Can my employer terminate my employment even if I'm in floating status?
In the context of Philippine labor law, "floating status" refers to a temporary suspension of work, often used in industries with seasonal or fluctuating demands. During this period, employees are not given work but remain employed and are expected to return to work once operations normalize. While floating status is a recognized practice, certain legal guidelines must be followed to ensure compliance with labor laws.
Legal Basis for Floating Status
The concept of floating status is not explicitly defined in the Labor Code of the Philippines but is recognized through various Department of Labor and Employment (DOLE) issuances and jurisprudence. The Supreme Court has acknowledged floating status as a legitimate management prerogative in situations where business conditions temporarily prevent the assignment of work to employees.
Conditions for Valid Floating Status
For floating status to be valid, the following conditions must typically be met:
Temporary Nature: Floating status should be temporary. According to DOLE regulations, this period should not exceed six months. After six months, the employer must either recall the employee to work or officially terminate the employment with due process.
Justifiable Reason: The employer must have a valid and justifiable reason for placing an employee on floating status. Common reasons include a temporary shutdown of operations, lack of work, or changes in the business environment.
Notice to Employees: Employers are required to notify employees in writing about their placement on floating status. This notice should detail the reason for the status and the expected duration.
Termination During Floating Status
An employer may terminate an employee on floating status under certain conditions, but they must adhere to the due process requirements mandated by Philippine labor laws. These conditions include:
Completion of Six Months: If the floating status exceeds six months, the employer must either reinstate the employee to active duty or proceed with termination, following the procedural and substantive requirements for lawful termination.
Redundancy or Closure: If the floating status is due to redundancy or closure of business, the employer can terminate the employment. However, this must be accompanied by the proper notice to DOLE and the employees, as well as the payment of separation pay as prescribed by law.
Just Causes: The employer may also terminate an employee on floating status for just causes such as serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, or commission of a crime against the employer or its representative. These causes must be substantiated with evidence, and the employee must be given a chance to defend themselves through a formal notice and hearing process.
Due Process in Termination
Due process in termination involves two essential aspects:
Substantive Due Process: This ensures that there is a lawful or just cause for the termination. The employer must prove that the grounds for termination are valid and legal.
Procedural Due Process: This requires the employer to follow the correct procedures before terminating an employee. It includes:
- Issuing a notice to the employee specifying the grounds for termination.
- Conducting a hearing or conference where the employee can defend themselves.
- Issuing a notice of decision to the employee, stating the reasons for the termination.
Conclusion
While floating status is a recognized practice in the Philippines, it must be managed within the bounds of labor laws. Employers have the right to place employees on floating status and, if necessary, terminate their employment. However, they must ensure compliance with legal requirements, particularly regarding the duration of floating status and adherence to due process. Employees who believe their termination is unjust may seek redress through DOLE or the National Labor Relations Commission (NLRC).