Is Temporary Layoff Legal?

Is Temporary Layoff Legal?

The company is laying-off the employee for 6 months due to company looses.
In this 6 months, they will get no salary.

I think they are just making their way out to be exempted in redundancy pay.

Is this Legal? Kasi obvious naman na gusto nila magtanggal pero ayaw magbayad ng redundancy pay. Na gusto nila magresign yung mga employee nila para makaiwas sa mga damages

Salamat sa sasagot

yes it's legal.

How about the burden of proof?

Burden of proof is on employer
Due to the “grim economic consequences” to the employee, the employer has the burden of proving that suspension of operation is valid. The same rule applies for employees who are placed on “floating status.” Failure to do so, the employer may be held liable for illegal dismissal.[13]

For suspension of business operations due to serious financial losses, these are ordinarily evidenced by the audited financial statements, balance sheets, profit and loss statements, annual income tax returns.[14] In Manila Mining Corporation v. Amor,[15] the employer (mining company) was held liable after failing to present substantial evidence to support its claim for serious financial losses as the basis for temporary suspension of operations.

Notwithstanding, the presentation of an analysis of an independent certified public accountant was considered sufficient when a company claimed impending future losses which are neither past nor actual ones. After all, the employer is not required to actually suffer business losses or financial reverses to suspend business operations.

Further, this burden of proof is designed to guard against scheming employers who may just be feigning or pretending of business losses or reverses in their business so as to manage or ease out employees

So what's the point of your copy-paste?

There is a question before it..

"How about the burden of proof?"

Do they need to provide this? To whom?

Is is stated that "Further, this burden of proof is designed to guard against scheming employers who may just be feigning or pretending of business losses or reverses in their business so as to manage or ease out employees."

yes floating status is legal. if the company cited business losses then when you complain sa nlrc, the employer will have to show their books na they did suffer losses

What if after 6 months?

1) If you have new job. Will here be any separation pay or redundancy pay?

2) If you still don't have a job. What is expected from them if they did not resume your employment?

If you want to look for another job, then resign.

If after 6 months, they must reinstate you or retrenched you.