Agoda had several discussions with NTUC, SISEU, MOM & TAFEP
Agoda has admitted that a clause in its severance agreement was “inappropriate” and agreed to work with the National Trades Union Congress (NTUC) to support retrenched staff.
This came after discussions with unions and the authorities, said a joint statement by NTUC and the Singapore Industrial and Services Employees’ Union (SISEU) on Friday (19 Sept).
Source: Careers at Agoda
NTUC appreciates Agoda engaging the authorities on the issue
The statement, posted by NTUC chief Ng Chee Meng on Facebook, said Agoda management had “several discussions” with NTUC and SISEU.
Representatives from the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) were also present.
NTUC and SISEU conveyed their appreciation to Agoda for “taking a proactive approach” in engaging the authorities on the issue, as well as its “transparency” in sharing information, adding:
The union has also ascertained that the retrenchment (benefits) provided to the affected workers are aligned with industry guidelines.
Agoda to work with NTUC to support retrenched staff
The severance agreements of about 50 retrenched Agoda employees in Singapore contained a clause instructing them not to make any reports to third parties, including government agencies, statutory boards and trade unions, reported The Business Times.
Those who breach these terms would not be entitled to the severance payment and must repay any payment received, the agreement also said.
Agoda has now acknowledged that such provisions were inappropriate, NTUC and SISEU said.
It will now work with NTUC to support the affected workers through their transition.
SISEU is reaching out to the affected workers to provide guidance and support.
Agoda apologises for ‘negative impact’
In an Agoda statement quoted by Channel NewsAsia (CNA), the company apologised 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”, and such including such provisions “runs counter to the spirit of fair and responsible employment practices in Singapore”, it said.
Agoda also apologised for the “negative impact” this had on its staff, maintaining that it is “fully supportive of the spirit of the tripartite employment practices Singapore is known for”.
Source: Careers at Agoda
It is now contacting affected employees to make sure they have access to NTUC’s support schemes, adding:
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.
Professing to be proud of its “deep roots” in Singapore, it promised to keep investing in the Republic and hiring highly skilled jobs.
Latest development encouraging, says MOM
MOM, which previously said it was looking into the clause in Agoda’s severance agreement, said the latest development was “encouraging”.
An MOM spokesperson told CNA that employers can enter into severance agreements with retrenched employees but should not prevent them from reaching out to the authorities and unions with “genuine concerns”, saying:
Employers must uphold the spirit of fair and progressive employment practices, particularly during significant workforce changes such as retrenchments.
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Featured image adapted from Careers at Agoda and MS News.
