Agoda’s severance saga is a warning for tech employers

AGODA’S recent retrenchment of 50 employees in Singapore became a lightning rod for public and regulatory scrutiny. Not because of the layoffs themselves, but because of a single clause buried in the digital travel firm’s severance agreements.

This clause allowed Agoda to claw back severance payments if employees brought any mediation requests, claims, or proceedings against the company. Reporting any issues to government agencies or statutory bodies would also result in the same.

Singapore’s Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC) slammed the clause, saying it went against fair employment practices and workers’ rights. Agoda ended up apologising for the “inappropriate” move.