NTUC ‘appalled’ at Agoda’s severance terms; MOM raps company over bid to deny axed workers access to help

[SINGAPORE] The National Trades Union Congress (NTUC) and Singapore Industrial and Services Employees’ Union (SISEU) said on Wednesday (Sep 17) evening that they were “appalled” that Agoda had allegedly warned its retrenched workers that they would not get their severance compensation if they were to report the layoffs to government agencies.

The Singapore-headquartered travel service company had 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. About 50 staff were cut from its Singapore operations.

The severance agreement for the affected workers had a clause which stated that Agoda would immediately stop the workers’ severance payments and demand repayment of amounts already paid, should they inform any of the listed organisations about the retrenchment. These include the trade unions, government bodies, the Tripartite Alliance for Dispute Management; Tripartite Alliance for Fair and Progressive Employment Practices; and Tripartite Alliance Ltd.

“This practice, if true, is irresponsible and regrettable. NTUC and SISEU are deeply concerned that Agoda has allegedly sought to deny its workers access to grievance handling, dispute resolution and employment assistance support in this difficult period for them,’’ the joint union statement said.

NTUC calls on Agoda to clarify its position, and to do what is right for its workers immediately. “We also urge the Ministry of Manpower (MOM) to investigate this allegation against Agoda as it deeply affects Agoda’s workers’ right to protection at the workplace.”

The union reminded all companies to treat their workers with respect and dignity; and abide by employment laws and guidelines. Employers should also abide by the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, and carry out retrenchment exercises fairly and responsibly for their workers, the statement said.

SEE ALSO

Agoda axes 50 Singapore staff; denies it warned affected staff against reporting to government agencies

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

“While Agoda is not unionised, we know of Agoda workers who are members of NTUC’s affiliated union, SISEU. Our assurance to the Agoda workers is that in retrenchment exercises where there are members working in non-unionised companies, NTUC’s affiliated unions and/or associations will continue to extend assistance to our members should they be affected by the exercises,” said the joint statement by NTUC and SISEU.”

In a separate statement, MOM said it was “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.”

“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. Where necessary, we will not hesitate to take action,” it added.