This is taken from the file I attached above and explains it better than i can. But a floating earth is basically an earth connection at a socket on the generator that is not referenced to the neutral of the generator winding.
LOW -VOLTAGE, SINGLE-PHASE PORTABLE AND TRANSPORTABLE GENERATORS
7 These are generally machines ranging in size from 0.3 to 10 kVA. Winding connections are brought out to a socket, in which the third or protective conductor socket tube is usually connected internally to the generator enclosure but may in some cases be referenced internally to one pole of the generator winding. A voltage-selector switch may be fitted to enable 240 V or 120 V outputs to be obtained from BS 4343 sockets of the appropriate type.
8 Where there is no path for earth fault currents to return to the 'separated' winding of a generator (cf the secondary winding of an isolating transformer), it is acceptable for these small generators and their loads to be run without deliberately connecting either external metallic parts or one pole of the single-phase electrical system to earth, subject to the following conditions.
(1) Only cables which are suitable for their environmental exposure should be used to connect the generator to its load. The use of PVC-insulated and sheathed cables with flexible, braided wire armour and a PVC over-sheath is recommended.
(2) The generator enclosure should be bonded to all other metallic enclosures which form part of the system (eg to the metallic braid of flexible cables and the load enclosures if metallic), by correct termination of the protective conductors and braids.
(3) If flexible cables without a continuous metallic braid are used, suitable 3-core cables should be selected with an extruded over-sheath capable of high resistance to abrasion or damage.
(4) All cables require frequent inspection. Users should be alert to risks which arise from damaged cables which should be replaced and not repaired, and from
