Agoda admits error over retrenchment clauses, vows support for affected staff

Agoda has issued a media statement, on 19 September 2025, admitting it was wrong to include clauses that deter employees from seeking help from unions, government agencies or statutory bodies.

This comes after news of severance letters with said clauses, issued during its recent global retrenchment exercise, were leaked to the press on 17 September 2025.

“We recognise that this regretfully led to a negative impact on some of our employees, and for that we apologize. We reaffirm that we are fully supportive of the spirit of the tripartite employment practices Singapore is known for,” the statement read.

Meanwhile, representatives from NTUC, the Singapore Industrial and Services Employees’ Union (SISEU), the Ministry of Manpower (MOM) and the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) have had several discussions with the management of Agoda.

They have agreed to work with the Labour Movement to support the affected workers through their transition.

In a joint statement issued on 19 September 2025, NTUC Secretary-General Ng Chee Meng and SISEU Executive Secretary Desmond Tan said: “We appreciate the management of Agoda for taking a proactive approach in engaging NTUC, SISEU and the Government, and for its transparency in sharing information regarding the exercise.

“The union has also ascertained that the retrenchment benefit provided to the affected workers are aligned with industry guidelines.”

SISEU is currently reaching out to affected members and workers to provide guidance and support to help them through this transition phase.

MOM responds

Following Agoda’s announcement, MOM has issued a second media statement acknowledging the discussions between the company, Government and Labour Movement.

An MOM spokesperson said: “This is an encouraging development and an endorsement of Singapore's strong tripartite approach, where employers, unions and the government work closely to safeguard the interests of our workers in the spirit of fair and responsible employment practices.

The ministry also reiterated that while employers can have severance agreements in their contracts, they should not prevent employees from reaching out to authorities and unions.

“Employers must uphold the spirit of fair and progressive employment practices, particularly during significant workforce changes such as retrenchments,” said MOM.

MOM added that NTUC, NTUC’s e2i (Employment and Employability Institute) and Workforce Singapore (WSG) are ready to provide job matching and career coaching services to affected workers.

Workers rights must be safeguarded

NTUC reiterated that during retrenchments, companies must ensure openness, transparency and consultation with unions and workers, and observe the guiding principles outlined in NTUC’s Fair Retrenchment Framework (24 July 2020) and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

The congress also appealed to companies to be considerate when it comes to managing excess manpower and to avoid executing such exercises during festive periods where possible.

“NTUC remains committed to safeguarding workers’ rights and enhancing their well-being. We will continue championing better wages, welfare and work prospects for our members and workers,” wrote Mr Ng and Mr Tan.

At NTUC, every worker matters. Find out how our NTUC membership can provide you with better wages, welfare and work prospects.