Rights and Remedies in the Philippines

Overview

Yes—employees placed on “floating status” (also called off-detail, temporary lay-off, or forced leave) can pursue remedies. The right path depends on what you’re complaining about:

Labor standards issues (unpaid wages, 13th month pay, service incentive leave conversions, wage deductions, underpayment, non-remittance issues tied to wage records, etc.) are typically raised with DOLE (often through inspection/enforcement or assistance mechanisms).
Termination-related disputes (illegal dismissal, constructive dismissal, illegal suspension, reinstatement, backwages, damages) are generally filed with the NLRC (Labor Arbiter)—usually after undergoing SEnA (Single Entry Approach) mediation.

Floating status is not automatically illegal. It becomes legally risky when it is not justified, not temporary, not in good faith, or exceeds the lawful period.

1) What “Floating Status” Means (Legally)

In Philippine labor practice, “floating status” commonly refers to a situation where the employer temporarily does not give the employee work assignments due to a bona fide business reason (e.g., reduced operations, loss of clients, suspension of a department, lack of posting for security guards, etc.), without severing the employment relationship.

The usual legal anchor is the Labor Code provision on bona fide suspension of business operations (often cited as the rule that a temporary suspension cannot exceed six (6) months). During a valid temporary layoff:

The employee remains an employee.
The employer is not necessarily required to pay wages if no work is performed (“no work, no pay”), unless a contract, CBA, company policy, or special arrangement provides otherwise.
The arrangement must be temporary and for a legitimate business reason.

The 6-month rule (practical rule of thumb)

A floating status that lasts beyond 6 months (or becomes indefinite) is commonly treated as a form of termination/constructive dismissal, unless the employee is properly recalled to work or lawfully separated with required due process and, when applicable, separation pay.

2) When Floating Status Is Lawful

Floating status is more likely to be considered valid when all of these are present:

Genuine business necessity
- Actual lack of work/posting, temporary suspension of operations, sudden business downturn, loss of client account, etc.
Temporary and time-bounded
- The employer has a clear plan to recall the employee within the lawful period (commonly within 6 months).
Good faith
- It is not used to punish the employee, defeat tenure, bust union activity, or force resignation.
Non-discriminatory application
- Not selectively imposed based on personal reasons, retaliation, or protected activities.
Clear communication
- Written notice isn’t always strictly spelled out for every scenario, but in practice it is crucial evidence of legitimacy: reason, effectivity date, and expected recall.

3) Red Flags: When Floating Status Becomes Illegal or Actionable

Floating status can become the basis of a complaint when:

A. It exceeds the lawful temporary period (commonly 6 months)

If the employee is left “floating” past the allowable period and not recalled, it can be treated as constructive dismissal or illegal termination.

B. It is indefinite or repeatedly extended to avoid regularization/tenure

“Rolling” floating status without genuine recall plans can be attacked as bad faith.

C. It is a disguised dismissal or retaliation

If the real intent is to push the employee out, reduce headcount without due process, or punish the employee for complaints/union activity, it may be constructive dismissal, possibly with damages.

D. The employer prevents recall or imposes unreasonable recall conditions

Examples: requiring resignation, demanding a waiver, forcing transfer to a far location without basis, or using recall as leverage.

E. There are accompanying labor standards violations

Even if floating status is arguably valid, it can still be actionable if the employer commits violations such as:

Nonpayment/underpayment of final pay (for separated employees)
Nonpayment of 13th month pay due
Illegal deductions
Noncompliance with wage orders (where applicable)
Failure to keep/pay legally mandated benefits due under policy/CBA/contract

4) Can You File a Complaint with DOLE While on Floating Status?

Yes—but choose the correct forum for the correct issue.

DOLE is generally appropriate when your complaint is about:

Unpaid/underpaid wages and wage-related benefits that are enforceable as labor standards
13th month pay nonpayment/underpayment
Service incentive leave or other statutory benefits (where applicable)
Illegal deductions
Record-keeping and compliance issues
General labor standards compliance (often addressed via DOLE enforcement/inspection mechanisms)

But if you are seeking:

Reinstatement
A declaration of illegal dismissal / constructive dismissal
Backwages due to illegal termination
Damages arising from dismissal
Separation pay due to an illegal termination theory

…these are usually NLRC (Labor Arbiter) matters.

SEnA: the practical starting point

In many employment disputes, the first stop is SEnA (Single Entry Approach), a DOLE-administered mandatory conciliation-mediation mechanism to encourage settlement. If unresolved, the case is referred to the proper adjudicatory body (often NLRC for dismissal disputes).

5) What Claims Commonly Arise from Floating Status?

Depending on facts, an employee may pursue one or more of the following:

A. Constructive dismissal / illegal dismissal (NLRC)

If floating status is:

beyond the legal period,
indefinite,
imposed in bad faith, or
effectively forces the employee out,

you may file an illegal dismissal complaint and seek:

Reinstatement (or separation pay in lieu, in some situations),
Full backwages from dismissal up to actual reinstatement/finality,
Damages and attorney’s fees (when justified).

B. Money claims (DOLE or NLRC depending on nature)

Examples:

unpaid wages/benefits already due,
13th month pay,
holiday pay, overtime pay, premium pay (if provable and applicable),
SIL conversions (if applicable),
wage differentials.

Where to file can depend on the nature of the money claim and whether it is linked to dismissal. When money claims are intertwined with termination issues, they are commonly consolidated with the NLRC case.

C. Illegal suspension of operations / unfair labor practice (special cases)

If the floating status is used to interfere with union rights or protected concerted activities, other remedies may apply.

6) Employer Duties During Floating Status

While wages may not accrue when no work is performed (absent a contrary contract/CBA/policy), employers still have important obligations:

Maintain the employment relationship
- The employee remains on the roster.
Recall within the lawful period
- Otherwise, exposure to illegal dismissal claims increases.
Act in good faith and document the basis
- Loss of client, reduced operations, etc.
Observe lawful separation procedures if termination becomes necessary
- If separation is due to authorized causes (redundancy, retrenchment, closure not due to serious losses, etc.), employers must comply with:
  - due process requirements (including notice requirements), and
  - separation pay where the law requires it.
Pay legally due benefits
- For example, 13th month pay is generally due if the employee earned wages during the year (pro-rated if not employed/paid for the full year).

7) Practical Guide: What Should an Employee Do?

Step 1: Get everything in writing

Ask for a written memo/email stating:

date you were placed on floating status,
reason,
expected duration,
recall process.

Step 2: Track the timeline

Mark the start date. The longer it stretches, the stronger your argument can become—especially near/after the 6-month point.

Step 3: Send a formal demand / request for recall

A polite written request helps build a record:

willingness to work,
request for posting/assignment,
objection to indefinite floating status.

Step 4: Decide your remedy path

If the issue is unpaid statutory benefits → DOLE/SEnA is often appropriate.
If the issue is effectively termination/constructive dismissal → SEnA then NLRC (Labor Arbiter).

Step 5: Prepare evidence

Helpful documents:

employment contract and job orders,
company memos on floating status,
payslips, payroll records, 13th month computations,
attendance/assignment history,
client termination notices (if you can access them),
emails/messages showing you asked to be recalled,
proof of selective or retaliatory treatment (if any).

8) Key Legal Theories Employees Use

Constructive dismissal

Argued when the employer’s act makes continued employment impossible, unreasonable, or unlikely—such as indefinite floating status or floating beyond the lawful period without recall and without proper termination process.

Authorized causes vs. “floating”

Employers sometimes use floating status when what they really need is an authorized-cause separation (retrenchment, redundancy, closure, etc.). If they avoid notices and separation pay by keeping employees floating indefinitely, that can be challenged.

Good faith vs. bad faith

Courts and labor tribunals weigh:

genuineness of business reverses,
consistency of the employer’s actions,
whether some employees were recalled while others were targeted,
whether the employer offered reasonable assignments.

9) Frequently Asked Questions

“If I’m floating, am I dismissed?”

Not automatically. Floating status is supposed to be temporary. But if it becomes indefinite or exceeds the lawful period, it can be treated as a dismissal in effect.

“Do I get paid while floating?”

Often, no work = no pay, unless your contract/CBA/company policy provides otherwise. However, you may still be entitled to certain benefits that accrue based on prior earnings (e.g., prorated 13th month pay).

“Can I be forced to resign because I’m floating?”

No. A resignation obtained through pressure or as a condition for recall can be attacked as involuntary and may support a constructive dismissal claim.

“Where do I file—DOLE or NLRC?”

For labor standards money claims (statutory benefits, underpayment) → DOLE mechanisms are commonly used.
For illegal dismissal/constructive dismissal and reinstatement → NLRC (Labor Arbiter), typically after SEnA.

“What if my employer recalls me after I file?”

If you’re recalled within a lawful, good-faith period, that can weaken a dismissal theory—but may not erase money claims or prior violations. If recall is used to moot the case while the pattern repeats, that context matters.

10) Bottom Line

Employees on floating status can pursue remedies. The key points are:

Floating status must be legitimate, temporary, and in good faith.
Floating status that becomes indefinite or exceeds the lawful period is commonly actionable as constructive dismissal/illegal dismissal.
You may file through DOLE for appropriate labor standards issues and SEnA mediation.
For dismissal-related relief like reinstatement and backwages, the proper forum is usually the NLRC (Labor Arbiter).

This article is for general legal information in the Philippine labor context and is not a substitute for advice on your specific facts. If you share the timeline (start date of floating status, any memos, and whether you were recalled or given postings), I can help you map the most appropriate complaint theory and forum based on those details.