Floating Status Notice Requirement in the Philippines A 2025 all-in-one legal guide for employers, workers and practitioners

1 | What “floating status” means

“Floating” (also called temporary lay-off, off-detail or bona-fide suspension of business) occurs when management parks an employee with no work and no pay while it tries to fix a business exigency. It is grounded on Article 301 of the Labor Code (formerly Art. 286), which allows a suspension of employment for up to six (6) consecutive months without breaking the employment tie.(Philippine Law Firm, RESPICIO & CO.)

2 | Why notice matters

Because floating is not a disciplinary act but an authorized cost-saving measure, due-process takes the form of advance written notice rather than the twin-notice rule used for just-cause dismissals.

Recipient	Statutory / DOLE rule	Timing	Minimum contents
Employee(s)	Supreme Court in Airborne Maintenance v. Egos and Art. 301	≥ 30 days before effectivity (or “as soon as practicable” during officially-declared calamities)	Reason; date range; six-month cap; right to recall or separation pay
DOLE Field/Regional Office	Department Order 147-15 (Rule I-A) & Labor Advisory 17-20/RKS Form 5	File the Establishment Report (RKS Form 5) within 30 days before effectivity (pre-pandemic) or “as soon as possible” for temporary closure/FWA under LA 17-A/17-B	Same facts plus roster of affected workers

(www.slideshare.net, Scribd, P&L Law Firm | Philippines)

Good practice. Most audit findings (and court rulings) turn on paperwork. Keep the signed memo to each employee, the RKS-5 with DOLE’s receiving stamp or e-mail acknowledgment, and evidence of the business reason (client pull-out, machine breakdown, etc.).(RESPICIO & CO.)

3 | Special rules for manpower/service contractors and security agencies

DOLE Department Order 174-17 caps floating at three (3) months for employees supplied by legitimate contractors. Failure to deploy within that window entitles the worker to either redeployment elsewhere or authorized-cause separation pay.(Philippine Law Firm)
Security guards follow the same three-month ceiling because their employment is inherently “off-detail/on-detail.” Several SC cases (e.g., Loque, Hamid) treat over-extended “off-detail” as constructive dismissal.(Philippine Law Firm)

4 | The six-month outer limit and the employer’s options

By the 181st day the employer must either:

Recall/redeploy the employee under equal or better terms; or
Terminate under an authorized cause (redundancy, retrenchment, closure, disease) with:
- fresh 30-day notices to employee and DOLE; and
- separation pay per Art. 299-301 and DO 147-15.(RESPICIO & CO., www.slideshare.net)

Absent either action, the suspension “ripens” into constructive dismissal, exposing the employer to full back-wages, separation pay in lieu of reinstatement, and moral/exemplary damages.(Employment Law Project, Jur.ph)

COVID-19 footnote. DOLE D.O. 215-20 (Oct. 2020) briefly allowed one additional six-month extension if the employer filed a second RKS-5 and secured written employee consent. That grace period lapsed in 2022; the classic six-month rule is again the default.(RESPICIO & CO.)

5 | Jurisprudence snapshot (notice-centric)

Case	G.R. No. / Date	Take-away
Innodata v. Inting	211892, 6 Dec 2017	Float valid only if DOLE & worker get 30-day written notice and no vacancies exist.(Philippine Law Firm)
Airborne Security v. Egos	222748, 3 Apr 2019	One-month notice to DOLE and guard mandatory; non-compliance = illegal dismissal.(Philippine Law Firm)
Telus v. De Guzman	202676, 4 Dec 2019	Putting a cleared employee on indefinite float without notice is constructive dismissal.(Jur.ph)
PT&T v. NLRC	144130, 21 Jun 2001	Day 181 triggers back-wages; allowance during float is not required.(RESPICIO & CO.)

6 | Consequences of faulty or missing notice

Constructive dismissal claims: over-extended or bad-faith floats nearly always lose in the NLRC and Supreme Court.
Nominal damages: even if the economic ground is genuine, failing to file RKS-5 or to give written notice typically costs ₱30 000 per worker, per Agabon guidelines.(Employment Law Project)
Regulatory exposure: DOLE labor inspectors may issue compliance orders or recommend criminal prosecution for non-registration of employment changes.

7 | Employer compliance checklist (2025)

Assess necessity – document the exigency and explore flexible-work options first.
Draft the employee memo – clear reason, effectivity date, six-month cap, rights upon recall or separation.
File RKS Form 5 (Temporary Closure/FWA) – within 30 days before effectivity (or ASAP during calamities). Attach list of names.
Monitor the calendar – start counting Day 1 on the employee’s first “no-work” day.
Communicate regularly – monthly updates show good faith.
Decide before Day 181 – recall or implement authorized-cause termination with fresh notices and separation pay.(RESPICIO & CO.)

8 | Employee options

Seek redeployment – ask HR for vacancies; refusal without valid reason may weaken later claims.
Take outside work – moonlighting is generally allowed during a bona-fide float.
File DOLE inquiry (FOI/RKS check) if notice was not received. Evidence of a missing RKS-5 greatly strengthens a constructive-dismissal case.(Employment Law Project)
File NLRC complaint after Day 181, or sooner if float is a clear ruse (e.g., employer hires replacements).

9 | Key take-aways

Notice is non-negotiable. A quick e-mail to DOLE and a hard-copy memo to the worker can spell the difference between savings and six-figure damages.
Six months (or three for contractors) is a hard stop. Plan cash-flow for separation pay early.
Documentation wins cases. Courts look for the paper trail, not the employer’s after-the-fact explanations.

This article is up-to-date as of 16 May 2025 and synthesizes statutes, DOLE issuances and Supreme Court decisions. It is provided for general information only and does not constitute legal advice. For specific situations, consult competent counsel or the DOLE.