Implications of Floating Status on Employees

Floating status is a prevalent problem among call centers and is the focus of this study. The fact that the Philippine Labor Code does not dwell on this issue is a challenge for managers of organizations involved. The objective of this study is to determine whether floating status as an uncertain employment condition is a moral prerogative of management or is an unlawful act to protect the business interest. Managers of every organization must be endowed with social responsibility, a mandate that leaders and managers must balance their concerns with their tasks and people. Successful managers are praised by the financial stakeholders and loved by their workers. Retrenchment also a tool for reduction may be a legal prerogative for management but the requirements set by the Department of Labor and Employment (DOLE) must be complied with. Otherwise, retrenchment is not an option. Floating status is tantamount to dismissal. Alternative solutions for this type of case are discussed. These are (1) endorsement to other accounts (2) retrenchment; and lastly, (3) agreement to wait without a guarantee of being reinstated or immediate resignation. Retrenchment is the best answer for this type of problem, as it benefits both the company and the people who are displaced. All these processes of worker reduction result in the loss of jobs and income of workers. Separation pay is a must to provide support for displaced employees. In addition, this will give readers an idea of how the management of Business Process Outsourcing (BPO) should consider things before making critical decisions.