Complaints Received and Timeline of Discovery of Inappropriate Clauses within Severance Agreements by Tripartite Partners

30 Mr Low Wu Yang Andre asked the Minister for Manpower (a) in the last three years, how many complaints has the Ministry received regarding severance agreements which contain clauses discouraging staff from approaching authorities or unions; and (b) whether the Ministry will consider legislation to prohibit such coercive clauses to better protect workers' rights.

31 Mr Low Wu Yang Andre asked the Minister for Manpower in respect of the retrenchment by an online travel booking platform (a) at what stage did tripartite partners become aware of inappropriate clauses in the severance agreements; (b) whether this was through proactive monitoring or public reporting; and (c) what proactive audit mechanisms exists to prevent the inclusion of clauses that undermine a worker's right to seek redress in severance agreements.

Dr Tan See Leng: To recap, it was reported in September 2025 that Agoda had carried out a retrenchment exercise in early August 2025. The media reported that Agoda included clauses in the severance agreement which discouraged affected workers from making reports to unions and the authorities.

With regard to Agoda's severance agreement clauses, tripartite partners were made aware of them through the media. The Ministry of Manpower (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. MOM, the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP) and the National Trades Union Congress swiftly engaged Agoda following the media reports. Agoda has since publicly apologised and reached out to affected employees to clarify the intent of the clauses.

MOM understands and empathises with our workers' concerns over such inappropriate clauses. However, the Government is mindful not to over-regulate and be intrusive into private contractual agreements that are often entered into voluntarily between employers and workers. Instead, 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. Provisions that discourage or inhibit employees from approaching the authorities should not be included under any circumstances. Over the last three years, besides the Agoda case, MOM has not received any complaints regarding clauses discouraging workers from approaching the authorities or unions.

Should workers encounter unfair or illegal clauses in their severance agreements, they may approach MOM or TAFEP. MOM takes a serious view of such clauses and will not hesitate to take action against errant employers where necessary.