CEBU, Philippines – Just weeks after a 6.9-magnitude earthquake and Typhoon Tino (Kalmaegi) devastated communities across Cebu province, over 400 business process outsourcing (BPO) workers were notified they would be placed on floating status, a temporary layoff with no pay and no option to seek similar work for up to six months.

The notice from Wipro Cebu arrived as many were still repairing damaged homes and dealing with disrupted utilities, compounding the strain of the back-to-back disasters.

BPO Industry Employees’ Network (BIEN)-Cebu chairperson Kyle Enero told Rappler that the layoffs have further heightened employees’ anxieties, particularly among long-serving workers.

“Lisod sa ilaha jud,” said Enero. “Klaro ang tumong sa paglay-off sa ilaha: pagputol sa length of service nga mapugos og resign ang mga ahente aron mas gamay ilahang mahatag nga bayad ug benepisyo. Sa ingon ani nga pamaagi, gipakita sa kumpanya nga pagpasiguro sa dakong ginansya gihapon ang prayoridad.” 

(It is really difficult for them. The purpose of the layoff is clear: to cut the length-of-service of employees, forcing agents to resign so the company can provide lower pay and benefits. This way, the company shows that securing large profits remains its top priority.)

This adds to ongoing labor and safety concerns in Cebu City’s BPO sector, where employees were reportedly forced to work during the September 30 earthquake despite building damage, with some threatened for opting to evacuate and others sent back to production floors without proper safety checks.

Compensation issues

Several of the affected Wipro Cebu employees have been with the company for six years or more, and many of them found the layoff notice completely unexpected. 

Enero told Rappler that for long-serving workers, the announcement “felt like a form of betrayal after years of service.”

Workers also questioned Wipro’s claim that the layoffs were due to performance issues since some of the affected employees are among the company’s top performers, making the decision appear arbitrary.

“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, as some top performers were also included,” said Enero in Cebuano.

He recounted the case of a worker who was initially placed on floating status arbitrarily and later subjected to a performance improvement plan for allegedly poor performance, despite already being on floating status at the time. He added that the same employee has now been included in Wipro’s latest round of floating layoffs.

“This only exposes that the BPO industry practice of placing agents on floating status, combined with a high attrition rate, puts workers in a precarious situation where their livelihood is directly affected, often forcing them to leave the company — not by choice, but due to circumstances — which essentially amounts to constructive dismissal,” said Enero.

He added that during his conversations with workers, their main concern was their benefits and fair compensation, particularly as many are still recovering from the recent typhoon and earthquake. 

Enero explained that the floating status system is a new form of cost-cutting in the BPO industry, designed to pressure employees to resign so companies can avoid paying benefits that increase with length of service. 

“While floating status is legal, it does not make it moral or ethical,” he said. 

Rappler has reached out to Wipro Cebu for comment. This story will be updated once we get a response.

Rights under threat

In a statement, BIEN-Cebu condemned Wipro’s recent actions, describing the placement of over 400 employees on floating status as an attack on workers’ rights. 

“While Wipro management has initiated a reprofiling process, they remain deaf to workers’ requests for separation pay and the option to exit the company,” the network said. 

BIEN-Cebu also urged the Wipro management to grant severance pay to employees placed on floating status, honor requests from workers who wish to be reprofiled to other roles, and show genuine compassion for those still recovering from recent calamities. 

Enero recently filed a request for dialogue with the Department of Labor and Employment-Regional Office VII (DOLE-VII) to discuss updates on inspections following the September 30 earthquake and address the numerous cases of temporary layoffs in the BPO sector. – Rappler.com

Marjuice Destinado is a senior political science student at Cebu Normal University (CNU) and an alumna of the Aries Rufo Journalism Fellowship of Rappler for 2025.