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Agoda Apologizes for ‘Inappropriate’ Severance Terms, Pledges Support for Retrenched Staff

Regulatory scrutiny prompted engagement with MOM, with unions saying the firm is cooperating to assist affected workers.

Overview

  • Agoda said language in its severance agreements that discouraged approaching authorities, statutory bodies or unions was inappropriate and issued an apology.
  • MOM called the clauses inappropriate and reiterated that employers should not stop workers from seeking help from authorities or unions.
  • NTUC and SISEU said retrenchment benefits for affected staff align with industry guidelines and welcomed Agoda’s engagement.
  • The company is contacting affected employees to connect them with NTUC’s Employment and Employability Institute (e2i) support schemes.
  • Legal experts said terms that penalise use of statutory dispute channels are likely void under the Employment Claims Act, noting such broad restrictions are atypical in Singapore.