Agoda admits restricting workers’ access to unions and authorities was inappropriate, says NTUC
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Agoda retrenched about 50 employees in Singapore earlier in September.
ST PHOTO: SHINTARO TAY
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- Agoda acknowledged it was wrong to discourage employees from seeking help from unions or government agencies after retrenching 50 Singapore staff, says NTUC.
- Severance documents instructed staff not to report retrenchment to authorities like MOM or Tafep, under threat of losing benefits.
- NTUC and SISEU appreciate Agoda's engagement and have confirmed retrenchment packages are aligned with industry guidelines.
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SINGAPORE – Online travel platform Agoda has acknowledged that employers should not discourage employees from seeking help from trade unions and government agencies, said the labour movement.
In a joint statement on the evening of Sept 19, the National Trades Union Congress (NTUC) and Singapore Industrial and Services Employees’ Union (SISEU) said they have held several discussions with Agoda.
“Through the discussions... Agoda has acknowledged that it was inappropriate for employers to include provisions that discourage or inhibit employees from approaching trade unions, government agencies or statutory bodies for all situations,” they said.
In a separate statement on Sept 19, the Ministry of Manpower (MOM) said employers should not prevent their retrenched workers with genuine concerns from contacting unions and the authorities.
The statements follow Agoda’s retrenchment exercise in Singapore earlier in September
The job cuts were part of a larger global restructuring by the travel booking platform, which has its headquarters here.
In a severance document circulated on social media, affected staff were instructed not to report the retrenchment to MOM, the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep), government agencies, statutory bodies and trade unions.
Those who did would have their severance benefits revoked, according to the document, which also states that employees affected by the layoffs who attempt to make a claim against Agoda would indemnify the company for its costs incurred as a consequence of such action.
The decision has drawn widespread flak from the public, and from some politicians.
“It really adds salt to the wound when you tell your staff that they no longer have a job, and then tell them that their severance benefits would be revoked if they go to the Ministry of Manpower and Tafep,” said Jalan Besar GRC MP Shawn Loh.
Progress Singapore Party chief Leong Mun Wai said in a Facebook post it would not be enough for the Government and NTUC to express concern and investigate Agoda’s egregious conduct, and called for legally binding retrenchment benefits.
MOM said in its statement that retrenchments can be difficult and distressing for workers.
“NTUC, NTUC’s Employment and Employability Institute and Workforce Singapore stand ready to provide support to workers through our programmes including job matching and career coaching,” it said, adding that “while employers can enter into severance agreements with retrenched employees, they should not prevent the latter from reaching out to authorities and unions with genuine concerns”.
“Employers must uphold the spirit of fair and progressive employment practices, particularly during significant workforce changes such as retrenchments.”
In the joint update, NTUC and SISEU said Agoda has since engaged the unions and government agencies.
“We appreciate the management of Agoda for taking a proactive approach in engaging NTUC, SISEU and the Government, and for its transparency in sharing information regarding the exercise.”
They added that retrenchment packages were in line with market norms. “The union has also ascertained that the retrenchment benefits provided to the affected workers are aligned with industry guidelines.”
Agoda has also committed to work closely with the labour movement to support retrenched staff.
“The management of Agoda has agreed to work with the labour movement to support the affected workers through their transition,” NTUC and SISEU said.
“SISEU is reaching out to affected members and workers to provide guidance and support through this transition.”
Severance payments are not mandated by law in Singapore, but recommended under the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
The advisory specifies that employees with two years’ service or more are eligible for retrenchment benefits.
Those with under two years of service could be granted an ex gratia payment, however.
The advisory also indicates that the prevailing norm is to pay a retrenchment benefit of between two weeks’ and a month’s salary for every year of service, depending on the financial position of the company and taking into consideration the industry norm.
The norm is one month’s salary for each year of service with unionised companies where the amount of the retrenchment benefit is stipulated in the collective agreement.
