Legal Implications of Prolonged Floating Status in the Philippines

Dear Attorney,

I have been placed on floating status by the BPO company where I work for more than six months now. I am concerned about whether this extended period of floating status is allowed under Philippine labor law and what steps I can take to protect my employment rights. Can you provide legal insights on this situation?

Insights

The concept of "floating status" or temporary suspension of work is recognized under Philippine labor law, particularly for businesses like Business Process Outsourcing (BPO) companies that may experience temporary declines in client demand. However, the law sets clear limits to prevent employers from abusing this status.

Under the Labor Code of the Philippines and related jurisprudence, floating status can be implemented under certain conditions, such as a bona fide suspension of operations or business activities. This suspension must be temporary, and employees must not be required to perform work during this period.

The key issue in your case appears to be the duration of the floating status. According to labor standards, the maximum allowable period for floating status is six months. After this period, if the employer has not recalled you for work, the law deems that a constructive dismissal has occurred. Constructive dismissal is a situation where an employer’s actions effectively force an employee to resign, even if the employer has not expressly terminated their employment.

In your case, having been on floating status for more than six months, the company may now be in violation of this six-month limit. This could give rise to a case for illegal dismissal, entitling you to seek remedies such as:

1. Reinstatement to your former position, without loss of seniority rights;
2. Back wages, covering the period during which you were improperly placed on floating status beyond the allowable six months; and
3. Damages for any other losses that may have arisen from this situation.

It is important to formally communicate with your employer regarding your status and to document any relevant exchanges, as this may serve as evidence if you pursue legal action. If the company does not provide a resolution, you may file a complaint with the National Labor Relations Commission (NLRC) for illegal dismissal and other related claims.

You may also want to consider consulting directly with a labor lawyer to assist with evaluating the specifics of your case and help guide you through the process of filing a complaint, should you decide to proceed.