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 the clauses were not appropriate.
The company admitted that 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.
NTUC secretary-general Ng Chee Meng and SISEU executive secretary Desmond Tan welcomed Agoda’s response.
They noted the firm had engaged transparently with the labour movement and government agencies on the matter.
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.
Severance packages and restrictions
On 17 Sept, a spokesperson said the layoff was part of the company’s “continuous improvement drive to enhance operational efficiency” and insisted 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.”
Earlier the same day, The Online Citizen reported claims from a former employee that jobs across the customer experience group (CEG) were cut.
The decision was first conveyed during a virtual town hall on 4 Aug. About 50 employees in Singapore were affected.
Roles eliminated included customer specialists and regional managers, covering multilingual teams supporting travellers.
Impacted employees were offered one month of severance pay per year of service, with garden leave until 3 Sept. 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 TADM and the 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.
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