The hottest topic this week are Employees who are placed on Floating Status.
As we are now almost on the very 6th month since ECQ was declared and thousands of employees started their work suspension, people are now asking — What will happen to us: Will we be recalled back to work or be paid our separation pay? When will the company ask us to report? How much separation pay will we get if we are retrenched?
Here’s a compilation of the Top 15 Questions Answered About Floating Status. This is most relevant for employees whose work has been temporarily suspended since March. And to Employers who have Employees still on Floating Status from March till September. These are:
What is Floating Status?
What is the Legal Basis for Floating Status?
How Much are Floating Status Employees Paid?
What are the DOLE Paper Requirements for Putting People in Floating Status?
How Long Can Floating Status Last?
Can Employers Extend the 6 Months Floating Status because of COVID-19?
What About the DOLE Email that’s Circulating Around Saying that ECQ is not included in the 6 Month Period? What Can You Say About It?
But I Thought Putting People on Floating Status was the Same as “Forced Leave” written on the Flexible Work Arrangement, which is renewable every 6 months. Are they NOT the Same?
What Date Does I Use to Count the Start of Floating Status?
How Do We Count 6 Months?
What do I Need to Do within the 6 Month Mark of Floating Status?
What is the Proper Due Process of Retrenching the Employee?
What is the Proper Process of Asking a Staff to Report?
But I Don’t Have a Lot of Work to Give to the Staff if I ask them to Report?
What is the Consequences of Not Respecting the 6-Month Max Period for Floating Status?
What about the Industries that are Not Allowed by IATF to Operate?
1. What is Floating Status?
- Layman’s term for Temporary Retrenchment, Lay-Off, Furlough or Off-Detailing
- Management prerogative: The due process termination of employment is not necessary or required in a bona fide suspension of business operations
- You’re still employed: “A temporary displacement of employees”
- It lasts a maximum of 6 months: Complaining before the 6th month period is premature
- Suspension of work due to stopped contractual obligations with the principal for which an employee is assigned. Floating is an option if the employer cannot find any other available or similar positions.
- Burden of proof is on the employer
- JPL Marketing Promotions v. Gonzales: Employees on “floating status” who found gainful employment within the six (6) month temporary work suspension were considered to have severed their employment
2. What is the Legal Basis for Floating Status?
The legal basis is direct from Article 301 of the Labor Code (ex. Article 286)
When employment not deemed terminated.
The bona-fide suspension of the operation of a business or undertaking for a period NOT EXCEEDING SIX (6) MONTHS, or the fulfillment by the employee of a military or civic duty shall not terminate employment. In all such cases, the employer shall reinstate the employee to his former position WITHOUT loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty.
This means that the employee on floating status is still considered as an employee of the company. He is not retrenched, and hence, is not qualified to even apply for the SSS Involuntary Unemployment Benefit.
3. How Much Are Employees Paid While They are on Floating Status?
None is mandated. Anything given by the employer is EXTRA and GRACIA. So stop complaining if you only got a small allowance because it’s not enough for your family’s needs.
Source: Labor Advisory No. 1, Series of 2020
Once again, with work, with pay. No work, no pay. And no, no holiday pay too when a staff is on floating status. Kaya nga floating e. That’s temporary suspension of work.
4. What are the DOLE Paper Requirements for Putting People in Floating Status?
DOLE required the company to inform them and the employee 30 days beforehand if you’re placing a person on Floating Status, the same way as you do a permanent retrenchment.
This is clear via the IRRs of the Labor Code, which require employers to inform DOLE and the employee at least 30 days before if they’re going to permanently or temporarily retrenched an employee:
- Temporary suspension, lay-off, or temporary retrenchment, must provide the employee and the DOLE with at least 30 days notice before the start of the suspension period
- A company must comply with the one-month notice rule to both DOLE and the employee(s) prior to the suspension of its business operations, for your temporary lay-off to be valid and in accordance with our laws (Article 298).
See attached RKS Form 5 that was issued back then to see that DOLE requires 30 days notice before any displacement or adoption of any flexible work arrangement.
Because the COVID-19 pandemic was so unprecedented, came so suddenly and left everyone unprepared, DOLE adjusted the rules last March by still insisting that lay-offs still be at 30 days, but Flexible Work Benefits be more “flexible” with just a one-week notice.
On June 11, 2020, they updated the form by issuing Labor Advisory No. 17-A, Series of 2020. The latest version indicated that Temporary Closure and Flexible Work Arrangements (FWA) must be reported AS SOON AS POSSIBLE, although Permanent Retrenchment or Closure still required a 30-day advanced notice.
Reports can be filed online via https://reports.dole.gov.ph/
5. How Long Can Floating Status Last?
The law is once again very clear — 6 months maximum from the start of the employer suspending the work of the employee (Article 301 of the Labor Code).
6. Can Employers Extend the 6 Months Floating Status because of COVID-19?
So far, there is ZERO DOLE Labor Advisory, changes in Labor Code or any jurisprudence that clearly indicates that the 6 month maximum to float an employee can be done.
So unless DOLE releases a brand new Labor Advisory regarding this this week, there is no extension to the 6 months period:
G.R. No. 222748 Airborne Maintenance and Allied Services vs. Arnulfo M. Egos, April 3, 2019
G.R. No. 147002. PT & T Corp. v. National Labor Relations Commission, April 15, 2005
7. But What About the DOLE Email that’s Circulating Around Saying that ECQ is not included in the 6 Month Period? What Can You Say About It?
Are you talking about this email?
Now, Google Labor Advisory No. 104, Series of 2020…
That’s right. Labor Advisory No. 104, Series of 2020 DOES NOT EXIST.
As of today, there are only 27 Labor Advisories published by DOLE. The latest one was published last August 19, and talked about the payment of wages for the two holidays held last August 21 (Ninoy Aquino Day) and August 31 (National Heroes Day).
The closest thing to Labor Advisory No. 104, Series of 2020 which DOES NOT EXIST is Labor Advisory No. 14-A, Series of 2020. This Advisory is particularly written for Probationary Employees and specifically states that the ECQ up to the GCQ is not counted in the 6 months probationary period count of a probationary employee if unworked.
This is the exact Labor Advisory with red boxes, emphasis mine:
As emphasized repeatedly on the memo, this is only for probationary employees. For regular employees on floating period, this memo does not count.
8. But I Thought Putting People on Floating Status was the Same as “Forced Leave” written on the Flexible Work Arrangement, which is renewable every 6 months. Are they NOT the Same?
Labor Advisory No. 17, Series of 2020, Section 5 states that Wage adjustments can be renewed if voluntarily agreed to by the employee.
This is absolutely true.
However, Employees placed on Temporary Retrenchment/Floating Status is NOT the same as the Forced Leave that’s being talked about in the advisory.
Forced Leave is clearly defined by DOLE as follows — It is the use of leave credits if any for staff who goes on leave. This is different from Floating Status, which officially starts the day after the employee runs out of leave credits.
If you can see the previous versions of RKS Form 5, Temporary Retrenchment and Flexible Work Arrangement are clearly defined and separate:
So hope this clears this misunderstanding up.
9. What Date Does I Use to Count the Start of Floating Status?
Here’s the usual scenario — The company starts to float their employees from the start of ECQ last March 17. However, they never informed DOLE until they were reminded about their obligation to inform DOLE of any permanent or temporary lay-offs and flexible work arrangement last June 11, 2020. It was only then that they informed DOLE via submitting the RKS Form 5 online or via emailing the closest DOLE branch office. On the letter, they wrote that they are requesting to float their staff from June 1 to December 31, 2020.
When do they start the floating status:
a. March 17: When ECQ was announced and the work of the staff was suspended?
b. May 16: When it was MECQ and the LGU allowed the company to operate?
c. June 1: When the company actually decided to resume operations but still kept a few people on floating status?
d. June 12: When the company actually filed the RKS Form 5 to DOLE asking for permission to lay-off people from June 1 to December 31, 2020?
e. September 10: If you neglected to submit the RKS Form 5, and only after reading online that you decided to file the RKS Form 5 late (Better late than never), and inform your staff they are on floating status from September 10 to February 9.
The Correct Answer: Floating Status starts from the date the worker’s job was suspended. If you have been floating your staff from March 17 to present, the starting date of their floating status is on March 17.
10. How Do We Count 6 Months?
There’s two ways to count a 6th month notice — first is to count the actual number of days or to use 180 days. The Supreme Court has made it clear that for probationary status, 6 months is 180 days. So if we consider 180 days, the 180th day is September 12, 2020 (Next Saturday) if our forced leave started last March 17, 2020.
Source: Time and Date Calculator Many other readers would count 6 months from March 17 to September 16, 2020 (Wednesday).
You know me though… I would prefer to be conservative, especially when it comes to labor laws. So the safest calculation is September 12, 2020 as the deadline to place the staff who have been on leave since March 17 on floating status. Once you reach this point, you have to make a decision on what to do with your employees.
11. What do I Need to Do within the 6 Month Mark of Floating Status?
Employers have two valid and very legal choices:
a. Permanently retrench the employee (Option A) — In Sanoh Fulton Phils Inc. vs. Emmanuel Bernardo (GR 187214, August 14, 2013), the Supreme Court discussed the requirements for retrenchment to be valid, to wit:
“Retrenchment is reduction of personnel usually due to poor financial returns so as to cut down on costs of operations in terms of salaries and wages to prevent bankruptcy of the company. It is sometimes also referred to as down-sizing. Retrenchment is an authorized cause for termination of employment which the law accords an employer who is not making good in its operations in order to cut back on expenses for salaries and wages by laying off some employees. The purpose of retrenchment is to save a financially ailing business establishment from eventually collapsing.
b. Recall the person back to work (Option B)
12. What is the Proper Due Process of Retrenching the Employee?
Here are the steps:
- Inform DOLE AND the Employee in writing that you will be terminating his/her employment, and the last day of employment will be on the 30th day of the letter.
- Pay the Final Pay within the 30 days of her last day of employment (Labor Advisory No. 6, Series of 2020). Final pay consists of Unpaid Wages + Pro-rata 13th Month Pay + Unused Mandated Leaves + Separation Pay if any.
- Separation Pay is 1/2 Month Pay per Year of Service. A fraction of at least least six (6) months being considered as one (1) whole year. In short, that results to:
- 1 mo – 2 yrs 5 mos = 1 month pay
- 2 yrs 6 mos – 3 yrs 5 mos = 1.5 months pay
- 3 years 6 months – 4 years 5 months = 2 months pay
4 yrs 6 mos – 5 yrs 5 mos = 2.5 months pay
A gentle reminder when picking which employees to retrench — Always follow due process and do everything in good faith:
IMPORTANT: Retrenchment must be done with absolute thought and care. You cannot fire anyone just because you hate his guts. While Last-In-First-Out is commonly used, it is not the only way to evaluate who to keep and who to retrench. Make sure management has developed a Retrenchment Plan BEFORE firing the person. Never do it after the retrenchment when a staff complains to DOLE.
13. What is the Proper Process of Asking a Staff to Report?
Simply issue a Return to Work Order (RTWO) asking them to report on X Date and Time as they are not recalled back to work.
If they do not show up, you may want to gently remind them that this is a terminable offense following due process. Send the RTWO via the easy way (e.g., Couriers like JRS, LBC, Lalamove, Grab Delivery or Email) AND registered mail.
If they do not show up, please follow due process. So long as the company is following the proper health guidelines, you can compel the staff to report. All these excuses are NOT valid reasons for a staff to NOT REPORT BACK TO WORK.
- He’s angry at the boss for not receiving any ayuda from ECQ to present day.
- He’s already in the province and don’t want to take the trouble to return back to his workplace.
- There’s no convenient public transportation available to report to work day by day.
- He’s living with at-risk individuals and don’t want to expose them to COVID-19.
- His parents don’t want him to work in the fears of him getting sick. In short, “Takot ako sa buhay ko.”
- He does not think it’s worthwhile to work only 3x a week since the company is doing Flexible Work Arrangement.
- He does not want to physically report to the office and insists that he does WFH.
- He stubbornly just does not want to report to work.
- Any other reason as to why the staff refuses to return back to work.
Simply, if they don’t show up, this is a terminable offense following due process. Due process to remind everyone is following the Twin Notice Rule (Notice to Explain and Invitation to Admin Hearing if Any AND Notice of Termination). I discussed this thoroughly in my previous post, HR Talk: Employers of “Floating Employees Only Have One Week to Go:”
If you terminate them because you asked them to report and they did not show up AND followed the proper due process, there is nothing to fear. As this is a Just Cause for Termination, there is no need to pay Separation Pay. Just the final pay which is due them by law.
14. But I Don’t Have a Lot of Work to Give to the Staff if I ask them to Report?
The DOLE Bureau of Working Conditions have generously reminded us that there are multiple Flexible Work Arrangement that an employer can legally choose to preserve jobs and stay compliant. I wrote about them on my last post, HR Talk: Here are the Legal Flexible Work Arrangements Available to Employers for them to Preserve Jobs. These include the following:
Source: Labor Advisory No. 17, Series of 2020
Given the options which include asking a staff to report to work one, two or three days a week only and pay them accordingly just to save their jobs, what are we complaining about?
IMPORTANT: Please ensure that you have informed DOLE and secured the employees’ consent before instituting a Flexible Work Arrangement.
15. What is the Consequences of Not Respecting the 6-Month Notice Period?
Be careful of being found guilty of Constructive Dismissal. This is defined in G.R. No. 174208, Morales vs. Harbour Centre Port Terminal, G.R. No. 174208, January 25, 2012:
“Constructive dismissal exists where there is cessation of work because “continued employment is rendered impossible, unreasonable or unlikely, as an offer involving a demotion in rank or a diminution in pay” and other benefits. Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of the employee that it could foreclose any choice by him except to forego his continued employment.”
If found guilty, the penalties as stated in Article 279 of the Labor Code include:
- Reinstatement without loss of seniority rights
- Separation pay of one month pay for every year of service (instead of just the 1/2 month pay per year of service)
- Full back wages, inclusive of allowances and other benefits of their monetary equivalent from the time compensation was withheld up to the time of reinstatement
16. What about Industries Not Allowed by the IATF to Operate?
So far, many businessmen in the following industries have complained that the IATF is still not allowing them to operate. These include:
- Kids entertainment facilities
- Massage parlors
- Provincial buses
- Movie theatres
- Gyms and Stadiums
- Concerts and events
Here’s the question — Are you sure it is truly the government who is asking the company to remain closed, or is company management themselves who insist on remaining close para hindi malugi? There is a big difference from the two especially when it comes in judging good faith and bad faith.
A positive thought is that if you feel that your company is close to not being compliant and there’s a risk that there may be a labor case against you, a very viable option is to just be fair to the person, retrench him following due process and pay the correct separation pay.
Do it as what Kidzania did to its hundreds of employees. Upon checking the commercial viability of staying closed indefinitely since kids are all required to remain at home, Kidzania management decided to simply close down Kidzania and let their people go.
There has nobody sadder than me and my daughter when Kidzania announced its closure. Kidzania had the best experiences and employees, and we would go there almost every weekend. I even wrote multiple articles on it.
Another Weekend, Another Work Day @ Kidzania Manila
Highly Recommended: Kidzania —- Where Kid’s Ambitious Dreams Come True!
But while it was a complete bummer to have Kidzania shut down, I understand that Kidzania is also trying to be compliant with the law and fair to its employees. Since they don’t know when the pandemic crisis will end, the best way is to just shut down, let the people go, pay them the correct separation pay and when situation changes, just rehire them again if ever the employees still want to join Kidzania again.
Yes, employers can still legally rehire those they retrenched before because of bad circumstances. If the person is good, hire him again. But at least you don’t leave the person hanging and that person can do whatever he wants in his life.
The choice is yours of course. All I am here is to just lay down the facts, share what I know and hope that you do the right thing for the company and the people.
Time is running short. Hope this post helps clear out a few things!
Have a good week ahead!
84 thoughts on “HR Talk: 16 Most Common Questions Answered About Employees on Floating Status”
If the implementation of Forced Leave was questioned due to alleged bad faith, how does HR defend the decision? Upper management decided and HR was just the bearer of bad news. Also, if the employee was targeted (only person placed on Forced Leave), is it constructive dismissal (although he is technically not dismissed yet)?
It’s management prerogative to float a staff if needed. The only thing is complaining before the 6th month is premature and unfair to the employer. Only do it when done in bad faith.
Thanks, Tina. Can we still put people on rotation/ reduced hours if we’ve already maximized the 6 months on Forced Leave? How is 6 months counted, cumulative or just one time per year, etc?
Yss of course. This is part of Flexible Work arrangement. https://tinainmanila.com/2020/08/31/hr-talk-here-are-the-legal-flexible-work-arrangements-available-to-preserve-jobs/
hi ms tina, im 62yo callcenter agent placed on floating status since march 17. the “selection” of those who will be retained abd those that will be reprofiled was based on a survey about internet availabity asap.there were some agents who were working onsite as well. since then i was in constant communication with my immediate supervisor trying to stay connected and to show my intention to go back to our previous account.ever since ecq, i did not get any clear and consistent infirmation from my supervisor.we were recalled july, even hiring new agents and rehiring.until i found out that these people are done with the training and would be makinv calls. i felt so discriminated against and insulted and pushed to decide to leave the company for constructive dismissal. i wrote HR 3x but of course, did not get any response.
Q, i intent to pursue a complaint on the basis of the Anti Age Discrimination Act (RA 10911). i am the only matured agent and due for my retirement.
what is your taje on this? thank you
It’s hard to say your company discriminated as you’re already 62 years old and your company still hired and continually hired you. If there is real age discrimination, you will not even be in your current position.
The company is only following the Joint Memorandum Circular No. 20-04, Series of 2020 (DTI-DOLE Joint Memorandum Circular No. 20-04-A, https://tinainmanila.com/2020/08/16/hr-talk-8-questions-from-the-dti-and-dole-supplemental-guidelines-on-workplace-prevention-and-control-of-covid-19-answered-so-you-dont-have-to-read-the-22-page-document-dropped-last-august-14/).
The Joint Memorandum Circular reiterates that high-risk people who include the following:
– Senior citizens
– Pregnant women
– Individuals with underlying health conditions
– Those below 21 years old
Should be placed at WFH (Work from Home) arrangements IF POSSIBLE (Hence, management discretion). If they are asked to report, they must first provide a Medical Certificate of Fit to Work and can only stay a limited amount of hours in the workplace.
If there’s no work to be done, then they should stay at home. Labor Law allows floating of up to six months for direct hires. If they work, they should get paid. If they don’t work, they don’t need to get paid. In other words, this is not discrimination, but rather, your company following the labor guidelines protecting senior citizens of COVID-19. If you file for constructive dismissal, you will lose.
Have you worked there for 5 years and up? If so, you may request for an early retirement. This is NOT mandatory as you’re 3 years shy of 65 years old. So company can or opt not to retire you if they want. Hence, if you want to fight them, go ahead. But you won’t get your retirement pay no matter how you scream and shout because that’s not mandated yet. If you opt for retirement pay, do so with HONEY not vinegar. You will get farther if you talk to them nicely and pakiusap.
Be patient, sweet, and nice. Understand the labor guidelines and why you’re being benched. Your company seems nice to have kept you employed due to your age. Please do not destroy it for other senior citizens who will apply there by complaining against the company and filing for constructive dismissal just because your feelings are hurt, even if the company is just following the law.
You have 3 options:
1. Wait for 6 months to be floated — after 6 months, you will be paid separation pay. 1/2 month of pay per year of service. Minimum of one month.
2. Request to have an early retirement. If they give in, that’s 22.5 days per year of service.
3. Scream, shout and complain. Which is your original plan. This is the worst plan ever. Please do not.
You need the company more than they need you so it is better for you to work with them, not against them, as all other options require their cooperation for your best possible gain. Hope that you take this feedback and don’t kill me just because it’s not the message you want.
hope this helps!
Hi Tina! Great and comprehensive info once again! Thank you so much for sharing. Got questions. 1) If leave credits of employees have been given and maximized until April 15, should the 6 month period be counted instead from April 16 and not March 17? 2) Re your point on #16, what if it’s really true that those industries mentioned above were just allowed to reopen only recently (last Sept 1) and worse, only at 30% venue capacity, shouldn’t that be a valid excuse to not re-hire everyone back just yet so that it can recoup some of its losses and restart the business. The company can’t afford to pay sep pay either because it’s been closed since March 17 and has just re-opened only recently. Company’s only option is to do flexible work arrangements like allow employees to work once or 2x a week until operations, clientele base and sales get normalized. Would that be okay? Thank you Tina. Always a God-sent! Take care.
1. Yes, April 16. Floating starts when leave credits are fully utilized.
2. No, they can now operate. If it’s 30% capacity, ask people to report back again and do Flexible Work Arrangement. Make sure agreement is written.
3. Yes that is okay. Read here: https://tinainmanila.com/2020/08/31/hr-talk-here-are-the-legal-flexible-work-arrangements-available-to-preserve-jobs/
Thank you so much Tina!
This is very informative.
May I ask if constructive dismissal is applicable to me or is it a bona fide suspension. Our company is a manufacturing of essential products thus we are really not affected by the pandemic. I was on a work from home since then. However, last August. My boss called me to tell me that for now, I am not hired by the company. With no pay also. No prior notice were given to me as well. Then all my mails and access we’re terminated.
Thanks in advance 🙂
Confirm first if you’re terminated or just suspended. Otherwise, you will never get your answer.
Hi Ms. Tina!
All of our employees have been on floating status (not called back to work) since March 16. By June, 80% of our employees were called back to work but on rotation. We currently have 2 employees who we have not called back since March. Both have yet to fully exhaust their leave credits. When do we start counting when their floating status commenced?
March 16 for the two is the start date of floating status. Better decide ASAP: retrench or recall
Hi. question, dole advised for the 30 days notice to them and to the ee within the filling of floating status. for ex. march 17 ecq, lets say nkapag file sila that day then april 17 palang ba ang start ng 6 mos?
Does not matter which day you filed. The important is suspension of work started March 17. This is the first day of floating status.
No, it started when work was actually suspended. So March 17.
Hello, Ms. Tina!
On May 15, our company imposed the “streamlined period” where there are non-essential & essential employees. I was one of the non-essential employees (no pay since then). According to the company pres, the streamlined period would only be until end of July 2020. But, come August 3, we have not received any formal memo on being recalled to work. August 11, the company president sent me a letter informing me that the dept I belonged to will be absorbed by a newly formed office of legal affairs with an assisting hr consultant (i’m an hr btw) which deems my position/services redundant. However, she said, that the BOARD has not decided on my employment pending resolution to some issues in the HR dept. In that same letter, the company president said that I would be called back by August 19 but as of date, they have not called me back for anything.
Am I on “floating status”? They already have an assisting volunteer hr consultant which means that if ever they called me back I would be not reinstated in my former position, right? In my case, can I push for constructive dismissal?
Hoping to hear from you!!! Thank you!!!
Yes, you’re on floating status.
You MAY file for constructive dismissal, but I suggest you won’t first. Remind your employer of the 6 month max rule and if they can’t ask you to report back to work, to just pay you the correct separation pay.
Madaling magreklamo pero if you read what I wrote, hindi din madaling manalo. Mahabang process din. So just make sure there’s real abuse. Talk to your HR and ask you to report. Huwag yung antay ng antay lang ng tawag.
Hi Ms Tina,
May I ask for your advice:
My HR consultant said that the floating status is when you released the document to dole. In our case, we reported the floating status on June. We resumed operations for flexible wf on end of May. My HR consultant said that she has spoken to the dole officer stating this rule and thus floating status can be decided until December. I’m not sure who to follow anymore.
Actual work suspension date.
Hi Ms. Tina,
We would like to seek your help and advise in our case below.
1. Our company is fully aware of our floating status and until today they don’t have yet the final decision
2. We haven’t received any notice from our company regarding work resumption or retrenchment letter, HR just saying no decision yet from the Management.
3. Not all employees are aware of this 6 months status, should the HR inform the employee about it? or
4. Should we wait for the Management’s final decision?
5. Is it still legal and no sanction will be given to the company if they will inform the employee on the day of his/her retrenchment?
Hoping for your response on this.
You need to followup with HR reminding them of the 6 month rule and if they will ask you to report.
Hi Ms. TINA A BIG INSPIRATION! VERY INFORMATIVE PO
I would appreciate if you could help my husband
He was not given any work schedules since March 17. Almost all the drivers, except him, were working on a regular schedules since they are in the food industry. He’s bern calling the Manager and the HR dept but were not given any updates. He recieved a call last July from the manager asking if he is still interested to work and he said YES. but then after that , no updates.
Last Aug 28 The HR dept held a zoom meeting with 9 other employees announcing notice of lay off effective Aug.28. My husband did not sign yet the notice and made a letter of inquiry to the HR regarding start date or period of lay off. This would mean ANOTHER six months of waiting from Aug 28 as indicated in the notice, but as up to this date, we received no reply.
As an employee, is there any rule or labor issue, if one refuses to sign yet the notice of lay off?
Does the rule of Seniority applies on lay off issue? My husband has been connected with the company for 7 years and the senior driver among all the drivers who are working regularly since March. He is physically fit and even had rapid test done by local govt.
Based from your article, the six month period alredy expired… what will you advise then since the company want it to start Aug.28? Is this legal?
THANK YOU IN ADVANCE! Please keep writing to help others enlightened into relevant issues.
Please stay safe and hope to read more and more of your articles.
Talk nicely to the company. While you’re ok to wait, work suspension actually started 6 months ago last March 17. Hence, it’s now 6 months from Sept 16.
Can they recall your husband to work or just pay him the correct separation pay which is 1/2 month salary per year of service? If so, sep pay is 3.5 months of pay. If they can’t pay, simply ask your husband to report back to work.
Thank you for your immediate response! Appreciated po. Just in case po that the company insist that lay off period starts aug. 28, can we say that it is still acceptable? Illegal?
Say company decides to retrench his employment, can he refuse to sign notice based on FILO “First In, Last out? Again po, he is the most senior among all the drivers. And all other drivers are working regularly since March.
Thank you again!
Why would it be illegal? Employee can refuse to sign but as mentioned earlier, company need only a witness to say worker was offered the letter but refused to sign or receive. This technicality is then irrelevant.
The question is, will the company pay the correct separation pay?
If March 17 will be the effective date of the floating status, are we still be able to file it via DOLE online?What will be the consequences of late filing on DOLE?And how about the 30 days notice requirement to the employees?
You are beyond late. But the issue is not the filing but the cold hard fact of what are you doing about it now that the 6
Months is over?
You have two choices: Recall the workers OR separate them and pay them the appropriate pay. What is your choice?
I’m currently employed(albeit in floating status) as a regular ESL Teacher at a private school that offers education to K-12 students and ESL learners. I work in our ESL Department, catering to Korean students who want to learn English. We work the whole year, as there’s usually a steady influx of Korean students to teach even during Summer and Christmas Vacations. Thus, our ESL Department’s schedule doesn’t follow the school year plan of the K-12 school.
Last March 31, 2020, we were notified that both the K-12 school teachers and our ESL Department teachers will be on vacation. This is due to having no students to teach because of the Taal Volcano eruption. This is the first time our ESL Department followed the regular school’s vacation schedule. Then, the following months Covid19 happened, the opening of classes was delayed until August. Only the K-12 school teachers were called back to work last July 27 to prepare for the K-12 opening. Our ESL Department teachers remain in floating status. Last September 22, we sent a letter to our company asking for their plan in case the 180-day floating status reach its end on September 27(start date April 1). The company answered that the floating status day count shouldn’t include the 2-month vacation (April-May) as it’s part of the school year’s schedule.
My inquiry: Is our company right in their claim to correct the starting date of our floating status? We humbly ask your kind office to shed light to our current predicament. Thank you so much and have a great day ahead.
Hi Tina, I was stopped to my work last May 17 for investigation of non called back to customer, Im in BPO industry. After 60 days I received notice of decision in verdict of Final Warning. As per my previous team manager I was removed on the account I handled. After I got the decision which is dated July 17, 2020 the HR and key officers was not hear anything from them, I tried to follow up but they are not responding in any chance. Then I reported this to SENA DOLE, then the labor dept was emailed our company HR but they are still not responded. The SENA DOLE staff said that I nees to elevate the case to NLRC. But before I elevate the case to the higher government institution. What I did is reported this matter to high executives and they are forwarded my concern to the our company legal. Our legal department assist me on this matter but they said the HR have the right not to replied to me directly because their job is just to coordinate to my previous team leader and operation manager, that is why the fault will be with my previous key officers. As per legal the reason it took 4 months to find me a new assignment because of my case as fraud or not to called back the customer. When I was talked to our legal staff she can provide me a new assignment in just a week after they learned that I was reported this case to SENA DOLE and subject to send the case to higher dept in NLRC. As per legal I was not subjected in floating, layoff or suspension the only thing it took 4 months because of my case, but they are not informed me about my employment status after they provides the notice of decision dated July 17, just recently on Sept 22 after they learned that the case will subjected to swnd to NLRC. My question is it is normal about the procedures of hearing on my case – it is normal i was not invited to any hearings? If my previous officers and HR not communicated to my question and concerns about my follow up about my employment status for 3 months is there something wrong about the processess? Also if there ia something wrong about the procedures of the HR and key officers which ia handled the issue it will not reflect to the company? Do I have the right to ask backwages or my company need to give me payout for my lost? Please advise.
You said you stopped working last May 17. If that’s the case, you were simply placed on floating status for four months. If management wants to reassign you work, it’s just a matter on whether you will accept it or not.
If you don’t report when they ask you too, they will simply inform NLRC they want you to report but you refused. They will make it sound that you never intended to report anyway in the first place.
If you report, then there is less issue na.
You can talk to HR if they are willing to give you separation pay. If so, it’s 1/2 month for every year of service, minimum of one month pay. But if you fight it, it will be a long battle and depending on your next steps, you may win or lose. Since it’s four months pa lang, it can easily go either way.
Hi Ms. Tina. Good evening.
I need your insights po. We have employees na co-terminus ung employment nila and dependent kami Sa client schedule. Meron mga employees na walang work since March.
Ang concern ngayon po, ung iba nag end of contract last June, July, August. We issued letter stating na nag end na ung contract nila and these employees responded na willing sila mag wait ng next project. Ang question ko po:
1. Pag Co terminus contract po ba and umabot sila ng 6 months na no work no pay technically entitled pa rin po for separation pay? These are the employees na wala na talaga sila contract (EOC) by record. But by treatment, parang flowing sila kasi waiting Sa incoming project.
2. Si employee joined Oct 2019 and nag end nung April ung contract pero nerenew po for another 3 months dahil hindi Pa tapos Sa project. Co terminus pa rin Ung status. Is this tantamount to regular post already? And since wala ng project talaga and hindi na namin na renew ung 3 months, magbabayad ba kmi ng separation pay?
Thank you so much.
1. They are project based with employment depending on project. If they are end of contract, they are simply end of contract. Process their final pay. Pag may new project, just offer it to them na lang muna. But if there’s no project, they are free to find new jobs.
2. No, they are contractual employees. End of contract.
3. Not if there’s a written agreement that the 3 months is an extension of the project. No separation pay because end of contract.
Thank you so much Ms Tina Sa insights. I have clarification lang po for end of contract.
His contract will supposedly end po by October 10 pa pero what if po napaaga ung tapos ng project niya (Sept 24) and wala po kami mapaglagyan Sa kanya. So the company decided to end na lang since Co terminus naman ung contract niya. Is he entitled to separation pay? We already prepared his last pay na po.
Thanks po Ms Tina.
If his contract is CO-TERMINUS to the end of project, then he is NOT entitled to separation pay. Just prepare his final pay.
Thank you so much Ms Tina. 😊 I’m looking forward to your online sessions. God bless po!
Hi Ms Tina,
Good day. I have read all your articles related to floating procedures to be observed. Very comprehensive po and I’ve learned a lot of tips from you.
I got questions lang along the way. What if the company failed to observe the 30 days notice for floating.
We just learned that these regular employees ended their project last Sept 21. We’re caught off guard since HR is not aware of client’s engagement (as to when they will end the project). Meron kasi naka assign na Project Officer. Walang advice kasi we all know nasa project pa sila.
1. We are already late but can we still issue letter to these regular employees na floating na sila since September 21?
2. Need pa po ba ireport Sa DOLE?
Thank you so much.
With COVID-19, the 30 days notice period is not strict anymore. Inform the staff ASAP they are floating since September 21. And yes, even if late, you need to report this to DOLE using the RKS Form 5.
Floating starts after leave utilization. You need their written consent to use up their leaves. If they don’t allow you to use their leaves, start after you stop paying them.
Additional question po:
1. Since they need to exhaust all leaves muna, does it mean the start date of floating status will commence right after leave utilization? Or dun pa rin kami mag base Sa date ng end of project?
Thank you 😊
Thank you Ms. Tina for your help. 😊
Hello there Madam Tina,
A good read and very helpful.
I work in a Tissue company located in Cabuyao City, Laguna. Pano po kung simula ng March 17, 2020 up to present ay twice lang nakapag-Work From Home, April 6 to April 7. At nagfile ang company about sa mga floating status ng 1st week of June (wala din advise or letter na na-receive), although considering fully operational ng March, April and May up to this day.
Then ngaun po October 14 ay pinadalhan nila ako ng Recall To Work Order at nakasaad na sa Quezon City office ako magreport at di sa mismo planta sa Cabuyao kahit open at operational nmn dun, ang reason ay decreased in sales. Valid po ba yun na sa ibang branch ako i-assign kahit operational yung mismo na kung saan ay nagwork ako? Please advise. Thanks and God bless!
Cabuyao to QC is an hour away. Technically they can since Transfer of Branch is acceptable Flexible Work Arrangement. See FWA#3 as follows: https://tinainmanila.com/2020/08/31/hr-talk-here-are-the-legal-flexible-work-arrangements-available-to-preserve-jobs/
However, since Cabuyao is already operational, you can request to be assigned in Cabuyao. The FWA is better done kasi if Cabuyao is closed, which it is not.
Hope it helps!
Hi Ms. Tina,
If the employee is on floating status they are not paid, does it mean that during the months they are on floating it is not included on the counting of the computation of 13th month pay?
Ms. Tina, are employees on floating status allowed to work for other company? Since times are hard and they are not receiving anything from their current employer anymore and bills are piling up, and there’s not even an update from the management as to when they can get back to work, or what the management plans are. So they decide to take the initiative and find work ( temporarily ) with other company.
Ms. Tina, are employees on floating status allowed to work for other company? No income for how many months and bills are piling up. No update whatsoever from the management as to when we can get back to work or what their plans are for the employees. So while waiting for our fate, I am thinking of applying with other company just so I can have income to provide for my family. Need your advice. Thanks
Hi Miss Tina thank you po for the information. I just have few clarification though, I was put on Mandatory leave last May 1, 2020 effective immediately and the management dispersed my team.Reason why they put me on mandatory leave because of team perfomance prior and during pandemic. I did not received any coaching from them and they cannot provide me a valid data as to what specific months I had poor performance po. But before po nangyari ang lahat last March 17 when Cebu announced that they might imposed ECQ I was not able to report to work na po and they even allow us to file for an indefinite leave. I asked for work arrangement to be working from home but they only offered it to agents not for supervisors. My senior supervisor advised me that for me to be eligible to work from home I need to step down from my position back to an agent which I requested since I have 4 kids at home and my parents are all seniors and I dont have siblings to help me look after them if I continue to report sa office so I sent an email to the management requesting to work from home as an agent but 1 week na po yung email request ko wla po reply from them so what I did was I cancelled my request and nag report ako uli sa office. But nung March 26 Cebu imposed ECQ and we are not allowed to go outside since wla pa po proper guidelines from the city office. Our company doesnt have camp on site, work from home set up for Supervisor and free transportation until 1st week of April. They started the work from home set up around 2nd week of April but due to lack of equipments and most of my agents doesnt have internet access at home I only had 2 agents working from home and 2 agents working sa office so from 20 agents yung nag report lng to work is 4 na lng po which is very impossible for us to reached our team quota since we are in a Travel industry and most of the flights was cancelled with limited flights available at that time. And yung problema pa was they only offered us a commission based salary tinanggal nila yung basic pay namin from march to end of april and wala kami pinirmahan na contract na maging commission based na lng kami. Hirap po talaga kami at that time since nag consumed po kami nang electricity and internet bills and used our own equipment since hindi po nag provide yung company nmin nang equipment. Last April 30 my manager told me na may meeting po kami with my team in May 1 he asked me to set a schedule sa zoom and nung May 1 before nya ni meet yung agents ko kinausap nya ako muna informing me that the management decided to put me on mandatory leave because of my team performance before and during pandemic but he advised me na mag makaawa daw ako and mag send nang email that I badly need the job and to agree na mag work ako as an agent not a supervisor anymore coz if not if maging ok na daw ang situation nang covid my status will still be under deliberation pa din. I replied to his email asking for a data kung anong month ako low performance comparing the data I have and he did not reply to my email since May 1. I sent an email again last June 1 asking for my real status still no reply. I sent a message to our HR manager and assistant shift manager asking the same question last June and September still no reply. I was left with no choice so I consulted Dole about my case last June 1 and asked them If I can look for another job since wla akong pangsustento sa mga anak ko at magulang ko and sabi nila is Ok daw ako mag apply since ma justify nman nila yung needs ko. So I applied and got a new job for 1 month but I decided to end my contract with them after a month coz worried ako baka ako pa ang ma reklamo nang employer ko. I called again Dole last week and formaly filed a complain since 5 months na din mahigit from the time na nka mandatory leave ako but the other person i talked to informed me that I am not allowed to commit to another company.
My question is allowed ba talaga akong mag work sa ibang company given the situation na I am on Mandatory leave until further notice, given na sabi nang manager ko na even if covid situation will be ok still my employement will still be under evaluation?
I cant afford not to have a job to sustain my family needs lalo na sa situation ngayon and I have 4 kids po at ako lang ang nagtatrabaho sa amin since retired na po yung father ko.
I hope you can enlighten me more with my case po.
Hello, inquiry about Paternity Leave.
Employee was on a no work, no pay status during the start of ECQ and was later placed on Forced Leave. He was recalled back to work on October 16. Only recently we were told that his wife gave birth last April 17. He submitted his marriage cert and child’s birth cert.
Question: Given this, can he still use his 7 days paternity leave? As I understad there is a certain period when he can only use the paternity leave. Can’t find the reference but not sure if it can be used within 30 days OR 60 days after wife’s delivery?
Hoe to hear from you. Thank you.
“SECTION 4. Notification. — As soon as the married male employee learns that his spouse is pregnant, he shall inform his employer of such pregnancy and the expected date of delivery within a reasonable period of time. The employee shall accomplish a Paternity Notification Form to be provided for by the employer and submit the same to the latter, together with a copy of his marriage contract, or where not applicable, any proof of marriage. Provided, That this notification requirement shall not apply in cases of miscarriage or abortion.
Any employee who has availed of the paternity benefits shall, within a reasonable period of time, submit a copy of the birth certificate of the newly born child, death or medical certificate in case of miscarriage or abortion, duly signed by the attending physician or midwife showing actual date of childbirth, miscarriage or abortion, as the case may be.”
The seven-day leave may be enjoyed by the qualified male employee before, during or after the delivery by his wife. However, this benefit can only be availed of not later than 60 days after the delivery date and the same is not convertible to cash (Sections 5 and 7, IRR of R. A. No. 8187).
May I ask if a probationary employee who are currently on floating status due to Pandemic and resigned before the resumption of operations, can he contest about the COE if the company placed his employment period only up to the last day of his service and not on the day when he submitted his resignation letter? Also, Is he still entitled to have a 13th month pay since he rendered 3 months for this year? Thank you!
He is entitled for 13th month but pro rata. It won’t be big.
Yes, but if company re-edits the COE and writes he served till last day of A, work was suspended due to ECQ and he resigned at date B, this is still valid and legal. This will look worse to a new employer when he’s looking for a new job. But yes, he can ask company to re edit to be more specific.
Hi Ms. Tina. My concern po is we are a manpower agency. 5 regulars are deployed to a client who decided not to renew the contract with us next year (expiring on dec 31) but willing to retain our regulars to be absorbed by the new agency. Pero si staff ayaw magpa absorb since alam nila ang track record nung new agency when it comes to labor issues. Sabi nila mag papa retrench na lang sila. Right now we are trying our best para Makahanap ng bagong work with the same pay for them kahit na Hindi pa dec 31. While we don’t have problems of separating them by dec 31 and give separation pay, we are thinking na ilagay sila SA floating status starting Jan 1 para Hindi masayang yung tenure nila SAmin especially if nahanapan ng work. We only plan to float them for 3 months tapos Kung wala talaga, e di saka bayaran ng separation pay. On the principle of Management Prerogative, are we right and making sense? Can they demand to just get the money by dec 31? Appreciate your feedback. Thank you.
You can float them for 3 months.
The only thing you can concede is the payment of PRO RATED 13TH MONTH PAY by December 24.
Other than that, magantay sila.
Make sure you document —- Sana may written response sila na ayaw talaga nilang magpalipat —- that they did not want to be absorbed by the new agency and send a copy to the client. You will need this later if they complained sa DOLE. It will show you tried to find them jobs pero ayaw nil.
We are a manufacturing company of essential products. Our company uses alternative working schedule however some employees were given notice for floating status.
Earlier this week, we gave 2 employees a letter advising that they are now in floating status effective immediately as the sales plummeted and we can no longer afford to pay their salary. We are still evaluating which employees we are putting in a floating status.
On the same note, we hired sales agents to help us with our sales but we still have not seen the results yet as it takes time (mostly 2-3 months) before we can reap the hard work.
Can you give me a feedback? Thanks!
Are these two employees on floating status on sales? Or some other position?
So what is the question regarding the newly hired sales agents?
Regarding the 13th month pay, is the company required to include the months that the employee was on floating status?
Please add all TOTAL BASIC PAY RECEIVED in the year and divided by 12.
Basic Pay is just pay for normal time before the deduction of witholding tax and mandatory benefits. It excludes allowances, bonuses, commissions, overtime and holiday pay.
Yes of course but those months are valued ar zero.
Hi Tina. I would like to ask if an employee is on a floating status, what is the employer’s responsibility regarding contributions like SSS, PhilHealth and HDMF.
Thanks in advance for your help.
If employee did not come in, he has no earnings. If no earnings, no benefits.
How can the Employee pay his/her own benefits, like SSS, if the person is labeled under an employer who is still out of operation. But the employee is willing to pay his/her own benefits from his/her own pocket? Just in order to continue to drop and not missed many months of no contributions. Thank you so much
Pay it voluntary. Just go to SSS, Philhealth and Pagibig and pay it as a voluntary payment.
Yes employee can pay voluntarily. Just arrange with SSS, Philhealth and Pagibig.
Good day, Ms. Tina! Our company closed due to financial problem. We no longer have the money to buy for medical supplies which affects the operation of the business that belongs to healthcare industry. As an employee, we were just informed through a letter that we will temporarily shutdown. So we are somehow in a floating status. While in a floating status, we took an on call job to other healthcare facility. Last week, the management told us that there will be a meeting. However, what happened was we were interviewed by someone claiming that they are the new owners of the company. They told us that there’s no assurance that we will be absorbed by them. My question is 1. Are we entitled to a pay while we were on “floating status”? and 2. Are we entitled of a separation pay from the former owners? Also, what would be the basis of our separation pay since our employment contract gets renewed yearly. Lastly, some of the employees did not resign but are currently employed by another company. Are they eligible to get a separation pay? Thank you very much!
If you’re on floating status, it’s no work no pay.
Until you get formally retrenched or the business shuts down, only then can you get separation pay.
If your contract is fixed and renewed yearly, hence, end of contract with an end date, there is a possibility that there is no separation pay.
If employees work elsewhere, it depends what rules Company A has on sideline or moonlighting. Given Company A Has not yet shut down or retrenched them, the staff working in Company B Are not eligible for sep pay.
Hope this helps!
No, you are not entitled to pay while on floating status.
You are not entitled to separation pay unless you are formally retrenched by your original company. You will only be paid after the completion of the 6 months floating status.
If end of contract and renewed yearly, there is no separation pay.
Hope this helps!
Hi, Ms. Tina.
One query that seems to not have been addressed by present DOLE issuances is the instance when an employer decides to retrench the employees and sends out the required 30-day notice within the period of the 6-month floating status.
In this case, are the employees be entitled to salary covered by the the 30-day notice period but which fall within the 6-month floating status period?
Here’s the clincher—-DOLE said 30 day NOTICE period. They did not indicate if said notice is paid. They also did say that we must follow the “with work, with pay. No work, no pay” policies.
If the person is still working throughout the period, it’s awkward to have that staff not work so you can avoid the 30 day pay period. Tuloy tuloy lang and since nagtrabaho, bayad lahat.
But if the person does not work as he’s been floating over the last 5 months, shall you pay? Since there is no work no pay, unless you ask him to work, there is no pay.
But you have to count the entire floating period as part of his separation pay.
DOLE only says 30 days notice. They did not clarify PAID notice. So if the person is floating, continuous ang no work no pay dahil walang work naman talaga nagawa.
I agree with you. currently disputing this actually with DOLE as DOLE officer insisted that the 30-day period (even falling during the floating status) should be paid. it doesn’t make sense also no basis for that.
Yes, what is clear is that the floating status period is considered in computing separation pay.
Hi Tina. If an employee is currently on floating status and has a remaining vacation leave credits, should the employer grant it by paying the employee? Thank you
Yes, pls convert the vacation leave to money if employee allows.
Yes of course. If the staff has leaves left, please convert to cash by granting him the leaves he already earned.
Thanks for writing this down. It’s been enlightening. I hope this message finds you in good health 🙂
Just a few quick questions.
What happens if you’re placed on floating status without the company filing with dole?
Is a job offer a return to work order?
DOLE has to file, but due to COVID-19, no need for 30 days notice. If staff complains, I think DOLE will be slightly nicer to company. Doon na lang idadaan sa usapan.
No, job offer is different from a RTWO. Job offer, hindi pa nagtrabaho ang staff.
Hello Ms Tina,
I just wanted to ask your kind advise, and just to make sure po, we were supposed to get enough notice that we will be put on floating is that right? If our employer just abruptly announced were in floating status last minute of our shift, with no concerete plans for all regular employees, I was hoping they should gave us enough notice. Plus the reason for putting us on floating status is not in any way related to covid.
Pre-COVID-19, yes. It requires 30 day notice. But during the COVID-19 pandemic period, DOLE is now amenable to a shorter notice.
So yes you may complain. But that’s up to you. Kasi if immediate floating kayo, even if it’s not COVID-19 related, it is still possibly related to COVID-19 kasi due to pandemic, possible na walang trabaho na maibibigay. Hence napa float kayo.
Do you still get your 13th month pay if you got suspended like 3 months before the pay out..
Yes, you will still get it. But those 3 months are ZERO. So if you add all Total Basic Pay divided by 12, you should get only the pro-rata 13th month pay.
My colleagues are on furlough for 6 months, our department furloughed regular employees but they do hire agency staff to fill in understaffed area
this may be because they can save using agency contractual staff, but is there any legal action for this?
Yes, they should not hired new people to come in while furloughing regular employees especially if the job role is exactly the same. You may consult with DOLE.
Hi Ms. Tina
The business setup po kasi ni company is they are providing offshore employees to their clients. Example need ni UK company ng accountant then si employer namin would provide the accountant and the workstation for the said UK company.
Ang nangyari po ngayon is nag-pullout na po si UK company. So in effect, wala na work si accountant.
Nagsabi po si employer na they will set the employee as float habang inihahanap sila ng bagong work and client.
Ang question po are these:
1. Di po daw kami pwede magwork sa iba during the 6 mos. kasi mo may clause sa contract na bawal. Ano po ba dapat sundin? Yung Law or yung contract?
2. When HR is asked, wala nman daw po memo si DOLE or form sila pinasa sa DOLE kasi di daw needed kasi di naman sila magkoclose. Tama po ba yun? Di po ba ang burden to prove na needed i-float si employee ay asa employer?
3. If di nman pala sila magclose and nagha-hire pa din sila ng employees for other clients, tama po ba maglagay sila ng employees as floating?
4. Ano po masuggest nyo way to move forward on our issue?
1. The Non-Compete Clause of the contract must be followed. Restrictions are stricter if same industry. That’s why, it’s called Non-Compete clause. Balikan ang contract.
2. Company has to report the floating status to DOLE at https://reports.dole.gov.ph/
3. Yes, hanggang walang clients. Maximum of 6 months. However, kung may clients na, dapat ipapasok.
4. Makiusap if pwede maghanap ng ibang work na hindi naman nagcocompete kay company.
Good luck po.