Ministry says it is mindful not to over-regulate or be intrusive
Singapore's Ministry of Manpower (MOM) has said it is avoiding over-regulation after it was asked whether it would prohibit coercive clauses in contractual agreements, following inappropriate severance provisions from Agoda earlier this year.
"MOM understands and empathises with our workers' concerns over such inappropriate clauses," the ministry said.
"However, the government is mindful not to over-regulate and be intrusive into private contractual agreements that are often entered into voluntarily between employers and workers."
MOM was responding to an inquiry in Parliament that asked whether it would consider legislation to prohibit coercive clauses and protect workers' rights.
It comes after online travel agency Agoda had to apologise earlier this year for inappropriate provisions in its severance agreements that discouraged retrenched employees from informing the Singapore government or trade unions.
No severance agreement complaints
MOM said it has not received complaints that were similar to Agoda's case over the last three years, adding that it does not proactively monitor severance agreements that are private and confidential.
"However, if we receive complaints on the severance agreements, we will investigate the matter," the ministry said.
"Should workers encounter unfair or illegal clauses in their severance agreements, they may approach MOM or TAFEP. MOM takes a serious view of such clauses and will not hesitate to take action against errant employers where necessary."
According to MOM, employers are encouraged to conduct retrenchment exercises fairly and responsibly, including giving sufficient time for affected workers to consider the severance agreement offered.
"Provisions that discourage or inhibit employees from approaching the authorities should not be included under any circumstances," the ministry stated.
Retrenchments in Singapore remained contained in the third quarter of 2025, with 1.4 retrenched per 1,000 employees, according to MOM's preliminary data. Business reorganisation or restructuring remained the top reason for retrenchments.
