Last week, news broke that Agoda was retrenching employees in customer support roles as part of a global restructuring exercise. About 50 of the roles were Singapore-based.<\/p>\n\n\n\n
While retrenchments are never welcomed news, whether you are a business, employee or country, they do happen. And they happen quite often and is tracked by MOM. According to MOM\u2019s latest\u00a02Q 2025 Labour Market Report<\/a>, 3,540 employees were retrenched in the 2nd quarter of 2025.<\/p>\n\n\n\n What made this case hit the headlines is that Agoda allegedly asked employees not report the incident to any government agencies, statutory boards or trade unions, including MOM, the Tripartite Alliance for Dispute Management (TADM) and TAFEP.<\/p>\n\n\n\n Based on wordings that we\u2019ve seen online, there was also a threat that those who made reports would have their severance entitlement revoked, and for those who already received the severance payments from Agoda would have to repay the company.<\/p>\n\n\n\n Read Also: Retrenchment Benefits For Jetstar Asia\u2019s Employees After It Shuts Down<\/a><\/em><\/strong><\/p>\n\n\n\n In a\u00a0press release on 19 September<\/a>, Agoda admitted that it was \u201cinappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities\u201d.<\/p>\n\n\n\n They have since held meetings with MOM, NTUC, Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), and the Singapore Industrial and Services Employees\u2019 Union (SISEU) to discuss and address the concerns raised over our severance agreements.<\/p>\n\n\n\n However, their statement came after\u00a0NTUC had released its own statement<\/a>, on 17 September, \u201ccondemning\u201d Agoda for the way it conducted the retrenchment of 50 local employees.\u00a0<\/p>\n\n\n\n It also carried other serious language, including that NTUC was \u201cappalled\u201d that Agoda had warned affected workers against making any reports to the Government or trade unions.<\/p>\n\n\n\n Under Singapore\u2019s Employment Act, employers that have at least 10 employees must submit a Mandatory Retrenchment Notification to MOM within five working days after the employee has been notified of his retrenchment.<\/p>\n\n\n\n Clearly, Agoda was not intending for this to happen.<\/p>\n\n\n\n In NTUC\u2019s statement, they also reiterated that even employers that are downsizing their teams should abide by the terms laid out in the\u00a0TRIPARTITE ADVISORY ON MANAGING EXCESS MANPOWER AND RESPONSIBLE RETRENCHMENT<\/a>.<\/p>\n\n\n\n This includes a checklist of 10 things employers should consider:<\/p>\n\n\n\n #1 Does the business situation warrant a retrenchment? <\/em><\/p>\n\n\n\n #2 Did the company tap on government support, put in effort to reskill and deploy employees where possible, before embarking on a retrenchment exercise? <\/em><\/p>\n\n\n\n #3 Did the company implement other alternatives before embarking on a retrenchment exercise? Examples include, but are not limited to: flexible work schedule, shorter work-week, no-pay leave. <\/em><\/p>\n\n\n\n #4 Did the company use objective criteria to identify employees to be retrenched and that the criteria used do not discriminate against any employee on the basis of age, race, gender, religion, marital status and family responsibility, or disability? <\/em><\/p>\n\n\n\n #5 Did the company ensure that the proportion of local employees is not lower, after retrenchment? <\/em><\/p>\n\n\n\n #6 If company is unionised, were the selection criteria and \u25a1 Yes retrenchment benefit discussed and agreed to with the union?<\/em><\/p>\n\n\n\n #7 Did the company communicate its business situation and retrenchment plans clearly and in a sensitive manner with compassion to employees? <\/em><\/p>\n\n\n\n #8 Did the company adhere to the notice period for retrenchment in accordance with the employment contract, collective agreement, or the Employment Act? <\/em><\/p>\n\n\n\n #9 Did the company provide retrenchment benefit in accordance with Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment? (This is for the eligibility and quantum of retrenchment benefits)<\/em><\/p>\n\n\n\n #10 Did the company put in place measures to support the affected employees to move on to new jobs, e.g. engaging WSG or e2i for employment facilitation?\u00a0<\/em><\/p>\n\n\n\n Read Also: MOM Responsible Retrenchments \u2013 Guideline For Companies To Be Fair And Decent<\/a><\/em><\/strong><\/p>\n\n\n\n While Agoda\u2019s press release was an admission to the situation and carried an apology, it is a deeply concerning situation. It is quite shocking that Agoda may have thought that this was the right way to go about retrenching employees. They are in a scary situation, losing their jobs.<\/p>\n\n\n\n Firstly, this shows that such situations do happen. It is worrying if there have been other such retrenchments where employees may have been hushed. <\/p>\n\n\n\n Agoda\u2019s press statement mentioned that their retrenchment exercise ran counter to the spirit of fair and responsible employment practices in Singapore. We may be reading too much into it, but it seems strange to include \u201cSingapore\u201d in the statement.<\/p>\n\n\n\n In another part of the statement, it again stated that it is \u201cfully supportive of the spirit of the tripartite employment practices Singapore is known for\u201d. Again, Singapore is mentioned.<\/p>\n\n\n\n Singapore\u2019s strong employee\u2019s rights should not be seen as a potential issue for employers performing unfair retrenchment exercises.<\/p>\n\n\n\n It is also frightening to think that companies may be \u201csmarter\u201d with how they go about retrenching employees if they do not want the authorities informed.<\/p>\n\n\n\n Overall, the situation felt like a loss for employees, who could have been better supported. If unreported, they may not have gained financial support through the\u00a0SkillsFuture Jobseeker Support Scheme<\/a>, providing up to $6,000 in additional support for retrenched employees finding another job.<\/p>\n\n\n\n Although Agoda is not a unionised company, those retrenched are also being supported by NTUC and\u00a0Singapore Industrial and Services Employees\u2019 Union (SISEU)<\/a>. They would not have been if the retrenchment had not been known.<\/p>\n\n\n\n It was also a loss for Agoda, because of the awful PR they have generated. And a loss for Singapore? Because it has potentially been framed as having strong employment rights for employees.<\/p>\n\n\n\n\u201cCounter To The Spirit Of Fair And Responsible Employment Practices In Singapore\u201d<\/strong><\/h3>\n\n\n\n
Not Just About Fairness, It\u2019s Against The Law<\/strong><\/h3>\n\n\n\n
Lose-Lose-Lose Outcome<\/strong><\/h3>\n\n\n\n