Tan See Leng: Severance Must Not Deter Staff Whistleblowing

Online travel agency Agoda announced layoffs in May 2024 as part of an organizational restructuring and effort to streamline operations. The decision led to concerns among affected employees, particularly regarding the terms of their severance packages.

Employees, predominantly in Singapore, expressed dissatisfaction with the severance deals, contrasting them with previous layoff rounds in 2020 and 2022, which they perceived as more favorable. A significant point of contention revolves around confidentiality clauses, often referred to as non-disclosure agreements (NDAs), included in the severance agreements. Employees are concerned about potential legal repercussions if they sign these clauses.

Several employees reportedly sought advice from the Tripartite Alliance for Dispute Management (TADM) in Singapore to understand their rights and options. In response to the concerns, Agoda issued a statement affirming that its severance package is "fair and equitable" and fully compliant with all local laws and regulations. The company also stated that it is offering outplacement support to help affected staff transition to new employment. Agoda is a subsidiary of Booking Holdings, which has reportedly experienced a three-year long streak of profitability.

Key Points

• Layoffs announced in May 2024.
• Previous layoff rounds occurred in 2020 and 2022.
• Booking Holdings, Agoda’s parent company, has experienced a three-year long streak of profitability.

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