Agoda axes 50 Singapore staff; denies it warned affected staff against reporting to government agencies
The alleged warning has drawn flak from MOM and unions
[SINGAPORE] Online travel agency Agoda has cut staff across its operations, including about 50 in Singapore.
Sources told The Business Times on Wednesday (Sep 17) that the Singapore-headquartered company held a closed-door virtual town hall on the retrenchment on Aug 4 with its customer experience group (CEG) employees in Singapore, Shanghai and Budapest.
The management told these employees that all CEG roles in the three locations would be eliminated. The official reasons provided were “cost” issues and “recruitment challenges”.
Regional managers and employees in customer service were affected.
In response to queries from BT, an Agoda spokesperson confirmed the group has “phased out customer support roles in our offices in Budapest, Shanghai and Singapore”, in line with its drive to enhance operational efficiency.
A section of the severance document seen by BT stated that any reports of the matter to government agencies, statutory bodies and trade unions such as the Ministry of Manpower (MOM) or the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) would result in individuals “ceasing to be entitled to the severance” benefits.
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But the Agoda spokesperson said the company “categorically refutes the allegation that any warnings were issued”.
It said affected employees were “given every support throughout the transition process” and that “during this time, employees were free to seek alternative legal options or engage with local authorities if they so wished”.
The document also says that the severance sum will be reported to the Inland Revenue Authority of Singapore (IRAS), and the Central Provident Fund (CPF) Board for Singapore citizens and permanent residents. The individuals would be “solely responsible for obtaining written confirmation from IRAS and/or CPF that such payment is not subject to Singapore income tax.
In the event taxes were payable, the retrenched workers would be “solely responsible for the liability arising” and compensate the company for any and all taxes, interest and penalties which may be imposed on the company.
Agoda said it remains committed to retaining a strong local presence in Singapore and continues to follow relevant local laws.
In a statement on Wednesday (Sep 17) night, MOM said 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,” it added.
“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,” said the ministry. “Where necessary, we will not hesitate to take action.”
In a joint statement, the National Trades Union Congress (NTUC) and Singapore Industrial and Services Employees’ Union (SISEU) said they were “appalled” at Agoda’s alleged warning to its retrenched workers via their severance agreements.
NTUC called on Agoda to clarify its position, and urged MOM to investigate the allegation against Agoda as it “deeply affects Agoda’s workers’ right to protection at the workplace”.
The severance document also stated that those affected by the layoff who attempt to make a claim against Agoda would indemnify costs to the company as a consequence of such action.
This would include, but not be limited to, legal costs, compensation and damages orders.
The company said it is not able to comment further on individual settlement agreements to respect employee privacy.
New S Pass quotas
A source told BT he believes tweaks in S Pass quotas may have also contributed to the decision to scale down operations in Singapore.
New S Pass applications submitted to MOM from Sep 1, 2025, are subject to the new qualifying salary of S$3,300.
As for renewals, S Pass holders whose passes are expiring from Sep 1, 2025, are subject to the old qualifying salary of S$3,150. Those with passes expiring from Sep 1, 2026, will be subject to the new qualifying salary of S$3,300, MOM’s website indicates.
About a year ago, Agoda set up new CEG sites in Gurugram (India), Foshan (China) and Cairo (Egypt), which have lower operating costs than Singapore.
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