Agoda says retrenched employees free to engage with S'pore authorities

Agoda employees affected by the company's retrenchment exercise were given "every support" in line with industry standards, a spokesperson for the online travel agency said.

They were also free to seek alternative legal options or engage with local authorities if they so wished.

The Singapore-headquartered travel company told Mothership that it "remains committed to retaining a strong local presence in Singapore and continues to follow local laws".

It did not elaborate on the consequences of employees' actions.

The layoffs

On Aug. 4, about 50 Agoda employees were told in a closed townhall that they would be laid off.

The affected employees worked in the Singapore office, in various customer support functions.

This was part of a larger global retrenchment exercise, which also affected roles in Shanghai and Budapest.

Meanwhile, the online travel company opened new offices in Foshan in China, Gurgaon in India, and Cairo in Egypt.

It also ramped up its Bangkok operations.

In response to queries about the Singapore layoffs, an Agoda spokesperson said this was part of a move to "enhance operational efficiency".

It was intended to consolidate Agoda's customer support teams in areas with the "strongest operational flexibility and capability", the spokesperson explained.

Employees not stopped from pursuing mediation: Agoda

After the layoffs were announced, staff were offered a severance package.

This would include one month's severance pay per year of service rendered, according to severance letters seen by Mothership.

However, employees were also warned not to report the matter to the authorities.

If they brought the matter to unions or agencies, such as the Ministry of Manpower (MOM), they would "immediately cease to be entitled to the severance", the letter said.

But the Agoda spokesperson said that "employees were free to seek alternative legal options or engage with local authorities if they so wished".

They declined to comment further on the settlement agreements, citing employee privacy concerns.

MOM, NTUC's responses

The National Trade Unions Congress (NTUC) called the condition "irresponsible" and "regrettable".

In a joint statement on Sep. 17, NTUC Secretary-General Ng Chee Meng and SISEU Executive Secretary Desmond Tan said they opposed the online travel agency's alleged practices and will assist affected workers.

MOM and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) added that they are investigating the case, and will take action if necessary.

They said:

"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."

Ng also shared NTUC's statement on his Facebook page, adding that he was "deeply disappointed" at Agoda's alleged handling of the case.

"In times of difficulty, workers must never be denied the rightful assistance and support they deserve," he wrote.

Top image from Agoda and NTUC