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Agoda layoffs: NTUC & employees union ‘appalled,’ MOM launches investigation

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NTUC, SISEU offer assistance to affected employees, MOM to investigate Agoda allegations

The National Trades Union Congress (NTUC) and Singapore Industrial and Services Employees’ Union (SISEU) are “appalled” at allegations that Agoda warned retrenched employees not to report issues to trade unions or government authorities.

The online travel agency has cut staff across its global operations, with about 50 roles affected in Singapore. According to documents circulating online, employees were allegedly threatened against reporting the layoffs, with the risk of losing their severance entitlements. Workers were also reportedly warned against submitting mediation requests or pursuing claims or proceedings related to their employment or termination.

The two unions have expressed their dismay in a joint statement on Wednesday (Sep 17), stating that the move, if true, is “irresponsible and regrettable.”

The Singapore Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) have also confirmed they are investigating the case.

NTUC and SISEU’s response

In their joint statement, NTUC and SISEU emphasised that if the allegations are true, Agoda’s actions would deny employees access to grievance handling and dispute resolution support at a time when they are most vulnerable.

“Workers must never be made to feel threatened or silenced when exercising their rights,” the unions said. “It also runs counter to the principles of fair and progressive employment practices expected of all responsible employers in Singapore.”

NTUC and SISEU both oppose the online travel agency’s move, and will support affected workers. While Agoda is not unionised, its workers who are members of NTUC’s affiliated union, SISEU, will be assisted.

“NTUC and SISEU stand ready to offer assistance and resources to help our members and workers transition to new job opportunities and provide financial support, if needed,” said the unions.

“This includes connecting them to the Labour Movement’s network, such as NTUC’s e2i (Employment and Employability Institute).”

Affected members and workers are also encouraged to contact SISEU for assistance via email at siseu@ntuc.org.sg or by phone at 6220 3345 (during working hours).

MOM is looking into Agoda’s “inappropriate” severance agreement

In a separate statement, MOM has confirmed that it will investigate the layoffs together with TAFEP.

The ministry said it takes the allegations seriously, noting that any provisions in employment or severance agreements that discourage or prevent employees from approaching authorities are “inappropriate.”

It is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities for all situations and this runs counter to the spirit of fair and responsible employment practices.

MOM added that it will not hesitate to take action where necessary.

Agoda has refuted allegations

Amid investigations by MOM and concerns raised by NTUC and SISEU, Agoda has denied the allegations, stating that it has not threatened employees over reporting layoffs or accessing support from unions or government authorities.

The company’s spokesperson told Vulcan Post on Sep 17 that it “remains committed to retaining a strong local presence in Singapore and continues to follow relevant local laws.”

“Impacted employees were given every support throughout the transition process in line with industry standards. During this time employees were free to seek alternative legal options or engage with local authorities if they so wished. We categorically refute the allegation that any warnings were issued.”

The company added that it is not able to comment further on individual settlement agreements to respect employee privacy.

Also Read: Agoda lays off 50 staff in S’pore, denies threatening severance if cases reported to MOM or unions

Featured Image Credit: Ayden

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