Prolonged ‘Floating Status’ for Security Guards Can Constitute Constructive Dismissal

TLDR: This case clarifies that while security agencies can place guards on ‘floating status’ between assignments, unreasonably long periods without deployment can be considered constructive dismissal, entitling the guard to separation pay and backwages. The employer bears the burden of proving the floating status was not a disguised termination.

G.R. No. 182086, November 24, 2010

Introduction

Imagine losing your job not through a direct firing, but through a slow fade – being kept on standby indefinitely, with no assignments and dwindling hope. This is the reality of ‘floating status’ for many security guards in the Philippines. While temporary off-duty periods are common in the security industry, this case highlights when such status crosses the line into illegal constructive dismissal, offering crucial protections for vulnerable employees.

In Salvaloza v. National Labor Relations Commission, the Supreme Court tackled the issue of constructive dismissal in the context of a security guard’s prolonged ‘floating status’. The case centered on Gregorio Salvaloza, a security guard who was repeatedly placed on floating status by his employer, Gulf Pacific Security Agency, Inc., leading to a dispute over illegal dismissal and unpaid wages. The Court’s decision provides important guidance on the rights of security guards and the responsibilities of security agencies in managing employee assignments.

Legal Context: Security of Tenure and Constructive Dismissal

The Philippine Constitution guarantees security of tenure to employees, meaning they can only be dismissed for just or authorized causes and after due process. Constructive dismissal, while not an outright termination, occurs when an employer’s actions make continued employment unbearable, forcing the employee to resign.

Article 294 of the Labor Code defines the rights of illegally dismissed employees: “An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement.”

For security guards, the concept of ‘floating status’ is unique. Security agencies often rely on contracts with clients, and assignments depend on these contracts. A guard may be placed on floating status between assignments, but this status cannot be indefinite. The Supreme Court has set a six-month benchmark: a floating status exceeding six months may be considered constructive dismissal.

R.A. No. 5487, also known as The Private Security Agency Law, provides the legal framework for the operation of security agencies and the employment of security guards. Section 9 of the law states that “no person shall be employed or used in a private detective work unless he be a licensed private detective or watchman.” This underscores the importance of maintaining a valid security guard license for continuous employment.

Case Breakdown: Salvaloza’s Journey Through the Courts

Gregorio Salvaloza filed a complaint against Gulf Pacific Security Agency, Inc., alleging illegal dismissal and various labor violations. The timeline of events is critical:

• 1996-2001: Salvaloza worked for Gulf Pacific, experiencing multiple periods of ‘floating status’ and assignments.
• August 2001: Salvaloza was placed on floating status after being relieved from his post.
• March 2002: Salvaloza filed a complaint for illegal dismissal.
• Labor Arbiter (LA): Ruled in favor of Salvaloza, finding illegal dismissal and ordering reinstatement and backwages.
• National Labor Relations Commission (NLRC): Reversed the LA’s decision, dismissing Salvaloza’s complaint.
• Court of Appeals (CA): Affirmed the NLRC’s decision.
• Supreme Court: Partially granted Salvaloza’s petition, finding constructive dismissal but modifying the award.

The Supreme Court emphasized the employer’s burden of proving that the dismissal was legal. The Court stated, “Failure to discharge this burden would be tantamount to an unjustified and illegal dismissal.”

The Court also addressed the issue of Salvaloza’s security guard license, noting that while it’s the guard’s responsibility to maintain a valid license, Gulf Pacific failed to prove exactly when Salvaloza’s license expired. The Court explained, “Notwithstanding the admission of Gregorio that his license expired, although insisting that it was Gulf Pacific’s practice to renew the licenses of its security guards for a fee, Gulf Pacific failed to specifically show when the legal impossibility of posting Gregorio for an assignment due to the latter’s lack of a valid license commenced.”

Ultimately, the Supreme Court found that the prolonged periods of ‘floating status’ constituted constructive dismissal, stating, “The unreasonable lengths of time that Gregorio was not posted inevitably resulted in his being constructively dismissed from employment.”

Practical Implications: Protecting Security Guard Rights

This case serves as a warning to security agencies: indefinite ‘floating status’ can be a costly mistake. Security agencies must actively manage employee assignments and avoid keeping guards on standby for unreasonable periods.

For security guards, this case reinforces their right to security of tenure. They should be aware of their rights and seek legal advice if they believe they are being constructively dismissed through prolonged ‘floating status’.

Key Lessons:

• Document Everything: Keep records of all assignments, relief orders, and communications with the agency.
• Monitor ‘Floating Status’: Be aware of the duration of your ‘floating status’. If it exceeds six months, consult with a labor lawyer.
• Maintain Your License: Ensure your security guard license is valid and up-to-date.
• Seek Legal Advice: If you believe you are being constructively dismissed, seek legal advice promptly.

Frequently Asked Questions

Q: What is ‘floating status’ for a security guard?

A: ‘Floating status’ is the period when a security guard is between assignments, waiting to be deployed to a new post.

Q: How long can a security guard be on ‘floating status’?

A: While there’s no strict legal limit, a ‘floating status’ exceeding six months may be considered constructive dismissal.

Q: What is constructive dismissal?

A: Constructive dismissal occurs when an employer’s actions make continued employment unbearable, forcing the employee to resign.

Q: What are my rights if I am constructively dismissed?

A: You may be entitled to separation pay, backwages, and other benefits.

Q: Who is responsible for renewing a security guard’s license?

A: While some agencies may assist, it is ultimately the security guard’s responsibility to maintain a valid license.

Q: What should I do if I believe I am being constructively dismissed?

A: Document everything, seek legal advice, and file a complaint with the National Labor Relations Commission (NLRC).

Q: Does the security agency have to give me a written notice before placing me on floating status?

A: While not always required, it’s good practice for the agency to provide written notice explaining the reason for the floating status and its expected duration.

Q: Can a security agency refuse to assign me a post because of my age?

A: Age can be a factor, but there are legal limits. Refusing to assign a guard solely based on age may be discriminatory.

ASG Law specializes in labor law and employment disputes. Contact us or email hello@asglawpartners.com to schedule a consultation.