The Supreme Court held that while security agencies have the right to reassign security guards, keeping an employee on “floating status” for an unreasonable period, especially beyond six months, constitutes constructive dismissal. This means that employers cannot indefinitely delay reassigning employees without facing legal consequences, ensuring job security for security personnel.

From Guard Duty to Legal Battle: Did a Security Agency Abandon Its Employee?

This case revolves around Henry Lactao, a security guard hired by Megaforce Security and Allied Services, Inc. After filing a complaint for underpayment of wages, Lactao was reassigned and subsequently recalled to headquarters without a new assignment. Lactao argued that this amounted to constructive dismissal, prompting a legal battle over security of tenure and the permissible limits of “floating status” in the security industry. This detailed analysis will navigate the facts, the legal arguments, and the Court’s ultimate decision, illuminating the fine line between legitimate reassignment and unlawful termination.

The core issue before the Supreme Court was whether Megaforce constructively dismissed Lactao by failing to provide him with a new assignment after recalling him from his post. Megaforce contended that Lactao was merely on “floating status,” a temporary situation common in the security industry, and that he failed to report back for reassignment. However, Lactao maintained that the lack of a new assignment, especially after an extended period, effectively forced him out of his job.

The Court referenced established principles concerning the rights of employees, particularly security guards, in the context of reassignment. As the Supreme Court emphasized in OSS Security & Allied Services, Inc. v. National Labor Relations Commission, “An employee has the right to security of tenure, but this does not give him such a vested right in his position as would deprive the company of its prerogative to change his assignment or transfer him where his service, as security guard, will be most beneficial to the client.” This principle recognizes the employer’s prerogative to manage its workforce while safeguarding employee rights.

However, this prerogative is not absolute. Temporary “off-detail,” or the period when security guards await reassignment, is permissible, but cannot extend indefinitely. The Supreme Court has consistently held that when such a “floating status” lasts for more than six months, the employee may be considered constructively dismissed. Lactao’s situation exceeded this reasonable timeframe. While his initial complaint might have been premature, Megaforce’s continued failure to offer him a new assignment during the legal proceedings solidified the constructive dismissal claim.

Constructive dismissal occurs when an employer’s actions make continued employment unbearable for the employee. As defined in Fungo v. Lourdes School of Mandaluyong, it is “an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of the employee that it would foreclose any choice by him except to forego his continued employment.” This concept underscores the employer’s responsibility to maintain a fair and reasonable working environment.

Under Article 279 of the Labor Code, as amended, an employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges; to his full backwages, inclusive of allowances; and to other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.

The Court dismissed Megaforce’s claim that Lactao abandoned his job. The very act of filing a complaint for illegal dismissal demonstrates an intent to return to work, contradicting any notion of abandonment. Moreover, Megaforce failed to present concrete evidence to support their abandonment claim. Consequently, Lactao was deemed entitled to reinstatement and backwages, as mandated by Article 279 of the Labor Code.

Lastly, the Court addressed the procedural issue of Lactao’s failure to file a comment and memorandum with the Court of Appeals. The Court clarified that the appellate court is not automatically obligated to rule in favor of the petitioner simply because the respondent fails to submit these documents. The decision rests on the merits of the petition itself, evaluated against the existing record. Because the CA found Megaforce’s petition unmeritorious based on its allegations and attached documents, ruling in Lactao’s favor was justified, ensuring fairness and justice prevail over procedural technicalities.

FAQs

What is “floating status” for security guards?	Floating status refers to the period when a security guard is between assignments, awaiting a new post or client. It’s a temporary situation inherent in the security industry, but it cannot last indefinitely.
How long can a security guard be on “floating status” before it’s considered constructive dismissal?	Generally, a “floating status” exceeding six months may be considered constructive dismissal. The Supreme Court has set this as a reasonable time limit.
What is constructive dismissal?	Constructive dismissal occurs when an employer’s actions, such as discrimination or creating unbearable working conditions, force an employee to resign. It is considered an involuntary termination of employment.
What are the rights of an illegally dismissed employee?	An illegally dismissed employee is entitled to reinstatement to their former position without loss of seniority, full backwages from the time of dismissal until reinstatement, and other benefits.
Does filing a complaint for illegal dismissal affect an employer’s claim of job abandonment?	No, filing a complaint for illegal dismissal is inconsistent with job abandonment. It demonstrates the employee’s intent to return to work.
What if the employee does not respond or file comment to the case?	If the employee fails to file a comment, the court may still decide the case based on the available records and merits. Non-filing alone does not automatically lead to a ruling in favor of the employer.
What was the basis for Lactao’s illegal dismissal claim?	Lactao claimed illegal dismissal based on being recalled without subsequent reassignment, creating difficult circumstances as Megaforce violated security of tenure, effectively forcing him out of his employment.
What were Megaforce’s arguments?	Megaforce claimed Lactao was on floating status, had committed offenses in prior posts and had failed to report back after his recall, the claims for which the Court deemed insufficient grounds for his dismissal.

This case clarifies the limitations of “floating status” for security guards and reinforces the importance of providing timely reassignment. Employers must ensure that temporary off-detail periods do not extend beyond a reasonable time, lest they risk being held liable for constructive dismissal and the corresponding financial repercussions.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: MEGAFORCE SECURITY AND ALLIED SERVICES, INC., AND RAUL MANALO, PETITIONERS, HENRY LACTAO AND NATIONAL LABOR RELATIONS COMMISSION, G.R. No. 160940, July 21, 2008