This qualitative study applies the labour market segmentation theory to examine tourism job losses through the indirect causes of pay cuts, unpaid leave and the take-up of side hustle�accepted by the employees partly from loyalty, camaraderie and empathy. Where the prolonged hardship from these measures leads to resignations, employers gain from the avoidance of termination benefits mandated by a retrenchment exercise. The losses occasioned to the worker include the non-eligibility for state-funded wage subsidy and foregone termination benefits. Through a legal analysis of COVID-19 job losses, the study posits that tourism workers� lack of rights awareness contributed to the voluntary acceptance of these lawful but detrimental strategies. © 2023 Informa UK Limited, trading as Taylor & Francis Group.