Startups

Former Pollen employees were asked to sign an ‘NDA masked as a severance agreement’

Comment

Pollen, the U.K.-headquartered travel and events marketplace, describes its company culture as built on principles of “freedom” and openness, including a well-publicised pay transparency policy. However, that doesn’t appear to always be the case with regards to the treatment of recently departing employees.

When the word-of-mouth marketing company laid off 69 staff from its various U.S. and Canada entities last month, axed staff were asked to sign a severance agreement that included a clause prohibiting them from disclosing the content of the agreement, including to current and former employees.

In addition, multiple sources tell TechCrunch the severance contracts feature a broader non-disparagement clause. Such clauses are typically used to prohibit current or former employees from talking about a company or its staff and leadership in a way that is harmful to the business or individuals associated with the business.

“It was basically an NDA masked as a severance agreement,” said one former Pollen employee, who asked not to be identified. “They dangled our last pay check in front of us so that we felt pressure to give away our rights, and they paired that with an abrupt cut off from the company. I was told I was laid off and then promptly removed from all correspondence within a 24-hour period.”

Pollen co-founder and CEO Callum Negus-Fancey doesn’t dispute the existence of either clause, but says both are a “standard inclusion” in severance agreements and were drafted by external employment lawyers. “However, we’re going to discuss internally if it’s necessary to continue to include these kinds of clauses given the company’s focus on transparency,” he added. “We strive to adopt best practices throughout Pollen.”

However, according to HR experts TechCrunch has spoken to, including one HR professional with years of experience working for large tech companies in the U.S., such confidentiality and non-disparagement clauses aren’t typically employed in more general redundancy situations. Instead, they are more commonly used where a severance contract is agreed after a dispute between a departing employee and the company, or when a company is concerned there could be adverse publicity.

“For a company that strives itself on transparency, there is actually a deep undertone of political rhetoric about what should or should not be talked about,” a former Pollen employee tells TechCrunch.

Meanwhile, Pollen, or rather JusCollege, one of its many brands and entities, did attract negative media headlines earlier this year as it grappled with the emerging coronavirus situation. Parents of students who canceled a spring break to Mexico in mid-March told NBC News that they weren’t offered refunds despite concerns over the virus and had been reassured that the trip was safe. On the 12th of March, two days before departure, the World Health Organisation (WHO) declared a pandemic. Subsequently, according to the University of Texas, dozens of students that went on the trip tested positive for COVID-19 when they returned to the U.S.

In response, a JusCollege spokesperson told the Independent newspaper: “We take the safety of our customers very seriously and are working with public health authorities to assist where we can. JusCollege always follows U.S. government regulations and guidance from the state department when making travel recommendations, and Mexico was not under a federal travel advisory at the time the trip departed… Our thoughts are with the students who are ill and the healthcare providers and public health officials who are working to mitigate the impact of COVID-19.”

In a call, and followed up over email, Negus-Fancey said that Pollen wasn’t in a position to cancel the spring break trip and offer full refunds at the time because the U.S. government was yet to advise travel restrictions to Mexico. He also explained that the company acts as a “curator and distributor” connecting customers with suppliers, such as hotels, airlines and nightclubs, who set their own refund policies. “The money doesn’t sit with us, it sits with our partners. We take a commission in the middle,” he said.

Adds the Pollen CEO: “All customers who didn’t want to travel were refunded at a minimum whatever was received back from clients (hotels, airlines or other providers) or they were given a 100% credit to a future trip. The team worked tirelessly over weeks to achieve this outcome for customers as it was at the discretion of clients given there were no travel warnings in place at the time about flying to Mexico. We were materially out of pocket as a result of this effort because despite the circumstances, we took a long-term view to do right by customers and as a result paid out in many circumstances where clients had not refunded us.”

Separately, following layoffs in North America and 34 furloughs in the U.K., TechCrunch has learned that Pollen has put another 56 members of staff on furlough, as the travel and events sector continues to be hit hard by the coronavirus crisis. They comprise 45 in the U.S., seven in the U.K. and four in Canada.

Confirming the latest round of furloughs, Negus-Fancey says employees are being supported by each country’s various government furlough schemes and that Pollen U.S. furloughed employees were given “over a weeks notice on full pay and we are covering their medical insurance whilst they are on furlough leave.”

Founded in 2014 and previously called Verve, Pollen operates in the influencer or “word-of-mouth” marketing space. The marketplace lets friends or “members” discover and book travel, events and other experiences — and in turn helps promoters use word-of-mouth recommendations to sell tickets. Pollen’s backers include Northzone, Sienna Capital, Draper Esprit, Backed and Kindred.

More TechCrunch

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

7 hours ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?