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

Jasper Health, a cancer care platform startup, laid off a substantial part of its workforce, TechCrunch has learned.

General Catalyst-backed Jasper Health lays off staff

Live Nation says its Ticketmaster subsidiary was hacked. A hacker claims to be selling 560 million customer records.

Live Nation confirms Ticketmaster was hacked, says personal information stolen in data breach

Featured Article

Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

An autonomous pod. A solid-state battery-powered sports car. An electric pickup truck. A convertible grand tourer EV with up to 600 miles of range. A “fully connected mobility device” for young urban innovators to be built by Foxconn and priced under $30,000. The next Popemobile. Over the past eight years, famed vehicle designer Henrik Fisker…

11 hours ago
Inside EV startup Fisker’s collapse: how the company crumbled under its founders’ whims

Late Friday afternoon, a time window companies usually reserve for unflattering disclosures, AI startup Hugging Face said that its security team earlier this week detected “unauthorized access” to Spaces, Hugging…

Hugging Face says it detected ‘unauthorized access’ to its AI model hosting platform

Featured Article

Hacked, leaked, exposed: Why you should never use stalkerware apps

Using stalkerware is creepy, unethical, potentially illegal, and puts your data and that of your loved ones in danger.

12 hours ago
Hacked, leaked, exposed: Why you should never use stalkerware apps

The design brief was simple: each grind and dry cycle had to be completed before breakfast. Here’s how Mill made it happen.

Mill’s redesigned food waste bin really is faster and quieter than before

Google is embarrassed about its AI Overviews, too. After a deluge of dunks and memes over the past week, which cracked on the poor quality and outright misinformation that arose…

Google admits its AI Overviews need work, but we’re all helping it beta test

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. In…

Startups Weekly: Musk raises $6B for AI and the fintech dominoes are falling

The product, which ZeroMark calls a “fire control system,” has two components: a small computer that has sensors, like lidar and electro-optical, and a motorized buttstock.

a16z-backed ZeroMark wants to give soldiers guns that don’t miss against drones

The RAW Dating App aims to shake up the dating scheme by shedding the fake, TikTok-ified, heavily filtered photos and replacing them with a more genuine, unvarnished experience. The app…

Pitch Deck Teardown: RAW Dating App’s $3M angel deck

Yes, we’re calling it “ThreadsDeck” now. At least that’s the tag many are using to describe the new user interface for Instagram’s X competitor, Threads, which resembles the column-based format…

‘ThreadsDeck’ arrived just in time for the Trump verdict

Japanese crypto exchange DMM Bitcoin confirmed on Friday that it had been the victim of a hack resulting in the theft of 4,502.9 bitcoin, or about $305 million.  According to…

Hackers steal $305M from DMM Bitcoin crypto exchange

This is not a drill! Today marks the final day to secure your early-bird tickets for TechCrunch Disrupt 2024 at a significantly reduced rate. At midnight tonight, May 31, ticket…

Disrupt 2024 early-bird prices end at midnight

Instagram is testing a way for creators to experiment with reels without committing to having them displayed on their profiles, giving the social network a possible edge over TikTok and…

Instagram tests ‘trial reels’ that don’t display to a creator’s followers

U.S. federal regulators have requested more information from Zoox, Amazon’s self-driving unit, as part of an investigation into rear-end crash risks posed by unexpected braking. The National Highway Traffic Safety…

Feds tell Zoox to send more info about autonomous vehicles suddenly braking

You thought the hottest rap battle of the summer was between Kendrick Lamar and Drake. You were wrong. It’s between Canva and an enterprise CIO. At its Canva Create event…

Canva’s rap battle is part of a long legacy of Silicon Valley cringe

Voice cloning startup ElevenLabs introduced a new tool for users to generate sound effects through prompts today after announcing the project back in February.

ElevenLabs debuts AI-powered tool to generate sound effects

We caught up with Antler founder and CEO Magnus Grimeland about the startup scene in Asia, the current tech startup trends in the region and investment approaches during the rise…

VC firm Antler’s CEO says Asia presents ‘biggest opportunity’ in the world for growth

Temu is to face Europe’s strictest rules after being designated as a “very large online platform” under the Digital Services Act (DSA).

Chinese e-commerce marketplace Temu faces stricter EU rules as a ‘very large online platform’

Meta has been banned from launching features on Facebook and Instagram that would have collected data on voters in Spain using the social networks ahead of next month’s European Elections.…

Spain bans Meta from launching election features on Facebook, Instagram over privacy fears

Stripe, the world’s most valuable fintech startup, said on Friday that it will temporarily move to an invite-only model for new account sign-ups in India, calling the move “a tough…

Stripe curbs its India ambitions over regulatory situation

The 2024 election is likely to be the first in which faked audio and video of candidates is a serious factor. As campaigns warm up, voters should be aware: voice…

Voice cloning of political figures is still easy as pie

When Alex Ewing was a kid growing up in Purcell, Oklahoma, he knew how close he was to home based on which billboards he could see out the car window.…

OneScreen.ai brings startup ads to billboards and NYC’s subway

SpaceX’s massive Starship rocket could take to the skies for the fourth time on June 5, with the primary objective of evaluating the second stage’s reusable heat shield as the…

SpaceX sent Starship to orbit — the next launch will try to bring it back

Eric Lefkofsky knows the public listing rodeo well and is about to enter it for a fourth time. The serial entrepreneur, whose net worth is estimated at nearly $4 billion,…

Billionaire Groupon founder Eric Lefkofsky is back with another IPO: AI health tech Tempus

TechCrunch Disrupt showcases cutting-edge technology and innovation, and this year’s edition will not disappoint. Among thousands of insightful breakout session submissions for this year’s Audience Choice program, five breakout sessions…

You’ve spoken! Meet the Disrupt 2024 breakout session audience choice winners

Check Point is the latest security vendor to fix a vulnerability in its technology, which it sells to companies to protect their networks.

Zero-day flaw in Check Point VPNs is ‘extremely easy’ to exploit

Though Spotify never shared official numbers, it’s likely that Car Thing underperformed or was just not worth continued investment in today’s tighter economic market.

Spotify offers Car Thing refunds as it faces lawsuit over bricking the streaming device

The studies, by researchers at MIT, Ben-Gurion University, Cambridge and Northeastern, were independently conducted but complement each other well.

Misinformation works, and a handful of social ‘supersharers’ sent 80% of it in 2020

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Okay, okay…

Tesla shareholder sweepstakes and EV layoffs hit Lucid and Fisker