Agoda apologises for severance terms discouraging staff fro seeking union or government help
Travel platform Agoda has apologised after severance agreements for retrenched staff were found to contain clauses discouraging employees from contacting unions or government agencies, following engagement with MOM, NTUC and TAFEP.
- Agoda admits severance terms discouraging union or agency contact were inappropriate.
- The company apologised and pledged support for tripartite employment principles.
- NTUC confirmed retrenchment benefits met industry standards, with added worker support.
Agoda has apologised for including “inappropriate” clauses in its severance agreements which discouraged retrenched employees from approaching unions, statutory bodies, or government agencies for assistance.
The apology followed discussions between the company and the Ministry of Manpower (MOM), the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), the National Trades Union Congress (NTUC), and the Singapore Industrial and Services Employees’ Union (SISEU).
In a statement issued on 19 September 2025, Agoda acknowledged that the clauses were not appropriate.
The company admitted they ran counter to Singapore’s principles of fair and responsible employment practices.
Agoda stated: “We apologise for any language in our agreements that gave the impression employees could not approach government agencies, statutory bodies or trade unions for additional support and advice. This is their statutory right.”
The company also expressed regret over the “negative impact” the matter may have caused some employees.
It pledged to continue supporting the spirit of tripartite employment practices, which underpin Singapore’s labour framework.
Unions and agencies welcome Agoda’s response
NTUC secretary-general Ng Chee Meng and SISEU executive secretary Desmond Tan welcomed Agoda’s clarification and apology.
They noted that the firm had engaged transparently with the labour movement and government agencies to address the issue promptly.
According to NTUC, the union confirmed that retrenchment benefits provided to affected workers were aligned with industry guidelines. This ensured employees were not disadvantaged in terms of financial compensation.
Ng and Tan added that Agoda had committed to working with NTUC and SISEU to provide additional support for workers undergoing the transition. Such support may include career guidance, training opportunities, or redeployment assistance.
Details of retrenchment and severance terms
On 17 September, an Agoda spokesperson said the layoffs were part of the company’s “continuous improvement drive to enhance operational efficiency” and that affected staff were supported during the transition.
“During this time, employees were free to seek alternative legal options or engage with local authorities if they so wished,” the spokesperson said.
Earlier that day, The Online Citizen reported claims from a former employee that jobs across the customer experience group (CEG) had been cut.
The decision was first conveyed during a virtual town hall on 4 August. About 50 employees in Singapore were affected.
Roles eliminated included customer specialists and regional managers overseeing multilingual teams supporting travellers.
Impacted employees were offered one month of severance pay per year of service, with garden leave until 3 September.
However, the severance agreement shared with media contained clauses restricting legal recourse.
The terms barred staff from filing claims, pursuing legal action, or contacting statutory bodies such as the MOM, the Tripartite Alliance for Dispute Management (TADM) and TAFEP.
The agreement also required staff to remove all references to Agoda from LinkedIn and other online platforms.
Breaches would result in repayment of severance sums and legal fees, with the company entitled to recover costs as debts.
Emphasis on fair employment practices
Following review by MOM and TAFEP, Agoda withdrew the disputed clauses and issued an apology.
MOM reiterated that employees have the right to approach government agencies, statutory boards or unions for advice and assistance, even after signing a severance agreement.
NTUC and SISEU said the incident underscores the importance of fair and transparent retrenchment practices, as well as the role of unions in safeguarding workers’ rights.
They added that constructive engagement between employers, unions and government remains central to maintaining trust within Singapore’s labour ecosystem.
Agoda, a subsidiary of Booking Holdings, employs more than 6,000 people worldwide, including a significant base in Singapore.
The company stated it will review its human resource practices to ensure all future agreements align fully with Singapore’s employment standards.
