Legality of Floating Status under Labor Laws | 28 October 2024

“Floating status” or temporary “off-detail” of an employee may take place when employees are forced to go on leave in case of temporary retrenchment of business or no posts are available for employees.

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. (Article 301, Labor Code)

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