Floating Status (Temporary Retrenchmet) Without Pay Legal or Not?

Hi I am a Team Leader working for a small BPO company. I was put on Floating Status. I would want to know if it is legal not to be paid. Below is the letter that was given to me last year.

NOTICE OF TEMPORARY RETRENCHMENT(FLOATING STATUS)

August 1, 2012
Dear Employee (Me)

Please be advised that (Account Name) has opted to discontinue its account contract with (BPO Company - Employer), as well as all other agreements related to its outsourced business process to our company. This decision is brought about by considerable reduction in the quality volume of their business with us.

With the prospect of all full-time employment positions dissolving with the contract, it is therefore with deep regret that we inform you that (BPO Company - Employer) will be undertaking temporary retrenchment. We are hereby serving this notice of your Temporary Retrenchment (Floating Status) with (BPO Company - Employer) effective at the end of your shift on August 5, 2012, simultaneous to the termination of the company's contract with (Account Name).

The company undertakes to re-call you, or otherwise inform you of permanent retrenchment, before six months lapses from time to time of this notice. The company further commits to search for available programs for potential endorsements. If such be the case, the company shall inform you of the opportunity for reinstatement and you will be officially engage d with the new campaign after being certified by training and after the usual transition to operations.

The company expects your full cooperation during this wind-down period. Any Unauthorized absences or absences without official leave during this wind-down period shall still be covered by the company's work Rules and regulations, Thus it will be dealt with accordingly.

Please Coordinate with HRD personnel (HRD Person's Name) or (HRD Person's Name), on any additional details or clarification on this action.

We thank you for the period you have served the company and wish you success in you future undertaking.

For your information and guidance,
Operations Manager

Noted By:
HRD Manager

Conforme: My Name (With Signature and Date)

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I was never paid during the time I was on float.
I returned to work on October 2, 2012.


Now I am on floating status again. And with no pay. FLOATING WITHOUT PAY.

The new letter is typed below.

March 31, 2013

Dear Employee (Me),

Please be advised that our client with account name: XXXX has opted to discontinue its account contract with (BPO Company - Employer), as well as all other agreements related to it's outsourced business process to our company. This decision is brought about considerably low quality and volume of business with us.

With the prospect of all-full-time employment positions dissolving with the contract, it is therefore with deep regret that we inform you that (BPO Company - Employer) will be undertaking temporary retrenchment. We are hereby serving this notice of your Temporary Retrenchment (Floating Status) with (BPO Company - Employer) effective at the end of your shift on March 31, 2013.

The company undertakes to re-call you, or otherwise inform you of permanent retrenchment, before six months lapses from time to time of this notice. The company further commits to search for available programs for potential endorsements. If such be the case, the company shall inform you of the opportunity for reinstatement and you will be officially engage d with the new campaign after being certified by training and after the usual transition to operations.

Please coordinate with your Team Leader (This is an error since I am a Team Leader), or directly with HRD personnel XXXX XXX, or XXXXX XXXXXX, on any additional details or clarification on this action.

We thank you for the period you have served the company and wish you success in your future undertaking.

For your information and guidance,

XXXXXX XXXX
HR Generalist

Conforme: (My Signature)
Date:

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I completely understand that the company has losses. But they are still in operations. I am in Floating Status. I just want it to be fair. At least I should be compensated while I am on Floating Status. Do you think I have a case here? Because enough is enough. Before I give my resignation, I want to give something back. Perhaps a lawsuit. I can't just be turned off and on like a radio. And I have a family to feed. All I need is to have at least to be compensated while on float. Thanks.

In Addition to my above message, it doesn't state that I will be compensated or not. Is this also helpful?

Thank you.

a temporary suspension of the employment relationship is allowed by the labor code, but imo, if there is still continuous hiring, the suspension becomes unlawful

Thank you for the reply. As for hiring, does this mean hiring people with the same position as I am or hiring more people like agents? Because they are hiring right now and even before they put me on float.

Since temporary.retrenchment is allowed in the Labor Code, does this inclue not being compensated during floating status? At least an allowance would be fair.

i'm afraid no salary or even allowance is required by law. i refer to similar position in hiring.

Ok the company has the option to give no salary but they should give an allowance while I am on floating status correct?

Since the campaign that I used to handle dissolved or pulled out of the company, I as a team leader has no team or campaign to lead. So they put me on float. The thing is, the company is still operating and also I don't see any signs of closure or bankruptcy, then I should be given other tasks like supporting other teams or other departments while waiting for a new task for me. Or an allowance should be given to me while I am in floating status.

no, the law does not require the employer to give an allowance, but again, if there is continuous hiring, imo, you should not be put on floating status.

Thank you very much. I appreciate your quick reply and advice.

There's an update to my situation though. I just found out that a fellow Team Lead was drafted to handle a new campaign. This Team Lead is currently handling a regular campaign. And since I'm on float they should not have done that. Because nobody else will handle her current team.

And if the period of 2 months on float should the company at least do something to reinstate an employee?

they can do this up to 5 months or just before 6 months.. if they can't reinstate you.. they will have to retrenched you..

Ok. Thank you for that sir. But regarding the issue of putting me on float all of a sudden with no heads up to me, is that even legal? The campaign that I was handling pulled out. 3 weeks before it pulled out, it was announced that the client will pull out and we end operations on March 28, 2013. I was never told that I was on the verge of being on float. But upper management announced that they were working on placing all of us in different campaigns. My staff or agents were placed in other campaigns. But when I came in on Monday (April 1, 2013) to get my payslip, HR talked to me and surprised me with the news about my situation that I was going to be on float.

The letter below:
March 31, 2013

Dear Employee (Me),

Please be advised that our client with account name: XXXX has opted to discontinue its account contract with (BPO Company - Employer), as well as all other agreements related to it's outsourced business process to our company. This decision is brought about considerably low quality and volume of business with us.

With the prospect of all-full-time employment positions dissolving with the contract, it is therefore with deep regret that we inform you that (BPO Company - Employer) will be undertaking temporary retrenchment. We are hereby serving this notice of your Temporary Retrenchment (Floating Status) with (BPO Company - Employer) effective at the end of your shift on March 31, 2013.

The company undertakes to re-call you, or otherwise inform you of permanent retrenchment, before six months lapses from time to time of this notice. The company further commits to search for available programs for potential endorsements. If such be the case, the company shall inform you of the opportunity for reinstatement and you will be officially engage d with the new campaign after being certified by training and after the usual transition to operations.

Please coordinate with your Team Leader (This is an error since I am a Team Leader), or directly with HRD personnel XXXX XXX, or XXXXX XXXXXX, on any additional details or clarification on this action.

We thank you for the period you have served the company and wish you success in your future undertaking.

For your information and guidance,

XXXXXX XXXX
HR Generalist

Conforme: (My Signature)
Date:

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I was caught off guard. I never expected to be in that situation again. So was I supposed to be given heads up first before they did this to me? I already used all my leaves. I've never used them at all until they put me on float, I filed all of it. By next week I believe that I will be reinstated. I will be handling another account. But I am worried about being on float again. If ever this client would pull out. To be honest, I want to find holes here so I can teach the company a lesson for what they've done to me. It seems that they are just using me as a buffer for all experimental campaigns. And I wasn't the reason why the clients pull out of the company. I am planning to resign from the company but now is not the time. Until I get the call from another company that I applied to, I will report back to them. But the fight is not over even after I'm gone.

Also in a section of my employment contract typed below will help anybody see and help me if I do have something to fight for here. Dated: March 26, 2012

2. Employment Status
You will join the team on a probationary status of six (6) months. With the on-going project, at no specified period, your skills, performance, and competence will be evaluated for contract renewal or otherwise. The management of the company shall have full right to rescind this employment contract at any time with due cause in accordance with the labor code and in accordance with due process.

A.
Whereas, the industry with which Magellan is engaged is ever-dependent on the availability of clients accounts, and whereas, said clients or accounts are ever changing in their needs, demands and requirements with respect to personnel, the management, after all efforts have been exerted to look for a suitable assignment, has the right to place an employee on a floating status for a period not exceeding six months. Should all efforts have been exerted by the management to look for a suitable assignment persist to fail after the lapse of six months, an employee may be separated for authorized cause subject to the requirements of the Labor Code, such as the one month prior notice and the payment of separation pay, computation of which is based on the Labor Code. Rest assured however, that the management will exert all efforts possible to always look for an assignment for every employee to maintain his or her regular employment.


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Above that part of the contract I got when I was hired last year. I was regularized November 26, 2012. I was supposed to be regularized September 26, 2012. I was given a memo that my regularization was going to be extended for 45 days.

Is that even legal?

It was not my fault I was put on float for 2 months. I haven't gotten any leave credits at that time yet. Since I was not a regular employee at the time.

They shouldn't have made the extension of 45 days for me to be regularized.

What is the prescribed time frame for an employee to be given the news that he or she will be on float or temporary retrenchment?

When I comeback next week to work again, I could spend a little time there until I get the call that I am expecting from another employer. I don't have any leave credits left anyway so might as well start in a new company and earn my leaves again. It wouldn't make any difference anyway. I plan to request our HR Manager to at least replenish all my leave credits (SL/VL) because I never got sick, and I might need those if an emergency arises. And also get all my VLs back since I never really went on vacation I just used them for me to get by during my first month of being on float. I swear when I leave the fight is not over with me and Magellan Solutions.

Sir just want to ask because i'm a quality analyst of a bpo company and since the account got pulled out i was placed on floating status max of 6 mos with no pay.. in my 4th month period being on a floating status, they gave me temporary assingment for 3 mos and i got paid but once my temporary assignment has been completed, i need to wait again for another 6 mos unless there will be an available account for me. Is it legal that I was placed on floating status even if they are still hiring even promoting other employees for thesame position that I already have?