SINGAPORE: The Ministry of Manpower (MOM) is taking action after reports emerged about severance agreements from Agoda that allegedly discouraged laid-off employees from contacting government agencies or unions. Around 50 customer support roles were affected by this retrenchment exercise, raising serious questions about the fairness of these agreements.
MOM’s Stance on Severance Agreements
In a statement issued on 17 September 2024, MOM expressed that it views any provision that inhibits employees from reaching out to authorities as highly inappropriate. The ministry emphasised job security and support should not be compromised by contractual clauses meant to silence workers during challenging times.
Union Reactions
The National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) have voiced strong opposition to Agoda’s alleged practices. The unions described the severance contracts as “irresponsible” and counterproductive to workers’ rights.
- NTUC and SISEU called for Agoda to clarify its severance practices.
- The unions emphasised that workers must be able to seek help without fear of losing their severance payments.
Legal Implications of Severance Clauses
Contractual terms that attempt to prevent employees from engaging with MOM or other regulatory bodies are typically unenforceable under Singapore’s Employment Claims Act (ECA). Legal experts have indicated that any clause limiting contact with such entities directly contradicts existing employment legislation and is therefore invalid.
Ben Chester Cheong, a law lecturer at Singapore University of Social Sciences (SUSS), commented that the ECA renders such restrictive clauses void, maintaining that employees retain the right to seek mediation or file claims regardless of any severance agreement terms.
Guidance for Affected Workers
Laid-off employees worried about their severance agreements are encouraged to consult with unions or legal advisors to ensure their rights are protected. Union representatives are ready to assist affected workers with job matching, career coaching, and financial support through NTUC’s Employment and Employability Institute (e2i).
Those needing immediate assistance can contact SISEU directly via email at [email protected] or by phone at 6220 3345.
The Bigger Picture
As Singapore prepares to implement the new Workplace Fairness Act (WFA) in 2025, MOM is under pressure to uphold standards of fair treatment in employment practices. The upcoming legislation aims to prevent retaliatory actions against employees reporting grievances, highlighting the need for transparency and accountability across all industries.
In a context where job security can often feel precarious, it’s crucial for workers to know their rights and to feel empowered to speak up when those rights are under threat.