This article explains what “floating status” (temporary layoff/off-detail) means in the Philippines and what employees are—and are not—entitled to in terms of wages and benefits. It also covers timelines, industry nuances (e.g., security services), documentation, and remedies.

1) What “Floating Status” Is

Floating status (also called temporary layoff, off-detail, or temporary suspension of employment) occurs when the employer temporarily suspends work because there is no available assignment or operations are bona fide suspended.
The Labor Code allows a temporary suspension up to six (6) months. After this cap, the employer must either recall the employee to work or permanently terminate employment using an authorized cause (e.g., redundancy, retrenchment, closure) with corresponding separation pay.

Key principles

The employment tie is not severed during floating status.
Floating status is not disciplinary (unlike preventive suspension).
The doctrine is rooted in management prerogative tempered by good faith, reasonableness, and statutory limits.

2) Baseline Pay Rule: “No Work, No Pay”

The general rule is no work, no pay while on floating status. Because there is no actual work rendered, basic wages are not due for the floating period.
This principle presumes the temporary layoff is lawful, bona fide, and within the six-month limit.

Important distinctions

Preventive suspension (disciplinary, pending investigation) that exceeds 30 days must be with pay beyond day 30.
Floating status is non-disciplinary; the 30-day preventive suspension rule does not apply. The six-month cap is the operative limit.

3) The Six-Month Cap and Its Consequences

Maximum duration: Up to six (6) months.
Before the lapse: Employer should recall the employee, reassign, or end employment for an authorized cause with proper notices and separation pay (if applicable).
If the cap is breached: Prolonged off-detail typically ripens into constructive dismissal or necessitates treatment as an authorized-cause termination. Consequences may include reinstatement, backwages (if dismissal is found illegal), or separation pay in lieu of reinstatement.

4) What Employees Are (and Aren’t) Paid on Floating Status

A. Basic Wage

Not payable during the floating period under the no-work-no-pay rule.

B. Allowances and Premiums

Productivity/attendance allowances, overtime, night shift differential, premium pay, holiday premium: Not payable absent work performed.
Fixed monthly allowances (e.g., fixed transport/communications) depend on contract/CBA/company policy. If the allowance is truly fixed and unconditional, the employer’s policy controls; most are tied to workdays and thus not payable without work.

C. 13th Month Pay

Computed based on basic salary actually earned within the calendar year.
No earnings during floating = no accrual for those months. If the employee worked part of the year, the 13th month is pro-rated on actual basic pay received.

D. Service Incentive Leave (SIL)

The right to 5 days SIL per year depends on coverage and exemptions. Whether time spent on bona fide suspension counts toward accrual can vary in practice.
Conservative approach: SIL accrual relates to service during the year; months with no work and no pay commonly do not earn leave credits unless the CBA/contract provides otherwise.

E. Government-Mandated Benefits & Contributions

SSS, PhilHealth, Pag-IBIG contributions are tied to compensation. In months with no pay, no regular contributions are usually posted.
Coverage continuity: Employment remains subsisting, but no remittances may be due in zero-pay months. Employees may explore voluntary contributions if eligible.
EC (Employees’ Compensation) coverage is statutory; reporting typically follows SSS posting—practical coverage during zero-pay months may be affected.

F. Company-Granted Benefits (HMO, group life, meal/transport, internet)

Contract/CBA/policy-driven. Employers may maintain HMO or other benefits during floating status as a business choice (often to preserve workforce goodwill), but law does not require payment of these benefits absent work unless policy or agreement says otherwise.

5) Industry Nuances

A. Security and Manpower Services

Off-detail arises when a client contract ends and the guard/worker awaits reassignment.
Agencies must act in good faith to re-deploy within six months.
Some CBAs, agency policies, or DOLE issuances may impose stricter obligations (e.g., reporting, efforts to reassign, shuttle postings). Pay during off-detail is generally none, unless a CBA/policy grants an allowance.

B. Project-Based/Seasonal Setups

Between projects or seasons, employers may temporarily suspend work. If the lull exceeds six months without valid business basis or proper termination route, risks of constructive dismissal arise.

C. Force Majeure/Calamity or Government Restrictions

Temporary closures may justify placing employees on floating status. The six-month cap still applies, subject to any special legislation or DOLE advisories that may, for limited periods, relax timelines or encourage alternative work arrangements.

6) Employer Obligations During Floating Status

Bona fide basis: There must be a real business need (e.g., lack of assignment, temporary shutdown).
Written notice to employees: State the reason, expected duration, and recall/placement plan. Serve promptly and keep proof of service.
Regulatory reporting: As a best practice, report temporary suspension to the DOLE Regional Office (especially for shutdowns/temporary closures).
Duration tracking: Calendar the six months. If recall is not feasible, initiate authorized-cause termination before lapse, observing 30-day notice to employees and DOLE, and pay separation pay where applicable.
Recall and reassignment: Use fair criteria; notify employees in writing. Maintain contact channels.

7) Employee Rights and Options

Ask for specifics in writing: reason, estimated duration, and recall plan.
Stay reachable: confirm current address/email/phone; promptly respond to recall notices.
Benefits check: clarify HMO and other benefits continuity, and whether voluntary contributions (SSS/PhilHealth/Pag-IBIG) are advisable.
If six months elapse without recall or valid termination route: consult counsel about constructive dismissal and potential backwages, reinstatement or separation pay and damages.
If recalled: report as directed (unjustified refusal may create exposure to abandonment or insubordination issues).

8) Comparison Table

Topic	Floating Status	Preventive Suspension
Nature	Non-disciplinary; business/operational	Disciplinary; pending investigation
Pay	No (general rule)	No up to 30 days; Yes beyond 30th day
Cap	6 months	30 days (extendable with pay)
End State	Recall or authorized-cause termination with separation pay (if applicable)	Decision: exonerate (reinstate with pay if extended) or dismiss (with due process)
Notices	Written notice to employee; DOLE report for temporary closures recommended	Twin notices if leading to dismissal; separate notice of preventive suspension

9) Tax/Payroll Pointers

No wages = no withholding for floating months.
13th month is based on actual basic pay earned (pro-rated).
Separation pay (if later terminated for authorized cause) follows tax rules applicable to involuntary separations; coordinate with payroll/accounting for current exemptions and documentation.

10) Documentation Toolkit (Templates You Can Adapt)

A) Notice of Temporary Layoff / Floating Status

Subject: Notice of Temporary Suspension of Work (Floating Status) Dear [Employee Name], Due to [specific business reason: e.g., client contract expiration/temporary closure], we are placing you on temporary floating status effective [date]. We anticipate this arrangement to last no longer than six (6) months, during which we will exert efforts to reassign/recall you as soon as practicable. During this period, the no work, no pay principle applies. Should circumstances change, you will be promptly notified. Please keep your contact details updated. Sincerely, [Authorized Officer]

B) Recall / Reassignment Notice

Subject: Recall from Floating Status / New Assignment Dear [Employee Name], You are hereby recalled from floating status effective [date] and assigned to [post/client/location] with the following schedule [details]. Please report to [person/office] on [date/time]. Failure to report without valid reason may subject you to administrative action. Sincerely, [Authorized Officer]

C) Notice of Authorized-Cause Termination (If Recall Not Feasible)

Subject: 30-Day Notice of Termination Due to [Redundancy/Retrenchment/Closure] Dear [Employee Name], Despite efforts to resume deployment, business conditions require us to end your employment effective [date, at least 30 days from notice] due to [authorized cause]. You will receive separation pay in accordance with law and company policy, along with your final pay and Certificate of Employment. Sincerely, [Authorized Officer]

11) Compliance Checklists

For Employers

Real business reason for floating status is documented.
Written notice to affected employees is served.
DOLE reporting considered (especially for temporary closures).
Six-month calendar tracked; escalation plan decided by Month 5.
Efforts to reassign recorded (emails to clients, redeployment rosters).
Recall notices issued promptly when posts open.
If recall not feasible, authorized-cause route followed with 30-day dual notice and separation pay.

For Employees

Keep contact details current; monitor messages.
Request written explanation and duration if unclear.
Clarify benefits (HMO, etc.) during floating months.
Consider voluntary SSS/PhilHealth/Pag-IBIG contributions if eligible.
If 6 months pass without recall or proper termination, seek legal advice.

12) Quick Answers (FAQ)

Q1: Do I get my salary while on floating status? No, under the no work, no pay rule—unless a CBA/contract grants pay/allowances despite no work.

Q2: How long can I be on floating status? Up to six months. After that, the employer must recall you or terminate using an authorized cause with separation pay (if applicable).

Q3: Do I still get 13th month? Only based on wages actually earned within the year. Months with zero pay do not add to 13th month.

Q4: Will my HMO continue? Only if the company chooses or the CBA/contract requires it.

Q5: What if I’m not recalled after six months? You may claim constructive dismissal or insist on treatment as authorized-cause termination with separation pay and other remedies.

Bottom Line

Pay during floating status: generally none due to no work, no pay.
Duration: strictly six months maximum.
After the cap: recall or authorized-cause termination with separation pay as applicable.
Protections: good faith, reasonableness, documented efforts to reassign, and adherence to notice requirements safeguard both parties.