SINGAPORE: The Ministry of Manpower (MOM) is investigating retrenchment terms issued by online travel agency Agoda to laid-off Singapore-based employees, following reports that severance agreements included clauses preventing them from seeking assistance from government agencies or unions.
In a statement on 17 September 2025, MOM said it takes a “serious view” of such clauses, stating: “It is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities for all situations.”
The ministry added that such practices may breach fair employment norms, and confirmed it is working with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) to review the matter.
“Where necessary, we will not hesitate to take action,” it said.
Agoda: Employees were free to engage authorities
In response to queries from The Online Citizen, Agoda stated on 18 September that the retrenchments formed part of a broader operational restructuring.
“In line with Agoda’s continuous improvement drive to enhance operational efficiency, we have phased out customer support roles in our offices in Budapest, Shanghai, and Singapore while creating new positions in other geographic locations,” the company said.
Agoda added that it “remains committed to retaining a strong local presence in Singapore” and assured that all impacted staff received “support throughout the transition process in line with industry standards.”
The company also rejected the claim that employees were restricted from seeking help, stating:
“During this time, employees were free to seek alternative legal options or engage with local authorities if they so wished.”
Agoda declined to comment on individual severance agreements, citing respect for employee privacy.
Alleged clauses in severance agreements
According to a retrenched employee who spoke to TOC, approximately 50 employees from Agoda’s Singapore-based Customer Experience Group (CEG) were informed of their retrenchment during a closed-door virtual town hall on 4 August 2025.
Staff in Shanghai and Budapest were similarly affected.
The meeting reportedly disabled chat and microphone functions, limiting staff interaction.
Impacted workers were offered one month of severance pay for each year of service and placed on garden leave until 3 September.
A copy of the severance agreement, seen by TOC, appeared to prohibit workers from filing complaints or contacting authorities such as MOM, TAFEP, or unions. It further warned that breach of the clause could result in forfeiture of severance pay and legal costs.
Employees were also instructed to remove references to Agoda from LinkedIn and other public platforms.
Unions criticise alleged restrictions
The National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) issued a joint statement condemning the reported clauses as “irresponsible and regrettable.”
“It goes against a fundamental right of every worker – the right to seek redress when they face workplace issues,” they said.
While Agoda is not a unionised employer, SISEU confirmed that some affected staff are union members.
It is offering career coaching, job-matching, and financial support through NTUC’s Employment and Employability Institute (e2i).
Affected individuals are encouraged to reach out to SISEU via email or phone.
Operational strategy and local workforce shifts
The layoffs follow Agoda’s expansion of customer support operations into cities with lower operational costs, including Gurgaon (India), Foshan (China), and Cairo (Egypt).
Although management previously stated these new centres would not replace existing operations, the timing of the retrenchments has raised concern among employees.
An internal source told TOC that the Singapore CEG team was originally intended to fulfil local workforce requirements, which supported the company’s ability to hire foreign professionals in engineering and tech roles.
su thresholds may have impacted this approach, contributing to Agoda’s decision to scale down operations in Singapore.
Expenditure questioned amid layoffs
Despite citing cost concerns as a factor for the retrenchments, Agoda is preparing to relocate its Bangkok headquarters to the high-end One Bangkok development.
According to the same internal source, Agoda’s CEO stated during a town hall that the company would “spare no expenses for the new office.”
This has prompted questions about prioritisation of expenditure, particularly as retrenched employees were informed of cost-cutting needs.
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