Retrenched employees claim threats over severance benefits as MOM investigates Agoda’s practices

Agoda’s retrenchment of around 50 Singapore-based employees has sparked controversy, with claims that staff were warned against reporting the layoffs to authorities.

Retrenchment Hits Singapore Office

On Aug. 4, Agoda held a virtual town hall announcing the termination of all Customer Experience Group (CEG) roles in Singapore, Shanghai, and Budapest. Around 50 employees in Singapore were affected, including regional managers and customer service specialists. The company cited “cost” concerns and “recruitment challenges” as reasons for the move.

Shift To Overseas Operations

Sources noted that Agoda had previously set up new customer support sites in India, China, and Egypt. Job postings on its career platform further showed that the firm continues to hire for customer service roles in countries such as Japan, South Korea, and Thailand, consolidating its workforce where operational costs are lower.

Severance Conditions Raise Alarm

Employees were offered one month’s severance pay per year of service. However, documents seen by media outlets revealed strict conditions: staff were told they would lose their severance if they reported the matter to authorities such as the Ministry of Manpower (MOM) or the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). Those who pursued mediation or claims would also have to indemnify Agoda for any resulting costs, including legal fees and damages.

MOM And Union Response

MOM said it is reviewing the matter with TAFEP, stressing that such contractual terms run counter to fair employment practices. “It is inappropriate for employers to include provisions that discourage or inhibit employees from approaching the authorities,” an MOM spokesperson said on Sept. 17.

NTUC secretary-general Ng Chee Meng and SISEU executive secretary Desmond Tan also expressed deep concern, calling the alleged conditions “irresponsible and regrettable.” They assured affected workers that assistance would be provided, including financial aid and career transition support.

Agoda’s Position

In response to media queries, Agoda said the retrenchment exercise was part of its global “operational efficiency” drive and that impacted employees received support “in line with industry standards.” The company also stated that staff were free to seek legal options or approach authorities if they wished, though it declined to comment on individual settlement agreements.

Broader Implications

The controversy highlights growing tensions around retrenchment practices in Singapore, particularly as companies restructure in response to rising manpower costs. For both Singaporean and Indonesian observers, the case underscores the importance of strong employment protections and transparent corporate practices in an increasingly globalized workforce.

Agoda’s retrenchment case is a reminder of the fragile balance between corporate efficiency and workers’ rights. As MOM and unions monitor developments, the outcome could shape future employment standards in Singapore and set a precedent for how multinational firms handle layoffs across Southeast Asia.

Sources: Mothership (2025) , Straits Times (2025)

Keywords: Agoda Retrenchment, Singapore Employees, MOM Investigation, NTUC Statement, Employment Practices, Workforce Rights