MOM and labour groups raise concerns over Agoda's retrenchment exercise

The National Trades Union Congress (NTUC) and the Singapore Industrial and Services Employees’ Union (SISEU) have expressed strong concerns over Agoda’s retrenchment exercise, which saw 50 employees in Singapore laid off.

In a joint statement, the labour groups said they were “appalled” by allegations that Agoda asked retrenched workers to refrain from reporting their cases to trade unions, government agencies, or other organisations.

According to NTUC and SISEU, the severance agreements also warned employees against seeking mediation, filing claims, or pursuing legal action over their termination. Workers who breached these terms would risk losing their severance pay and could be asked to return any payouts already made.

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“This practice, if true, is irresponsible and regrettable. It goes against a fundamental right of every worker — the right to seek redress when they face workplace issues,” the statement said, adding that it undermines fair and progressive employment practices. NTUC secretary-general Ng Chee Meng also weighed in on Facebook, saying he was “deeply disappointed” by the way Agoda was allegedly handling its retrenchment.

“In times of difficulty, workers must never be denied the rightful assistance and support they deserve,” he said, stressing that responsible retrenchment is not just about compliance but also about “treating workers with dignity, fairness, and respect”.

He added that NTUC would continue standing firmly with workers to safeguard their welfare and ensure their voices are heard.

The unions have called on Agoda to clarify its position and urged the Ministry of Manpower (MOM) to investigate the allegations. They also reminded all companies to abide by the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

NTUC and SISEU said they stand ready to support affected Agoda workers, including those who are union members, with job-matching services, career coaching, and financial assistance through NTUC’s Employment and Employability Institute (e2i).

Separately, MOM told MARKETING-INTERACTIVE that the matter has come to its attention and that it, together with the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP), is looking into it. The ministry added that it is inappropriate for employers to include provisions that discourage or inhibit employees from approaching authorities, calling such clauses contrary to the spirit of fair and responsible employment practices.

MOM said it takes a serious view of such conduct, as it undermines trust in the employment framework and the avenues available for workers to seek support, and, where necessary, it "will not hesitate to take action".

In conversation with MARKETING-INTERACTIVE, an Agoda spokesperson responded to the layoffs, saying the move was “in line with [its] continuous improvement drive to enhance operational efficiency.” The spokesperson added that the company had phased out customer support roles in Singapore, Budapest, and Shanghai while creating new positions in other locations.

“This move is designed to consolidate our customer support teams in areas where we have the strongest operational flexibility and capability as we continue to grow our business,” the spokesperson said.

The company also stressed that it remains committed to maintaining a strong local presence in Singapore and continues to follow relevant local laws. Impacted employees were “given every support throughout the transition process in line with industry standards” and were free to pursue legal options or engage with authorities if they wished.

Agoda said it could not comment further on individual settlement agreements to respect employee privacy.

The retrenchment was first reported by The Business Times where it reported that Agoda informed staff of the cuts during a closed-door virtual town hall on 4 August with its customer experience group teams in Singapore, Shanghai, and Budapest. Management reportedly cited “cost pressures” and “recruitment challenges” as reasons for the move, which affected roles ranging from customer service specialists to regional managers.

The company had also come under scrutiny in June, when the Competition and Consumer Commission of Singapore (CCCS) flagged design features on Agoda’s website and mobile app that could mislead consumers.

One issue was the “best match” label, which implied search results were ranked purely by relevance to a consumer’s preferences, such as travel dates or guest ratings. CCCS found that Agoda’s algorithm also considered the commissions it earned, raising transparency concerns. Another was the “Agoda preferred” badge, displayed on selected properties with the note “trusted and verified” partners, without clearly disclosing that these properties paid higher commissions.

Agoda has since voluntarily provided an undertaking and cooperated with CCCS to make changes, ensuring users receive accurate and transparent information before booking accommodations.

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