The Supreme Court ruled that a security guard placed on “floating status” for more than six months is considered constructively dismissed. This means the employee can claim illegal dismissal even without explicit termination. This decision reinforces the protection of security guards’ employment rights, ensuring they are not left in indefinite uncertainty without assignments or pay. It clarifies the responsibilities of security agencies to provide timely postings and prevents the abuse of “floating status” as a means of circumventing labor laws, providing recourse for unfairly treated employees in the security sector.

Guarding Rights: When Inactivity Signals Illegal Dismissal

This case revolves around Vicente C. Tatel, a security guard employed by JLFP Investigation Security Agency, Inc. (JLFP). After being placed on “floating status” without assignment for over six months, Tatel filed a complaint for illegal dismissal. The central legal question is whether prolonged “floating status” constitutes constructive dismissal, entitling the employee to remedies under labor law.

The facts of the case reveal that Tatel was hired by JLFP on March 14, 1998. He alleged underpayment of salary and non-payment of benefits, which led to an earlier complaint. Subsequently, on October 24, 2009, he was placed on “floating status” after being removed from his last post. After six months without any assignments, Tatel filed a complaint for illegal dismissal. JLFP countered that Tatel was not dismissed but had abandoned his work, pointing to a memorandum directing him to report back to work, which he allegedly ignored. The Labor Arbiter (LA) initially dismissed Tatel’s complaint, but the National Labor Relations Commission (NLRC) reversed this decision, finding Tatel to have been illegally dismissed. The Court of Appeals (CA), however, sided with the LA, leading to the present appeal before the Supreme Court.

The Supreme Court emphasized that while it generally defers to the factual findings of the appellate court, exceptions exist, especially when the findings of the CA conflict with those of the NLRC and the LA. In such cases, the Court retains the authority to review the evidence and make its own factual findings. This principle is rooted in jurisprudence, as highlighted in New City Builders, Inc. v. NLRC, which outlines instances where the Court may deviate from the general rule, including conflicting findings of fact among lower tribunals.

The exception, rather than the general rule, applies in the present case. When the findings of fact of the CA are contrary to those of the NLRC, whose findings also diverge from those of the LA, the Court retains its authority to pass upon the evidence and, perforce, make its own factual findings based thereon.

The critical issue was whether Tatel’s prolonged “floating status” constituted constructive dismissal or whether he had abandoned his employment. The Court clarified that being placed on temporary “off-detail” is not equivalent to dismissal if it does not exceed six months. Citing Superstar Security Agency, Inc. and/or Col. Andrada v. NLRC, the Court reiterated this principle, explaining that “floating status” refers to the period when security guards are between assignments. However, the Court also noted that when this status extends beyond six months, it can be considered constructive dismissal.

Constructive dismissal, as the Court explained, occurs when the employer’s actions create an unbearable working environment, leaving the employee with no choice but to resign. The court, citing Salvaloza v. NLRC, expounded on the concept of floating status:

Temporary “off-detail” or “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… When such a “floating status” lasts for more than six (6) months, the employee may be considered to have been constructively dismissed.

In Tatel’s case, the Supreme Court found that he was constructively dismissed. After being removed from his post on October 23, 2009, he was not given any assignments for more than six months, leading him to file the illegal dismissal complaint on May 4, 2010. The Court rejected JLFP’s claim that Tatel had abandoned his work. Abandonment requires both a failure to report for work without valid reason and a clear intention to sever the employer-employee relationship. The Court found no evidence of such intention on Tatel’s part, especially considering his length of service and the unlikelihood that he would simply abandon his tenure.

The Court also addressed the alleged inconsistencies in Tatel’s statements regarding his employment details. It noted that the discrepancies were minor and adequately explained by Tatel, such as the difference between his initial hiring date and the date he became a regular employee. Ultimately, the Court concluded that these inconsistencies did not undermine his claim of constructive dismissal. The decision underscores the importance of an employer’s good faith. The Court, citing Veterans Security Agency, Inc. v. Gonzalvo, Jr., stated that an employee who takes steps to protest his layoff generally cannot be said to have abandoned his work, and the filing of a complaint is proof of his desire to return.

As a result, the Supreme Court reversed the CA’s decision and reinstated the NLRC’s ruling, with modification. Tatel was deemed to have been constructively dismissed on October 24, 2009 and is entitled to reinstatement and back wages. However, given the strained relations between the parties and the fact that Tatel had found employment elsewhere, the Court awarded separation pay in lieu of reinstatement. The NLRC was tasked with computing the monetary awards due to Tatel, reflecting its expertise in such matters.

FAQs

What is “floating status” for a security guard?	“Floating status” refers to the period when a security guard is between assignments, waiting to be posted to a new location. It’s a temporary situation but can lead to constructive dismissal if prolonged.
How long can a security guard be on “floating status” before it’s considered constructive dismissal?	According to the Supreme Court, if a security guard remains on “floating status” for more than six months, it may be considered constructive dismissal. This means the employee is essentially forced out of their job.
What is constructive dismissal?	Constructive dismissal occurs when an employer creates a hostile or unbearable working environment, forcing the employee to resign. It’s treated as an illegal termination by the employer.
What are the requirements for abandonment of work?	To prove abandonment, an employer must show that the employee failed to report for work without a valid reason and had a clear intention to sever the employment relationship. Mere absence is not enough.
What is the significance of filing a complaint for illegal dismissal?	Filing a complaint for illegal dismissal demonstrates the employee’s desire to return to work, negating any claim of abandonment. It shows they did not intend to quit their job.
What remedies are available to an employee who was constructively dismissed?	An employee who was constructively dismissed may be entitled to reinstatement, back wages, and other benefits. If reinstatement is not feasible, separation pay may be awarded.
How did inconsistent statements affect the outcome of this case?	The Supreme Court found that the inconsistent statements regarding the dates of employment and salary were minor and adequately explained, not affecting the finding of constructive dismissal.
What role did the NLRC play in this case?	The NLRC initially reversed the Labor Arbiter’s decision, finding that Tatel was illegally dismissed. The Supreme Court ultimately sided with the NLRC’s assessment of the facts.
What was the CA’s decision in this case?	The Court of Appeals reversed the NLRC’s decision and reinstated the Labor Arbiter’s ruling, dismissing Tatel’s complaint for illegal dismissal.

This decision clarifies the rights of security guards and the obligations of security agencies, particularly regarding the duration of “floating status.” It reinforces the principle that prolonged inactivity without assignment can constitute constructive dismissal, entitling the employee to legal remedies. The ruling serves as a reminder for employers to act in good faith and avoid using “floating status” as a means of circumventing labor laws.

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: Vicente C. Tatel vs. JLFP Investigation Security Agency, Inc., G.R. No. 206942, February 25, 2015