In response to Agoda’s recent retrenchment, the National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) have issued a joint statement on 17 September opposing Agoda’s alleged “unfair and irresponsible” retrenchment practices.
They are appalled that retrenched workers were allegedly warned, via their severance agreements, not to report their cases to trade unions, the Government or other organisations, including the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP).
The joint statement said: “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.”
According to the statement, workers were also allegedly warned against bringing any negotiation requests, claims or proceedings related to their employment or termination. The agreements allegedly stated that Agoda would immediately stop severance payments and demand repayment of amounts already paid if workers informed the listed organisations.
NTUC called on Agoda to clarify its position and do right by its workers immediately, and urged the Ministry of Manpower (MOM) to investigate the allegation.
The statement also reminded all companies to treat workers with respect and dignity, abide by employment laws and guidelines, and follow the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
NTUC and SISEU stand ready to help affected members
While Agoda is not unionised, NTUC and SISEU said they are aware of Agoda workers who are SISEU members. NTUC’s affiliated unions and associations will extend assistance to members working in companies that are not unionised.
NTUC and SISEU stand ready to help affected workers with job matching, career coaching, skills upgrading and, if needed, financial support through the Labour Movement’s network, including NTUC’s Employment and Employability Institute (e2i).
Affected members and workers who need help are encouraged to contact SISEU at siseu@ntuc.org.sg or 6220 3345 during working hours.
What Happened
In case you didn’t know, Agoda has laid off staff across several locations, including about 50 employees in Singapore.
The cuts were conveyed at a closed-door virtual town hall on Aug 4 to its customer experience group in Singapore, Shanghai and Budapest.
Management told staff that all customer experience roles in these three locations would be removed, citing cost pressures and recruitment challenges. Affected roles ranged from customer service specialists to regional managers.
A severance document seen by The Business Times stated that employees who report the matter to government agencies, statutory bodies or trade unions, including MOM and TAFEP, would forfeit their severance benefits.
A source said the customer experience group mainly helped meet local workforce quotas, while technology roles were hired elsewhere. The source also said the functions became obsolete after new customer experience sites were opened in Gurgaon, Foshan and Cairo, where operating costs are lower than in Singapore.
Under the Employment Act, employers with at least 10 employees who have retrenched any employee must submit a Mandatory Retrenchment Notification to MOM within five working days of informing the affected employee.
Employers with fewer than 10 employees are not required to do so, but are strongly encouraged to notify MOM.
MOM also encourages companies to help affected employees find new jobs by working with unions, the Singapore National Employers Federation (SNEF), Workforce Singapore (WSG), NTUC’s U PME Centre and NTUC’s Employment and Employability Institute, e2i.
