Policy on Floating Status

of Outsourced Staff
Policy Number : HR-PP-018
1. Background/Purpose

 iWebmasters’ business model allows

outsourced staff to continue
employment at a set and pre-
determined duration even if they are
not working for any client. This
employment status is called
FLOATING STATUS.
Floating status is defined as a
stage for an outsourced staff
where he is not currently doing
work for any paying client while
still under the active employ of
the company.
There are at least 3 possible reasons
why an outsourced staff is placed on a
floating status :
 LET GO – the client was not happy with the
performance of the staff either because of
attendance/punctuality issues or performance
issue.
 CONTRACT TERMINATION – the client did not
renew agreement after 6 month’s cycle.
 CLIENT SUSPENSION OR TERMINATION DUE TO
NON-PAYMENT – due to client’s non settlement of
invoice/s the company has decided to pull out all
staff under the account.
 Each reason for being on floating
status is to be handled differently.
This paper will provide a clear
policy on how to handle each of the
reasons stated.
2. SCOPE :

 This policy covers all outsourced

employees of iWebmasters.com,
Incorporated.
3. APPLICABLE FORMS AND
DOCUMENTS :
 Addendum to Employment
Agreement
 Clearance Form
 Quit Claim
P O L I C
Y
4.1 Floating Status Because Staff Is Let Go By
The Client

 4.1.1 The employment agreement of all

outsourced staff has provision on outright
termination of employment without notice if the
service is let go by the client due to
attendance/punctuality issues or performance
issues.
 4.1.2 For outsourced staff who were hired prior to
the inclusion of the above provision to the
employment agreement, HR Head should have
asked the staff to sign the “ Addendum to
Employment Agreement “ as soon as first notice
of complaint from the client is received regarding
the staff’s attendance/punctuality or
 4.1.3 After the client has complained with the 3
notices requirement, the staff can already be
removed from the account. Each notice from the
client should be covered by CAN ( Corrective
Action Notice ). The CAN issuance is a shared
responsibility between HR and the staff’s
Immediate Supervisor.
 4.1.4 Operation Head should ask the staff to
report to HR on his last day.
 4.1.5 HR should issue termination letter
addressed to the staff and indicating his home
address.
 4.1.6 The staff has to process his Clearance and
Quit Claim.
 4.1.7 Policies and procedures for resignation
and/or termination should be followed.
4.2 Floating Status Due To Client Agreement
Termination
 4.2.1 Client is required to give 30-days notice of
termination.
 4.2.2 If while the notice is being served the client
requires the staff to report to them and still do
some work, the staff is not yet considered on
floating status.
 4.2.3 If during the 30-days notice the client allows
the staff not to work for them anymore or after
serving the 30 days notice, the staff is required to
report to Recruitment Department and is already
considered on Floating Status.
 4.2.4 All computing access, e.g. email account,
messenger account and active account will be
suspended while the staff is on floating status.
 4.2.5 The staff will be asked to consume all his
available Sick Leave and Vacation Leave credits
as soon as he is on floating status.
 4.2.6 While the staff is still serving the 30 days
notice with the client or already on paid leave of
absence, Recruitment Department will start
selling him to possible clients for new
assignment.
 4.2.7 After consuming all leave credits and the
staff has not found a client yet, he will be asked
to report back to the office to help out in any
administration function until 30 days floating
status is over.
 4.2.8 During the 30 days floating status the staff
will continue to enjoy all benefits he is entitled to
including but not limited to his full salary
provided days worked or considered as leave with
pay, earning of leave, and cafeteria of benefits,
 4.2.9 If the anniversary date of the staff falls on
the date while he is still on floating status, his
performance will still be appraised but the
reasons for his being on floating status should be
given heavy weight.
 4.2.10 If after the 30 days floating status, the
staff was still unable to land on a new
assignment, the staff will be placed on a
maximum of 60 days leave without pay during
which Recruitment Department will still continue
to find new client for the staff.
 4.2.11 The staff will be given two options to
continue:

4.2.11.1 OPTION 1
4.2.11.1.1 Last pay will be released on
the 30th day of the floating status but the staff will
no longer be entitled to all benefits.

4.2.11.1.2 If prior to the lapsed 60 days

leave without pay, the staff landed on a new
assignment, his employment tenure will reset.
 4.2.11.2 OPTION 2

4.2.11.2.1 Last pay will be released

after the 60 days leave without pay.
4.2.11.2.2 During the 60 days leave
without pay, the staff will no longer be entitled to
all benefits except for Life Insurance and Health
card ( excluding dependents ) if he is already
covered prior to his floating status.
4.2.11.2.3 If prior to the lapsed 60 days
leave without pay, the staff landed on a new
assignment, his tenure will be considered
continuous and his other benefits entitlement will
automatically resume.
 4.2.12 If the 60 days leave without pay has
already been consumed and the staff has not
found a new assignment yet, the employment will
be considered terminated. HR is responsible to
send a letter of termination to the employee via
registered mail to the latter’s residential address.
Recruitment shall remove the staff’s profile in the
website as soon as the termination letter was
sent out.
 4.2.13 If the staff still wishes the company to find
a client for him, Recruitment Department will
continue to do so.
 4.2.14 If the staff finally found a client after 60
days leave without pay status, the staff will be
considered re-hired and his starting date will
reset.
4.3 FLOATING STATUS BECAUSE OF CLIENT
ACCOUNT SUSPENSION OR TERMINATION
DUE TO NON PAYMENT
 4.3.1 As soon as decision and approval has been
reached to suspend client’s account due to non
payment of invoice, staff is immediately pulled
out from the account and is not allowed to report
or work for the client.
 4.3.2 The staff will still be required to report to
the shift he belongs for a period of one week to
give the client enough time to settle unpaid
invoices.
 4.3.3 If after one week, the client still has not
settled the payment, the staff will be required to
report to Recruitment Department and will
already be considered on Floating Status.
 Paragraph 4.2.4 to 4.2.14 of this policy paper will
be followed.
5. EFFECTIVITY

 This policy paper shall take effect immediately

after approval and should be reviewed annually
or as need arises.