Uncertain job

Dear Atty. Kathy,

My mother is a lady guard. She had to take a sick leave from work. Before my mother could go back to work, she received a notice that she was being placed on floating status since the client she was previously assigned to ended its agreement with her company. About a week later, when my mother got a clearance from her doctor that she is fit to go back to work, she tried to report to the company but she was told that she is still on floating status. She was also issued a letter that she is being assigned to a new client, but the effective date of the return to work letter is still more than a month away. My mother will be on floating status for around 2 months before her new assignment. Is this allowed?

Everest

❏ ❏ ❏

Dear Everest,

Placing a security guard on floating status, which means, waiting to be posted, is a valid exercise of management prerogative, as long as it does not exceed six months.

The Supreme Court has clarified in its decisions that floating status is the period of time when security guards are in between assignments or when they are made to wait after being relieved from a previous post until they are transferred to a new one. It takes place when the security agency’s clients decide not to renew their contracts with the agency, resulting in a situation where the available posts under its existing contracts are less than the number of guards in its roster.

It also happens in instances where contracts for security services stipulate that the client may request the agency for the replacement of the guards assigned to it even for want of cause, such that the replaced security guard may be placed on temporary “off-detail” if there are no available posts under the agency’s existing contracts.

During such time, the security guard does not receive any salary or any financial assistance provided by law. It does not constitute a dismissal, as the assignments primarily depend on the contracts entered into by the security agencies with third parties, so long as such status does not continue beyond a reasonable time.

When such a “floating status” lasts for more than six months, the employee may be considered to have been constructively dismissed.

Do note that the Labor Code does not contain a specific provision for floating status, but the Court has consistently applied Article 301 of the Labor Code to limit the duration of employees’ floating status to six months, as follows:

ART. 301. [286] When Employment not Deemed Terminated. The bona fide suspension of the operation of a business or undertaking for a period not exceeding six 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 month from the resumption of operations of his employer or from his relief from the military or civic duty.

Based solely on what you shared, considering that your mother’s floating status will last for about two months before her new assignment takes effect, this is still allowed under the Labor Code and applicable jurisprudence, as two months is within the 6-month limit of the duration of floating status.

(Allan B. Radaza, et al., vs. Alcatraz Security & Investigation Agency Inc., et al., G.R. No. 272859, 19 February 2026)

Atty. Kathy Larios