around 50 staff affected locally.
A severance agreement seen by the news outlet barred staff from contacting MOM, the Tripartite Alliance for Dispute Management (TADM), TAFEP or unions, and from pursuing mediation, claims, or proceedings against the company over their employment or retrenchment. Employees were also warned that breaching these terms could lead to losing their severance benefits, while those who had already been paid would be required to return the money in full and on demand.
In a press release on Friday (Sep 19), Agoda said: “We acknowledge that it is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities for all situations. 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, adding that they are “fully supportive of the spirit of the tripartite employment practices Singapore is known for.”
CNA reported that a MOM spokesperson said employers may enter into severance agreements with retrenched employees, but they should not prevent them from reaching out to authorities and unions.
NTUC secretary-general Ng Chee Meng and SISEU executive secretary Desmond Tan said the online booking platform has agreed to work with the labour movement to help affected workers during the transition.
Agoda said it is reaching out to affected employees to provide clarification and ensure they have access to the NTUC Employment and Employability Institute’s (e2i) support schemes, which provide job matching, training, and upskilling to help them transition to new opportunities.
“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 added. /TISG
Read also: Amid Agoda retrenchments, Leong Mun Wai calls for better protection for affected workers
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