A full-spectrum, practice-oriented guide to what employers may (and may not) do when placing workers on “floating,” “no-work, no-pay,” “temporary lay-off,” or “off-detail” status; how long it can last; what documents to issue; what pay and benefits apply; what happens after the limit; and the remedies employees can use—across ordinary businesses and the security-guard/contracting set-ups.

1) The legal idea in one page

Floating status = temporary suspension of work (and of the employment relationship’s primary obligation to provide work/pay) for bona fide business reasons, without ending the employment.
It is lawful only if:
1. There is a real, good-faith reason (e.g., lack of assignment, temporary shutdown, force majeure, client pull-out, seasonal lull, repairs/renovation);
2. The employer follows fair notice and documentation (written notice stating the reason, scope, and target duration; good-faith efforts to reassign/recall); and
3. The total period does not exceed six (6) months.
If no recall by the 6th month, the law treats it as constructive dismissal unless the employer validly terminates for an authorized cause (e.g., retrenchment/closure) with 30-day notice to the employee and DOLE and with separation pay.

2) The six-month cap—and what “counts” against it

The six-month ceiling is the general rule for temporary lay-off/bonafide suspension of work.
Counting: Start from the actual effectivity of the floating status stated in the written notice. Non-continuous suspensions (e.g., on-off months or rotating off-duty) aggregate toward the cap if they arise from the same business cause.
Extensions: As a default, no unilateral extensions beyond six months. Any longer suspension needs a different lawful basis (e.g., a properly processed authorized-cause termination) or a specific, time-bound regulatory relief (rare and typically tied to extraordinary events).
Security-guard “off-detail”: Lack of posting/assignment for > 6 months is generally constructive dismissal. The agency must reassign the guard or terminate for authorized cause with separation pay—not keep the guard in limbo.

3) When floating status is not allowed

Disguised dismissal/union-busting. Using floating status to target unionists/complainants or to evade regularization is unlawful.
Punitive suspension without due process. “Floating” is not a substitute for disciplinary suspension.
Permanent business contraction. If demand has permanently fallen or a client is lost with no realistic near-term replacement, the proper path is authorized-cause termination (redundancy/retrenchment/closure), not indefinite floating.
Repeated cycles to dodge the cap. Serial 5-month floats separated by thin intervals can be struck down as bad faith.

4) Who may be placed on floating status—and typical triggers

Regular employees (rank-and-file to managerial) across industries, if the cause is bona fide and temporary.
Project/seasonal employees: only when the lull is a genuine temporary suspension within the project/season; otherwise, the end of season/project rules apply.
Contractors/security agencies/BPO vendors: common triggers are client pull-out, account downsizing, change of service provider, or end of project with pending redeployment.

5) Pay and benefits while floating

Wages: Typically no work, no pay during a valid temporary lay-off, unless the employer voluntarily grants allowances or a CBA says otherwise.
13th-month pay: Based on basic salary actually earned within the calendar year. If an employee had no earnings during the floating months, those months won’t add to the 13th-month base.
Leave credits: Employer may allow conversion/use of paid leaves to cushion the period, but cannot force negative leave balances.
HMO/insurance: The employer may continue coverage as a gesture or per CBA/policy. If coverage lapses, inform employees in writing with options (e.g., self-pay).
SSS/PhilHealth/HDMF: If no wages are paid, employers need not remit employee contributions for that month; however, keeping employer-side remittances or enabling voluntary contributions is encouraged (communicate clearly).
Tenure accrual: Employment continues; company service is generally unbroken unless the relationship is later terminated.

6) Paperwork employers should issue (and why it matters)

Notice of Temporary Lay-off / Floating Status
- Contents: business reason; affected employees/units; start date; expected duration (not more than 6 months); status of pay/benefits; recall mechanism; contact channel; statement that employment is not terminated.
- Serve personally or to the employee’s last known address and official e-mail; keep proof of service.
Redeployment/Recall Notices (as openings appear)
- Offer reasonable assignments commensurate with the employee’s job classification (or with consent if different). Keep logs of offers/declines.
Conversion to Authorized-Cause Termination (if no recall by Month 6)
- At least 30 days before the effective termination: serve written notices to the employee and DOLE stating the authorized cause (retrenchment/closure/redundancy) and pay separation pay at the correct rate (see §7).
- Failure to do this typically results in illegal dismissal exposure.

7) If floating crosses the limit: what happens next

Employer options by or before Month 6:
- Recall and restore to work without loss of tenure; or
- Terminate for authorized cause with proper 30-day dual notice (employee & DOLE) and separation pay as follows:
  - Redundancy / installation of labor-saving devices: At least 1 month pay per year of service (or higher if company/CBA policy).
  - Retrenchment to prevent losses / closure not due to serious losses: At least ½ month pay per year of service, or 1 month pay, whichever is higher.
Failing to do either: The employee may sue for constructive dismissal, with remedies of reinstatement (or separation pay in lieu) plus full backwages from the date the dismissal is deemed to have occurred (often reckoned at the expiry of the 6-month period).

8) Special industry notes

A) Security agencies (“off-detail”)

“Off-detail” is tolerated only as a temporary measure. An agency must actively seek reassignment and may not leave a guard unpaid and unassigned beyond 6 months.
Non-redeployment past the cap—especially without documented client loss efforts—amounts to constructive dismissal. The agency cannot shift the burden indefinitely to the guard.

B) Contracting/subcontracting, BPO/KPO

Loss or downsizing of a client account does not erase the employer’s obligations to its employees. Contractors must redeploy to another account or process authorized-cause termination with separation pay.

C) Seasonal/manufacturing/hospitality

Genuine seasonal closures can justify floating for the off-season, but repeated excess-length suspensions or use of floating to avoid regularization will be struck down.

9) Employee remedies and timelines

Internal escalation first (optional but useful): Send a written demand to recall or regularize status, citing the approaching 6-month mark.
SENA (Single-Entry Approach) with DOLE: free, quick conciliation; preserves relationships and yields settlement agreements or referrals.
NLRC complaint for illegal/constructive dismissal:
- When: any time if the floating is in bad faith, or upon reaching the 6-month cap without recall/authorized-cause processing.
- Relief: reinstatement without loss of seniority rights and full backwages, or separation pay in lieu if reinstatement is no longer viable; plus attorney’s fees and damages where warranted.
Discrimination/retaliation angle: If floating targets union officers/complainants, add ULP (unfair labor practice) charges.

10) Practical playbooks

A) Employer—lawful floating status (step-by-step)

Assess cause (document client letters, sales data, closure orders, repairs schedules).
Exhaust alternatives (reassign, rotate, reduce hours by agreement) before resorting to full floating.
Issue written notice (clear reason, start, end not later than 6 months, benefits status).
Maintain contact; send periodic updates and actual offers of redeployment as they arise.
By Month 5: Decide—recall or serve 30-day authorized-cause notices and prepare separation pay.
Close out properly: pay all dues; release COE; file DOLE reports.

B) Employee—protect yourself

Keep the paper trail (notice dates, e-mails, offers you accepted).
Acknowledge availability for any suitable assignment (put it in writing).
Follow up near Month 5; demand recall or a definite plan.
If no action by Month 6: file SENA, then NLRC for constructive dismissal if unresolved.
Mitigate (you may take temporary work elsewhere); this is not abandonment of your original job.

11) FAQs

Q: Can we cut salary or demote upon recall? A: Not unilaterally. Substantial changes (pay, rank, worksite) without valid cause and consent may be constructive dismissal. Offer equivalent work; if truly different, obtain written consent.

Q: Do we need to notify DOLE for floating status itself? A: While the statute’s 30-day DOLE notice is specific to authorized-cause terminations, many employers prudently inform DOLE of temporary suspensions/partial closures. Regardless, you must give clear written notice to employees, and you must notify DOLE if you later terminate for authorized causes.

Q: May we rotate employees (reduced workdays) instead of full floating? A: Yes, if business-necessity is genuine and the arrangement is transparent, time-bound, and nondiscriminatory. Keep written advisories and avoid dropping below statutory wage/benefit compliance.

Q: Does floating pause seniority? A: Tenure continues; the employment tie is not severed. Seniority and length-of-service computations normally include the floating period.

Q: Can an employee refuse redeployment to a different site or shift? A: If redeployment is reasonable and within the bounds of the employment contract/CBA, refusal may justify disciplinary action. If the redeployment is substantially inferior or unreasonable, the employee may insist on a suitable assignment.

12) Clean, ready-to-use templates (adapt to your facts)

12.1 Employer Notice of Temporary Lay-off / Floating Status

Subject: Temporary Suspension of Work (Floating Status) – [Employee/Unit] Due to [specific business reason], we are temporarily suspending work for [name] effective [date]. This is a temporary lay-off and does not terminate employment. We target resumption on/before [date ≤ +6 months], and will issue recall notices as assignments arise. During this period: [state pay/benefits, contact person, recall mechanism].

12.2 Employee Availability & Recall Demand (pre-Month 6)

I confirm my availability for immediate redeployment to any reasonable, equivalent assignment. As the six-month period from [start date] approaches, please advise whether I will be recalled or processed for authorized-cause separation with statutory pay.

12.3 Employer Notice of Authorized-Cause Termination (post-floating)

Pursuant to [authorized cause: retrenchment/closure/redundancy], this serves as 30-day notice that your employment will end on [date]. You will receive separation pay of [rate & computation] and all accrued benefits. A report is being filed with DOLE.

13) Red flags that sink cases

No written notice starting the floating, or vague “wait at home” instructions.
Zero redeployment efforts (no offers, no logs).
Letting the status run past six months without recall or authorized-cause processing.
Targeted floating (unionists/complainants) or cycling short floats to avoid the cap.
Unilateral downgrades on recall.

14) Bottom line

Floating status is a narrow, time-bound tool, not a parking lot for employees.
Employers: Document the business need, notify properly, recall early, or terminate lawfully with pay before Month 6.
Employees: Track the dates, state your availability, and assert your rights—if nothing happens by Month 6, you can treat it as constructive dismissal and claim the full package of remedies.