Can HR Assign the Duties of a Resigned Employee Without Additional Pay? (Philippine Labor Law)

This article provides general information on Philippine labor law. It is not a substitute for legal advice tailored to a specific case.

Short answer

Yes, but with limits. An employer may temporarily redistribute a resigned employee’s workload to remaining staff without automatically increasing pay, provided the reassignment is made in good faith, stays within the bounds of managerial prerogative, does not reduce rank or existing benefits, and does not violate hours-of-work rules. Additional pay becomes mandatory if the reassignment causes overtime, night work, rest-day/holiday work, or if a CBA, company policy, contract, or established practice grants acting or assignment differentials. Different rules also apply to managerial staff who are generally exempt from hours-of-work protections.

Legal foundations at a glance

Managerial prerogative to direct work: Employers may reassign duties and prescribe reasonable work methods in good faith and for legitimate business reasons, as long as there is no demotion or diminution of benefits.
No diminution of benefits (Labor Code, Art. 100): Existing wages and benefits cannot be reduced unilaterally. Adding tasks does not by itself violate this, but any reduction in pay/benefits or withholding earned premiums would.
Hours of work (Labor Code, Art. 82–90 framework):
- Normal hours: 8 hours/day.
- Overtime pay: at least 25% premium for work beyond 8 hours on ordinary days; higher if on rest days/holidays.
- Night shift differential: at least 10% of regular wage for work between 10:00 p.m. and 6:00 a.m.
- Rest day/special/regular holiday premiums apply when triggered.
Exemptions from hours-of-work rules: Managerial employees and members of the managerial staff, field personnel (whose hours cannot be determined with reasonable certainty), and certain other categories are not covered by the 8-hour/overtime/night differential rules.
Constructive dismissal doctrine: A reassignment that is unreasonable, punitive, impossible, or effectively a demotion (e.g., substantial loss of rank, pay, or dignity) may be unlawful.
Contracts, company policy, CBA, and proven practice: These can create enforceable rights to acting pay/allowances beyond statutory minimums.

When no additional pay is required

Same rank, same pay, no premium-triggering hours Temporarily handling extra tasks within the employee’s competence and job family—and still working only regular hours on ordinary days—does not automatically entitle the employee to extra pay under the Labor Code.
Good-faith reallocation during transition Covering gaps while the company is recruiting or redistributing work is generally a valid exercise of managerial prerogative, if not abusive.
Exempt categories Managerial employees (and genuinely managerial staff) are typically not entitled to statutory overtime/night/rest-day premiums. (They may still receive allowances if a policy/CBA so provides.)

When additional pay is required

Overtime If the temporary assignment causes work beyond 8 hours/day, overtime premiums apply (at least +25% on ordinary days; +30% or more on rest days/holidays depending on the scenario).
Night work Work between 10:00 p.m. and 6:00 a.m. requires at least +10% night shift differential (unless exempt).
Rest day, special day, or regular holiday work Premiums apply as prescribed by law and DOLE issuances (stacked appropriately when multiple conditions coincide).
Contractual/CBA/Policy commitments If a CBA or written policy grants acting pay, step-up pay, or assignment differentials when assuming higher duties, the employer must honor it. The same is true for a consistent and deliberate company practice over time.

Key boundaries and risk areas

No demotion or diminution You can increase tasks, but you cannot reduce wages/benefits or strip rank. A “title in name only” while loading markedly higher responsibility with inferior conditions can be attacked as constructive dismissal.
Reasonableness and proportionality Doubling workload indefinitely with unattainable KPIs, or imposing tasks clearly outside the employee’s skill set without training/support, may be evidence of bad faith.
Health and safety Overwork that jeopardizes safety or violates OSH standards is unlawful. Employees retain the right to a safe and healthy workplace.
Discrimination Reassignments must not be based on protected characteristics (sex, age, disability, union membership, etc.) or used to target a specific worker.

Special notes on “acting” or “concurrent” roles

No statute automatically mandates “acting pay.” Unless a CBA, policy, contract, or established practice provides for it, the law does not by itself require an allowance for acting/concurrent capacity.
But watch the triggers If acting duties extend hours, change schedules into nights/rest days/holidays, or move the employee into tasks that are not exempt from hours-of-work rules, then premiums kick in.
Duration matters Temporary coverage is easier to justify. Open-ended or permanent “temporary” assignments can undermine the good-faith rationale and invite disputes if no adjustment is made.

Practical guidance

For employers/HR

Document the temporary reassignment Issue a memo stating the business reason, scope, expected duration, and that rank and base pay remain unchanged (unless improved). Clarify how overtime/rest-day work will be tracked and paid.
Audit hours and premiums Ensure timekeeping captures actual hours so overtime/night/rest-day/holiday premiums are computed and paid when due.
Check your CBA/policies/practice If you’ve historically paid acting allowances, be consistent or risk a non-diminution claim.
Train and support Provide short-term training or job aids if the coverage involves unfamiliar systems or compliance-sensitive tasks.
Set a review date Revisit after, say, 30–90 days to decide whether to hire, redistribute permanently (with corresponding compensation/adjustments), or end the interim setup.

For employees

Clarify scope and hours Ask for a written memo detailing duties and expected hours. Keep your own timesheet to validate any premium pay.
Identify triggers for extra pay If duties push you into overtime, nights, rest days, or holidays, you’re generally entitled to statutory premiums (unless you are truly managerial or otherwise exempt).
Check your CBA/policies You may be entitled to acting allowances or assignment differentials under company rules or past practice.
Escalate problems properly If the reassignment feels punitive or impossible, raise it internally (HR/Grievance) and, if unresolved, consider DOLE Single-Entry Approach (SEnA) for conciliation or seek legal counsel.

FAQs

1) Can HR compel me to take on the resigned colleague’s core duties? Often, yes, if the tasks are reasonably related to your position and the change is done in good faith. Refusal may be insubordination if the order is lawful and reasonable. However, you cannot be forced to work unpaid overtime (premiums apply when triggered), and you can challenge assignments that are punitive or unsafe.

2) If I cover a higher position, must I get the higher salary? Not automatically. Unless a CBA/policy/contract or company practice says so, the law does not mandate acting pay. But any premium pay for hours actually worked remains due.

3) What if I’m salaried—do overtime rules still apply? Salary basis does not negate overtime unless you are exempt (e.g., managerial or genuine field personnel). Many “salaried” employees are non-exempt and still entitled to premiums when hours/schedules trigger them.

4) How long can “temporary” last? There’s no fixed statutory limit, but indefinite “temporary” assignments can signal bad faith. Periodic review and transparency help avoid disputes.

5) Can HR split a resigned employee’s duties across multiple staff? Yes, if done fairly and without diminishing any employee’s existing wages/benefits, and with proper payment of any triggered premiums.

Compliance checklist (Philippine context)

Written memo explaining reason, scope, duration, no demotion/diminution.
Timekeeping aligned to capture OT/night/rest-day/holiday work; premiums paid when due.
CBA/policy/practice reviewed for acting/assignment pay commitments.
Health & safety and workload reasonableness assessed.
Review date scheduled; recruitment or permanent restructuring plan in motion.
Non-discrimination and data-privacy considerations observed.

Key takeaways

Redistribution of duties after a resignation is generally lawful under managerial prerogative.
Extra pay is not automatic, but becomes mandatory when hours-of-work premiums are triggered or when CBA/policies/practice require it.
Avoid demotion, diminution, and punitive or unreasonable assignments to stay within the law.
Put everything in writing and track hours to prevent disputes.

If you want, I can draft a short temporary duty assignment memo (one for HR and one for employees to acknowledge) tailored to your situation.