Agoda apologises for 'inappropriate' severance agreement provisions

Laid-off employees were reportedly told not to reach out to authorities for support, advice

Agoda apologises for 'inappropriate' severance agreement provisions

Online travel agency Agoda has apologised for the "inappropriate" provisions in its severance agreements for retrenched employees in Singapore.

In a statement, the travel agency expressed apologies for any language in the agreements that implied laid-off employees could not reach out to the government or unions for additional support and advice.

"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 the statement.

"We recognise that this regretfully led to a negative impact on some of our employees, and for that we apologise."

Agoda retrenchment move

Agoda has retrenched 50 employees in Singapore. Previous reports indicated that affected staff were instructed not to inform government agencies or trade unions, or they risked getting their severance benefits revoked.

The travel agency said it is now contacting impacted employees to clarify the provisions and ensure they have access to support from the National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees' Union (SISEU).

It added that it has engaged with NTUC, SISEU, the Ministry of Manpower, and the Tripartite Alliance for Fair and Progressive Employment Practices to address the concerns raised about their severance agreements.

"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.

The NTUC and SISEU said they welcome Agoda's "proactive approach" in engaging with them.

They also ensured that the retrenchment benefits provided to employees are aligned with industry guidelines.

"The management of Agoda have agreed to work with the Labour Movement to support the affected workers through their transition. SISEU is reaching out to affected members and workers to provide guidance and support through this transition," the NTUC said in a statement.

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