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SINGAPORE – Severance agreements should never include clauses that discourage or inhibit employees from approaching the authorities under any circumstances, Manpower Minister Tan See Leng said in a written parliamentary reply on Nov 5.
He was responding to questions from Non-Constituency MP Andre Low regarding travel booking platform
Agoda’s recent
retrenchment exercise
, which affected about 50 employees.
Dr Tan said that besides the Agoda case, his ministry has not received any related complaints over the past three years.
Mr Low had asked about the number of complaints the Ministry of Manpower (MOM) had received over the last three years regarding severance agreements that contain clauses discouraging staff from approaching the authorities or unions.
He also asked whether there are proactive monitoring or existing audit mechanisms to prevent the inclusion of clauses that undermine a worker’s right to seek redress in severance agreements.
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.
Agoda has since apologised and admitted it was inappropriate
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
investigating the company
for non-payment of salaries and other potential breaches.
Art investment firm Art Works
has also gone into liquidation
, 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.
Singapore ParliamentRetrenchmentMinistry of ManpowerNTUCEmployment
