Agoda layoffs: Severance deals should not deter staff from reaching authorities, says Tan See Leng

Dr Tan said the Government is mindful not to “over-regulate” and be intrusive when it comes to private agreements between employers and workers, even as it empathises with employees’ concerns over inappropriate clauses, such as those stopping them from reaching out to the authorities for help and guidance.

“MOM does not proactively monitor severance agreements, as such contracts between firms and workers are private and confidential. However, if we receive complaints on the severance agreements, we will investigate the matter,” he said.

In September, affected Agoda staff were told not to report the retrenchment to MOM, other government agencies and trade unions, according to a severance document that was circulated on social media. The document, which stated that those who did report it would have their severance benefits revoked, has drawn widespread public criticism.

Dr Tan noted that the tripartite partners were made aware of the inappropriate clause only through media coverage.

Employers are not required to submit the mandatory retrenchment notification before retrenching workers, he said, but the National Trades Union Congress has proposed that the Government consider requiring advance notification to better assist affected workers.

to discourage employees from seeking help from the relevant authorities and unions after retrenchment.

Dr Tan added that MOM works with tripartite partners to encourage employers to conduct their retrenchment exercises fairly and responsibly. “This includes providing sufficient time for affected workers to consider the severance agreement offered so that they can seek their own independent legal advice if necessary.”

There are also clear and accessible channels for employees to seek redress where required, he added.

“Should workers encounter unfair or illegal clauses in their severance agreements, they may approach MOM or Tripartite Alliance for Fair and Progressive Employment Practices. MOM takes a serious view of such clauses and will not hesitate to take action against errant employers where necessary,” he said.

Reports of sudden layoffs affecting several businesses have surfaced recently, including home-grown confectionery chain Twelve Cupcakes, which retrenched about 80 staff after the company was placed under provisional liquidation in late October. MOM is

for non-payment of salaries and other potential breaches.

Art investment firm Art Works

, leaving about 15 staff with unpaid salaries, CNA reported on Nov 4. The news report said several artists whose works are worth tens of thousands of dollars have yet to receive payment from the firm, while affected employees are seeking guidance on their employment and wage entitlements from the relevant authorities.