SC - Floating status may constitute illegal dismissal

 

The so-called "floating status" of an employee should last only for a legally prescribed period of time. When that "floating status" of an employee lasts for more than six months, he may be considered to have been illegally dismissed from the service. Thus, he is entitled to the corresponding benefits for his separation.

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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 and to his full back wages, 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.

Thus, it being clearly established that herein petitioner was constructively dismissed, the decision of the Labor Arbiter awarding him back wages and separation pay in lieu of reinstatement, plus the refund of his cash bond and tire deposit, is definitely in order.

FOOTNOTES 

G.R. No. 125028 February 9, 1998R EYNALDO VALDEZ, vs.  NATIONAL LABOR RELATIONS COMMISSION and NELBU SCO, INC.,