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Is NO WORK NO PAY policy legal?

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1 Is NO WORK NO PAY policy legal? on Wed May 25, 2016 3:52 pm

indispensable


Arresto Menor
I am a IT consultant in a software company. As IT consultants we are deployed or assigned to various clients. In cases that our project ends, we are placed in bench to await our next project. I am a regular employee of the software company however due to the lack of projects I was informed that I will be placed on NO WORK NO PAY or temporary lay-off to alleviate further loss of the company. This will not to exceed 6 months and will be lifted when a project is available.

Is this legal? Thanks!

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2 Re: Is NO WORK NO PAY policy legal? on Wed May 25, 2016 4:22 pm

lukekyle


Reclusion Perpetua
yes it is legal. After 6 months of no work you can file for constructive dismissal.

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3 Re: Is NO WORK NO PAY policy legal? on Wed May 25, 2016 5:43 pm

council


Reclusion Perpetua
Yes, provided it is permitted under circumstances for a period of not more than six (6) months. Beyond this period, floating status becomes constructive dismissal which entitles the employee to separation pay (Phil. Industrial Security Agency Corp. vs. Virgilio Dapiton and NLRC, 320 SCRA 124)

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4 Re: Is NO WORK NO PAY policy legal? on Wed May 25, 2016 8:29 pm

indispensable


Arresto Menor
Thanks!

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5 Re: Is NO WORK NO PAY policy legal? on Tue May 31, 2016 7:02 pm

indispensable


Arresto Menor
Another question, if we are to be placed in temporary lay-off status, should we be notified 1 month before the effective date of the temporary lay-off?

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6 Re: Is NO WORK NO PAY policy legal? on Wed Jun 01, 2016 1:42 am

lukekyle


Reclusion Perpetua
no, from what i remember that only applies if permanent ang layoff

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7 Re: Is NO WORK NO PAY policy legal? on Wed Jun 01, 2016 6:13 am

council


Reclusion Perpetua
indispensable wrote:Another question, if we are to be placed in temporary lay-off status, should we be notified 1 month before the effective date of the temporary lay-off?

Even your company won't be able to tell if a client wants to pull out the next day and unless there is an agreement for prior notice between them, there is also no way to give you a 1 month notice.

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