Employee Rights to Decline a Job Offer While on Floating Status

(Philippine legal perspective, updated to 30 April 2025)

1. What “floating status” means

Statutory anchor – Article 301 (formerly Art. 286) of the Labor Code. It allows an employer to suspend work or operations for up to six (6) months without severing the employment bond. During that window the employee is unpaid (the “no work, no pay” rule) but retains security of tenure. (Everything You Need to Know About Placing an Employee on ..., Everything You Need to Know About Placing an Employee on ...)
Sector-specific ceilings. For manpower/service contractors the ceiling is three (3) months under Department Order 174-17. (Everything You Need to Know About Placing an Employee on ...)
Notice duties. Employers must give written notice to both (a) the employee and (b) the DOLE Field Office within 30 days from effectivity of the floating status or redeployment. (Employment Floating Status and Reliever Positions - Respicio & Co.)
Jurisprudential guardrails. The Supreme Court insists the suspension be bona-fide, done in good faith, and strictly time-bound; otherwise it degenerates into constructive dismissal. (G.R. No. 224097 - LawPhil, [PDF] NOTICE - Supreme Court of the Philippines)

2. Employee rights while on floating status

Right	Practical effect	Legal spine
Security of tenure	Employment continues; separation requires an authorized-cause dismissal or resignation.	Art. 301; PT&T v. NLRC (2023) (G.R. No. 224097 - LawPhil)
Timely recall/redeployment	Employer must recall or place you within 6 months (3 months for contractors).	Art. 301; DO 174-17 (Everything You Need to Know About Placing an Employee on ...)
Notice & information	Written notice of floating status, expected duration, recall details.	Respicio Redeployment Notice article (2025) (Redeployment Notice in Employment - Respicio & Co. Law Firm)
Separation pay if no recall	If not returned to work on the 181st day, you may claim constructive dismissal and demand separation pay, back wages, and damages.	Ibon v. Genghis Khan (2017); Loque v. Seventh Fleet (2020) (General Return-to-Work Orders - Paulino Ungos III, G.R. No. 230005 - LawPhil)
Fair treatment pending recall	Employer cannot hire new workers for the same functions while you are floating; doing so is a “badge of bad faith.”	Innodata v. Inting (2017) (Everything You Need to Know About Placing an Employee on ...)

3. When a redeployment / job offer is valid

A recall or new post must satisfy all the following:

Substantial equivalence – no demotion in rank, diminution of pay or benefits, nor loss of security of tenure. (G.R. No. 228088 - LawPhil, G.R. No. 212082 - Supreme Court E-Library)
Good-faith business purpose – transfer dictated by genuine operational needs, not retaliation, union busting, or discrimination. (G.R. No. 228088 - LawPhil)
Reasonable location & working conditions – assignment should not impose unreasonable distance, safety hazards, or conditions that render continued employment impossible or unduly burdensome. ([PDF] ~uprem.e QI:ourt - Supreme Court of the Philippines)
Compliance with notice & timing rules – the offer must arrive within the 6-month window and respect the 30-day notice rule. (Employment Floating Status and Reliever Positions - Respicio & Co.)

4. Right to refuse: When can an employee lawfully decline the offer?

Ground for refusal	Why it is lawful	Supporting authorities
Demotion or pay cut	A redeployment that lowers rank, salary, or benefits is tantamount to constructive dismissal; you may refuse.	Deguidoy v. Santander (2019); Yangson (2018) (G.R. No. 228088 - LawPhil, G.R. No. 200170 - MARILYN R. YANGSON, PETITIONER, VS ...)
Promotion you do not want	Promotion is a “reward” an employee may reject; refusal is not insubordination.	NAFLU v. NLRC (1991); DivinaLaw note (2021) ([The right to say 'no': Not-so-common matters on promotion
Unreasonable relocation / hardship post	If the new site poses serious financial, family, health or safety burdens and the employer cannot justify it, refusal is justified.	Megaforce v. Lactao (2023); security-guard cases ([PDF] ~uprem.e QI:ourt - Supreme Court of the Philippines, G.R. No. 245422 - LawPhil)
Position inconsistent with skills / medical restrictions	Assignment to a role for which you are unqualified or medically unfit violates due process and OSH rules.	Labor Law PH transfer guide (2024) (Transfer of Employees - Labor Law PH)
Offer issued after the 6-month limit	At that point the employment tie is deemed severed by constructive dismissal; you may sue instead.	Ibon & Loque cases (General Return-to-Work Orders - Paulino Ungos III, G.R. No. 230005 - LawPhil)
Offer camouflages a contractual reset (endo)	An “offer” that converts you to fixed-term or project status circumvents security of tenure and may be rejected.	DO 174-17 rules on labor-only contracting (Everything You Need to Know About Placing an Employee on ...)

5. Consequences of declining

Scenario	Consequence	Notes
Refusal with valid ground	Employee remains in floating status; employer must find a lawful post or legally terminate with separation pay.	Constructive dismissal if no action within the remaining 6-month period.
Refusal without valid ground	May be treated as abandonment or insubordination after due process (twin-notice rule).	Employer still bears burden of proving bad-faith refusal.
Employer pressures employee to resign	Such pressure = constructive dismissal; employee may file NLRC complaint for illegal dismissal, back-wages, reinstatement or separation pay.	Supreme Court doctrine on constructive dismissal (G.R. No. 212082 - Supreme Court E-Library, Constructive Dismissal - Labor Law PH)

6. Legal remedies & practical steps

Document everything. Keep copies of the floating-status memo, redeployment offer, and your written reply.
Demand clarity. Ask the employer to specify rank, salary, work schedule, location, and start date.
Timely complaint. File a Single-Entry Approach (SEnA) request or NLRC complaint within four (4) years to preserve money claims.
Financial cushioning. If eventually dismissed, secure an SSS unemployment insurance certificate of involuntary separation from DOLE (e-cert). (Department of Labor and Employment(DOLE) - FOI)
Seek legal aid. Public Attorneys Office (PAO), DOLE regional offices, or private counsel can assist in evaluating whether refusal is legally defensible.

7. Best-practice tips

For Employees	For Employers
Respond in writing within a reasonable time, citing the specific legal ground for refusal.	Issue redeployment offers early, in writing, detailing pay, duties, and location.
Propose alternatives (e.g., work-from-home, closer branch).	Consult the employee before assigning to a distant or lower-rank post.
Track the 6-month clock; on day 181 act (demand recall or file a case).	Never exceed the 6-month cap; if no post exists, process authorized-cause termination with correct separation pay.
Keep copies of all notices and correspondence.	Serve the twin-notice requirement if you believe the refusal is un-justified.

Key take-aways

Floating status is temporary; after six (or three) months the law forces the employer to choose between recall or separation with pay. If the recall comes with a valid, equivalent post, the employee must weigh it carefully, but Philippine law protects the right to say “no” when the offer demotes, exploits, endangers, or arrives too late. Exercising that right—politely, in writing, and with clear legal footing—keeps the employee’s security of tenure intact and positions them for full redress should the employer over-reach.