More than 400 employees of Wipro Cebu in the Philippines are facing an unpaid floating status for up to six months, further compounding the impact of a 6.9-magnitude earthquake and Typhoon Kalmaegi (also known as Typhoon Tino), which hit the province in recent weeks.
Workers said the timing was devastating, with many families still repairing homes and restoring utilities after the disasters. Labor groups warned that the temporary layoffs add to the emotional and financial strain on an already battered workforce.
The BPO Industry Employees’ Network (BIEN) Cebu said the situation highlights ongoing concerns about job security in the country’s outsourcing sector.
“It’s hard for them,” BIEN-Cebu chairperson Kyle Enero told Rappler in Cebuano. “The goal of their layoffs is clear: to cut the length of service, forcing agents to resign so they can provide less pay and benefits.” He added that the move signals a prioritization of profits as Cebu continues to recover from widespread damage.
Government reminds companies of disaster obligations
On Nov. 15, the Department of Labor and Employment (DOLE) reminded employers to comply with Labor Advisory No. 15, which requires companies to implement safety and disaster-preparedness measures. These include engineering safeguards, business continuity plans, and protection of facilities and utilities.
DOLE reiterated that the “no work, no pay” principle applies during work suspensions unless more favorable company policies or collective bargaining agreements exist. The advisory does not expressly prohibit floating status, but labor officials emphasized that employers must mitigate risks and ensure safe working conditions, especially in disaster-affected communities.
Workers question performance claims
BIEN-Cebu said many affected employees had been with Wipro for more than six years and felt blindsided by the announcement. Workers disputed the company’s claim that the layoffs were based on performance, arguing that even top performers were placed on floating status.
“They say it’s really unfair because the reason given for selecting them for the layoff was their performance, even though performance isn’t actually an issue,” Enero said.
One employee told BIEN that they were placed on floating status without explanation, later put on a performance improvement plan despite already being in temporary layoff status, and then included again in subsequent cuts.
Labor advocates said such patterns could constitute constructive dismissal, noting that floating status has been used at times to pressure employees into resigning.
Cebu BPO executives indicted in investment scam
In a separate development affecting Cebu’s outsourcing sector, the Department of Justice has indicted two executives of Fergus Inc., a Cebu-based company registered as a BPO provider, for allegedly soliciting illegal investments.
Company president Jefferson Acas Jr. and corporate secretary and CFO Rosemarie Mayorga face charges under the Securities Regulation Code and the Cybercrime Prevention Act. The case stems from complaints filed by Australian clients who alleged they were defrauded.
Prosecutors said Fergus marketed nonexistent e-books and software while operating an unregistered investment scheme that promised passive income through an automated trading machine, which required a minimum investment of $250.
The Securities and Exchange Commission clarified that while Fergus is registered as a BPO company, it is not authorized to solicit or pool investments from the public.
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Esmael, L. (2025, December 3). Cebu BPO execs indicted for illegal investment solicitation. Philippine Daily Inquirer. Retrieved from https://business.inquirer.net/561813/cebu-bpo-execs-indicted-for-illegal-investment-solicitation
BIEN Pilipinas. (2025, November 19). BIEN-CEBU DEMANDS JUSTICE FOR FLOATING WIPRO WORKERS. Facebook. Retrieved from https://www.facebook.com/BIENPilipinas/posts/bien-cebu-demands-justice-for-floating-wipro-workerscebu-city-philippines-after-/1159354636299137/
