Agoda layoffs: Clauses that deter workers from going to authorities ‘should not be included’

[SINGAPORE] Severance agreements should never have clauses discouraging employees from approaching the authorities, said Minister of Manpower Tan See Leng in a written parliamentary reply on Wednesday (Nov 5).

He was responding to Non-Constituency Member of Parliament Andre Low, who asked about online travel booking platform Agoda’s recent layoffs that affected about 50 employees in Singapore.

Agoda’s severance agreement reportedly included clauses that employees would not be entitled to severance benefits if they reported matters to government authorities and trade unions.

Dr Tan said that the Ministry of Manpower (MOM) does not proactively monitor severance agreements “as such contracts between firms and workers are private and confidential”, but will investigate if it receives complaints.

The government “is mindful not to over-regulate and be intrusive into private contractual agreements” between employers and workers, he noted.

But provisions that “discourage or inhibit employees from approaching the authorities should not be included under any circumstances”, he added.

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No similar complaints in past three years

MOM works with tripartite partners to encourage employers to conduct their retrenchment exercises “fairly and responsibly”, said Dr Tan.

This includes providing sufficient time for affected workers to consider the severance agreement so they can seek independent legal advice if necessary.

There are also “clear and accessible” channels for employees to seek redress where required, he added.

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Over the last three years, with the exception of Agoda’s case, MOM has not received any complaints on clauses discouraging workers from approaching the authorities or unions, said Dr Tan.

He added that workers can approach MOM or the Tripartite Alliance for Fair and Progressive Employment Practices if they encounter unfair or illegal clauses in their severance agreements.

“MOM takes a serious view of such clauses and will not hesitate to take action against errant employers where necessary,” he pointed out.

In a separate written parliamentary reply on Tuesday, Dr Tan said that MOM is reviewing the National Trades Union Congress’ (NTUC) call for employers to give advance notice of retrenchments.