The Supreme Court ruled that a security guard who remains on “floating status” (without assignment) for more than six months can be considered constructively dismissed. This means the employer, a security agency, effectively terminated the employment without proper cause. The employee is entitled to reinstatement and backwages unless the employer can prove a valid reason for the prolonged lack of assignment. This decision underscores the security agency’s responsibility to actively find assignments for its security guards and ensures that employees are not left in indefinite uncertainty without compensation. It also clarifies the burden of proof lies with the employer to justify the prolonged floating status.

When Silence Isn’t Golden: Did a Security Agency’s Inaction Signal Dismissal?

This case revolves around Ronald Valderama, a security guard employed by Nationwide Security and Allied Services, Inc. (NASSI). Valderama was relieved from his post at the Philippine Heart Center (PHC) on January 30, 2006, and subsequently filed a complaint for constructive dismissal after not receiving any new assignment. NASSI countered that Valderama had voluntarily resigned, citing previous disciplinary issues and his failure to report for reassignment. The Labor Arbiter (LA) initially ruled in favor of Valderama, finding constructive dismissal. The National Labor Relations Commission (NLRC) then reversed this decision, stating that Valderama was neither constructively dismissed nor had he resigned. The Court of Appeals (CA) ultimately sided with Valderama, reinstating the LA’s original decision. This led NASSI to appeal to the Supreme Court, questioning the CA’s ruling.

The core issue before the Supreme Court was whether Valderama’s prolonged period without assignment constituted constructive dismissal. The Court needed to determine if NASSI had effectively terminated Valderama’s employment by failing to provide him with work within a reasonable timeframe. The case also involved examining NASSI’s claim that Valderama had voluntarily resigned, and whether the evidence supported this assertion. At the heart of this dispute is the balance between an employer’s right to manage its workforce and an employee’s right to job security.

The Supreme Court firmly established that a relief and transfer order, common in the security industry, does not automatically sever the employment relationship. An employee’s right to **security of tenure** ensures they cannot be arbitrarily dismissed. However, this right is balanced against the employer’s prerogative to assign employees where their services are most needed. The critical factor is the duration of the “off-detail” period, or the time a security guard spends waiting for a new assignment. The Court emphasized that a temporary “off-detail” does not constitute constructive dismissal as long as it does not exceed six months. Beyond this period, the employer faces potential liability for constructive dismissal. The Court cited Megaforce Security and Allied Services, Inc. v. Lactao, stating that temporary “off-detail” does not constitute constructive dismissal, so long as such status does not continue beyond six months.^[11]

Central to the Court’s decision is the **burden of proof**. The Court made it clear that the employer bears the responsibility of demonstrating that no suitable assignments were available for the employee. This principle protects employees from being indefinitely placed on “floating status” without justification. The Supreme Court pointed out that “When a security guard is placed on a ‘floating status,’ he does not receive any salary or financial benefit provided by law. Due to the grim economic consequences to the employee, the employer should bear the burden of proving that there are no posts available to which the employee temporarily out of work can be assigned.”^[12] This highlights the employer’s obligation to actively seek assignments for its employees and not simply leave them in limbo.

In this case, Valderama argued that he was relieved from his post and not given a new assignment. NASSI, however, claimed that Valderama refused to report for reassignment, implying abandonment of the job. The Court rejected NASSI’s abandonment claim. **Abandonment** requires both a failure to report for work without valid reason and a clear intent to sever the employment relationship. Intent must be evident through overt acts. The Court found that NASSI failed to provide sufficient evidence of Valderama’s intention to abandon his employment. The lack of concrete proof undermined NASSI’s defense. Furthermore, the Court noted that Valderama’s filing of the illegal dismissal complaint directly contradicted any claim of abandonment. The act of protesting dismissal indicates a desire to maintain employment, not relinquish it. The Court stated in Samarca v. Arc-Men Industries, Inc., that the filing of a complaint for illegal dismissal is inconsistent with the charge of abandonment, for an employee who takes steps to protest his dismissal cannot by logic be said to have abandoned his work.^[14]

The Court also dismissed NASSI’s argument that Valderama voluntarily resigned. **Resignation** requires a clear intent to relinquish one’s position. The Court emphasized that the employer bears the burden of proving voluntary resignation. NASSI failed to present Valderama’s alleged resignation letter, casting doubt on their claim. The Court also found it inconsistent that NASSI would require Valderama to report for reassignment if he had already resigned. This contradiction further weakened NASSI’s defense. In Mobile Protective & Detective Agency v. Ompad^[16] and Mora v. Avesco Marketing Corporation,^[17] the Supreme Court ruled that should the employer interpose the defense of resignation, it is incumbent upon the employer to prove that the employee voluntarily resigned.

NASSI also pointed to Valderama’s withdrawal of his cash and firearm bonds as evidence of his intent to terminate employment. The Court clarified that a prior NLRC ruling cited by NASSI regarding the non-withdrawability of bonds was not a binding precedent in this case, as per Philippine Health Care Providers, Inc. v.  Commissioner of Internal Revenue^[22]. Moreover, the Court reiterated that filing a complaint for illegal dismissal is inconsistent with voluntary resignation. As held by this Court in Valdez v. NLRC, it would have been illogical for herein petitioner to resign and then file a complaint for illegal dismissal. Resignation is inconsistent with the filing of the said complaint.^[23]. The Court underscored the principle that an employee who files a complaint for illegal dismissal is unlikely to have voluntarily resigned.

Ultimately, the Court found that Valderama was placed on “floating status” for more than six months. The established jurisprudence dictates that such a prolonged period without assignment can constitute constructive dismissal. The failure of NASSI to provide Valderama with a work assignment within a reasonable timeframe rendered them liable for constructive dismissal. Consequently, the Court upheld the CA’s decision, which had reinstated the LA’s award of backwages and order of reinstatement in favor of Valderama. Under Article 279 of the Labor Code, 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 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.^[26]

The Supreme Court clarified that if a security agency faces a surplus of security guards due to a lack of clients or projects, it can resort to retrenchment. However, retrenchment must comply with the requirements set forth in the Labor Code. This allows the agency to manage its workforce without incurring liability for constructive dismissal and the associated payment of backwages. By following the proper legal procedures for retrenchment, security agencies can avoid the financial burdens that come with constructive dismissal claims.

FAQs

What is constructive dismissal?	Constructive dismissal occurs when an employer’s actions or inactions make continued employment unbearable for the employee, forcing them to resign or file a complaint. It is considered an involuntary termination of employment.
What does “floating status” mean for a security guard?	“Floating status” refers to the period when a security guard is between assignments and not actively working for a client. During this time, they typically do not receive regular wages or benefits.
How long can a security guard be on “floating status” before it’s considered constructive dismissal?	According to the Supreme Court, a security guard can be on “floating status” for a maximum of six months. Beyond this period, the employer may be liable for constructive dismissal.
Who has the burden of proof in a constructive dismissal case?	In cases involving “floating status,” the employer bears the burden of proving that there were no available assignments for the employee. This requires the employer to demonstrate active efforts to find new placements.
What is the difference between resignation and abandonment?	Resignation is a voluntary act of an employee relinquishing their job. Abandonment requires both absence from work without valid reason and a clear intent to sever the employment relationship, which must be proven through the employee’s actions.
What happens if a security agency has too many guards and not enough assignments?	The security agency can resort to retrenchment, but must comply with the requirements outlined in the Labor Code. This includes providing proper notice and separation pay to affected employees.
What is the employee entitled to if they are constructively dismissed?	An employee who is constructively dismissed is entitled to reinstatement to their former position, full backwages (including allowances), and other benefits from the time of dismissal until actual reinstatement.
Does filing a complaint for illegal dismissal affect a claim of resignation or abandonment?	Filing a complaint for illegal dismissal is generally inconsistent with claims of resignation or abandonment. By filing the complaint, the employee demonstrates an intent to maintain employment, not terminate it.

This case highlights the importance of clear communication and proactive management by security agencies in assigning their guards. Prolonged periods of “floating status” can lead to legal complications and financial liabilities. Security agencies must ensure they can justify any extended delays in assigning guards to new posts and should consider retrenchment when necessary. This ruling serves as a reminder of the employer’s responsibility to protect the rights and welfare of its employees.

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: Nationwide Security and Allied Services, Inc. vs. Ronald P. Valderama, G.R. No. 186614, February 23, 2011