The Ministry of Manpower (MOM) said it is looking into a purported clause in severance agreements issued to retrenched Agoda employees that allegedly warns them not to contact the authorities.
In a statement on Wednesday (17 Sept) night sent to Channel NewsAsia (CNA), MOM said such clauses are “inappropriate”.
Agoda’s retrenchment, first reported by The Business Times (BT) on Wednesday, cut customer support jobs from its offices in Singapore, Budapest and Shanghai.
About 50 employees in Singapore were affected, with their severance agreements reportedly containing a clause instructing them not to make any reports to third parties, including government agencies, statutory boards and trade unions.
Government bodies such as MOM, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and Workplace Safety and Health Council were explicitly named in a screenshot of the agreement posted by BT.
Source: Careers at Agoda
Retrenched employees were also allegedly told not to bring any mediation requests, claims or proceedings against Agoda.
Those who breach these terms would not be entitled to the severance payment and must repay any payment received, the agreement purportedly said.
However, an Agoda spokesperson told BT that it “categorically refutes the allegation that any warnings were issued”, saying that affected employees were “free to seek alternative legal options or engage with local authorities if they so wished”.
In its statement, MOM said it was inappropriate for employers to include clauses that discouraged employees from approaching the authorities, as it ran “counter to the spirit of fair and responsible employment practices”.
It would join TAFEP in looking into the matter, the ministry added, noting:
We take a serious view of such conduct, as it undermines trust in the employment framework and the avenues available for workers to seek support.
Hence, MOM and TAFEP “would not hesitate to take action” if necessary.
The National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) said that they oppose Agoda’s alleged “unfair and irresponsible retrenchment practices”.
In a joint statement posted on Facebook by NTUC chief Ng Chee Meng, the unions added that they were “appalled” by the alleged clause, which is “irresponsible and regrettable” if true.
NTUC and SISEU also said that they were “deeply concerned” about the matter, with NTUC calling on Agoda to clarify its position.
MOM was urged to investigate the allegations as it “deeply affects Agoda’s workers’ right to protection at the workplace”, with the unions adding:
Workers must never be made to feel threatened or silenced when exercising their rights.
In the post, Mr Ng also said that he was “deeply disappointed by the way Agoda is allegedly handling its retrenchment exercise”.
Adding to the disapproving statements was the Amalgamated Union of Public Employees (AUPE), which expressed concern over how Agoda is handling the retrenchment exercise in a Facebook post on Thursday (18 Sept).
If the threat outlined in the clause is true, this “should never have happened” to any worker, “especially during this difficult time of retrenchment”, it said, adding:
AUPE stands in solidarity with the affected workers, and we echo NTUC and SISEU’s call for Agoda to do right for its employees and urge MOM to thoroughly investigate this matter.
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Featured image adapted from Careers at Agoda and MS News.