Pay Entitlements During Employee Redeployment in the Philippines

This practical guide explains what happens to pay and benefits when a private-sector employee in the Philippines is “redeployed” (reassigned to a different role, team, worksite, schedule, or status) without ending the employment relationship. It’s general information, not legal advice.

1) What “redeployment” means (and what it isn’t)

Redeployment / Transfer / Reassignment Movement to a different job, location, team, or schedule within the same employer. It can be temporary or permanent, full-time or partial.
Secondment You remain employed by your company but are assigned to work for an affiliate or client under a secondment agreement. Pay obligations and control must be clear to avoid “labor-only contracting” issues.
Temporary suspension / “floating status” No work is available for reasons like business slowdown; the employment tie remains, but the employee may be off-work for up to six (6) months. Beyond that, the employer must recall the worker or legally end employment and pay separation.
Termination for authorized causes (redundancy, retrenchment, closure, etc.) This is not redeployment; it ends employment and triggers statutory separation pay (see §10).

2) Core legal guardrails that govern pay during redeployment

Security of tenure & good-faith transfers. Employers may transfer employees as a management prerogative only in good faith and without demoting rank or using transfer as punishment or to force resignation.
No diminution of benefits. Employers cannot unilaterally reduce wages or benefits that employees already enjoy by law, by contract, by CBA, or by long, consistent company practice—unless a lawful exception applies (e.g., benefit is clearly conditional and the condition no longer exists).
Minimum-wage compliance by place of work. The employee’s pay may not fall below the applicable Regional Wage Order where the work is actually performed. If redeployed to a region with a higher minimum, pay must at least meet that higher minimum for work done there. Moving to a lower-minimum region does not justify cutting an agreed basic pay without valid, voluntary employee consent.
Equal pay for equal work / anti-discrimination. Pay decisions tied to redeployment must not discriminate based on protected traits and must be anchored in bona fide business needs.
Telecommuting parity. If redeployed to remote/WFH, benefits and pay must be at least equivalent to on-site comparators, subject to what the law calls “reasonable standards” mutually agreed in a telecommuting policy.

3) What happens to basic salary?

Same or substantially equivalent role: Keep the same basic rate and grade. Lateral redeployments should not cut basic pay.
Different role at a lower grade/pay band: Any reduction needs clear, voluntary, written consent from the employee (ideally with consideration, e.g., redeployment allowance) and must not violate minimum-wage rules or a CBA. Imposed pay cuts risk a constructive dismissal claim.
Pay structure changes (monthly vs. daily-paid): Employers shouldn’t switch classification just to lower pay. If the nature of work truly changes, recalibrate pay lawfully and transparently.

4) What happens to allowances and benefits?

Benefits that are “basic” or integrated into wage (e.g., across-the-board wage increases, integrated COLA): generally must be preserved.
Function- or condition-based allowances (e.g., on-call premium, offshore premium, project site allowance, per-diem): If redeployment removes the condition (no more offshore work, no more on-call duty), the corresponding conditional allowance can stop prospectively. Document the basis and timing.
Location-based allowances (e.g., hardship/posting): If moved to a new location with a different allowance scheme, adjust in line with the new location’s policy—but avoid a net cut if the allowance had ripened into a company practice unrelated to location.
Transportation / meal subsidies: If these are company practice or in a CBA, preserve them unless the underlying condition changes (e.g., employer starts providing shuttle meals). Again, document the rationale.

5) Hours-of-work premiums that may change with redeployment

Redeployment often changes schedule or rest days. The following statutory premiums are due based on actual work performed:

Night-shift differential: at least 10% of the regular wage for each hour worked between 10:00 p.m. and 6:00 a.m.
Overtime pay (OT): Work beyond 8 hours/day generally earns an OT premium (commonly +25% on ordinary days; +30% when work falls on a rest day or special day). Computations stack with holiday/rest-day rules.
Rest-day work: typically +30% of the basic rate for the first 8 hours worked on the scheduled rest day (higher if the rest day coincides with a special/regular holiday).
Holiday pay:
- Regular holidays: unworked—paid if eligible; worked—200% for first 8 hours (higher with OT/rest-day overlays).
- Special (non-working) days: worked—130% (or 150% if it falls on a rest day); unworked—generally no pay unless company practice/CBA provides otherwise.

Exact formulas can vary with CBAs and DOLE circulars. Always apply the more favorable rule to the employee.

6) “No work, no pay,” floating status, and partial work

“No work, no pay” is the default for hours/days not worked unless the employee is monthly-paid under a scheme that already covers certain unworked days (e.g., regular holidays) or a CBA/policy says otherwise.
Floating status (temporary off-work) If legitimately placed on off-detail/temporary lay-off, wages are generally not due during the suspension up to six (6) months. Before or upon the 6-month mark, the employer must recall the employee to suitable work or terminate under an authorized cause with proper separation pay. Prolonged, indefinite “floating” risks constructive dismissal.
Flexible work arrangements (FWAs) (e.g., reduced workdays/hours, rotation, compressed workweek): Pay may be proportionately reduced for the hours not worked if the FWA is lawful, time-bound, documented, and consensual, and the employer observes DOLE reporting where required.

7) 13th-month pay and other statutory benefits

13th-month pay (PD 851): At least 1/12 of the basic salary earned in the calendar year. Redeployment affects it only insofar as it changes the basic salary actually earned. Allowances and premiums (OT, differentials) are generally excluded unless integrated into “basic.”
Service Incentive Leave (SIL): Minimum 5 days/year for covered employees after one year of service; accrual continues despite redeployment (subject to statutory coverage/exemptions and company/CBA terms). Unused SIL is commutable to cash.
Government contributions (SSS, PhilHealth, Pag-IBIG) and withholding tax: These track actual compensation; if redeployment changes monthly pay, statutory deductions and employer shares adjust accordingly (within the agencies’ rules).
Leaves (maternity, paternity, solo parent, violence-against-women leaves, etc.): Redeployment cannot curtail statutory leave rights. Pay during such leaves follows the governing law (e.g., SSS-covered maternity benefits; employer-paid paternity leave).

8) Cross-regional redeployments (NCR vs. other regions)

Regional minimums apply where the work is done.
- If redeployed to a higher-minimum region, raise pay to at least that minimum for work there.
- If redeployed to a lower-minimum region, you cannot unilaterally slash basic pay; preserving the current rate avoids diminution and morale issues.
Field/multi-site workers: If work spans regions, ensure the effective daily/hourly rate meets or exceeds the highest applicable minimum or adopt a compliant, documented pay rule.

9) Secondment to affiliates/clients

Get express employee consent if day-to-day control shifts to the host or if any material term changes (pay, hours, location).
Spell out who pays what (basic, premiums, allowances, travel), who disciplines, and who recalls.
Keep secondment time-bound and documented to avoid “labor-only contracting” or joint-employment surprises.

10) If redeployment fails and termination follows: separation pay map

If, after genuine attempts at redeployment, the job still disappears and the employer lawfully ends employment for an authorized cause, separation pay typically is:

Redundancy or installation of labor-saving devices: At least 1 month pay per year of service (or 1 month pay, whichever is higher).
Retrenchment to prevent losses or closure/cessation not due to serious losses: At least 1/2 month pay per year of service (or 1 month pay, whichever is higher).
Closure due to serious business losses: No separation pay required if losses are duly proven.
Disease (employee found unfit and cannot be accommodated): At least 1/2 month pay per year of service (or 1 month pay, whichever is higher).

“Per year of service” is typically fraction-rounded to at least six (6) months = 1 year. Employers must also serve 30 days’ prior written notice to the employee and DOLE for authorized-cause terminations.

11) Documentation employers should prepare

Redeployment memo/letter detailing: new role, supervisor, worksite or remote terms, schedule/rest days, effective date and duration (if temporary), pay preservation or lawful changes, and applicable allowances.
Employee consent for any material change (especially pay or grade).
Updated JD & pay structure; reflect conditional allowances (start/stop) with dates.
Telecommuting policy / FWA agreement where applicable, including performance metrics and timekeeping.
DOLE filings where required (e.g., FWAs, authorized causes).
Safety/OSH briefings for new work environments or shifts.

12) Red flags that risk claims

Pay cut or benefit withdrawal without a clear, lawful basis or employee consent.
Transfers to remote or hazardous worksites without reasonable support (travel, housing, PPE) when promised or required.
Indefinite “floating status” beyond 6 months.
Using redeployment to bypass due process, union rights, or to target specific employees.
Secondments that look like labor-only contracting (host controls the work; secondee does core business; no real contractor capitalization).

13) Practical scenarios

Schedule change to nights: Employee keeps basic pay; now earns night-shift differential and any applicable OT; meal/transport allowances adjust only if policy/condition requires.
Move from Project A (with site allowance) to HQ: Site allowance may end prospectively if it’s truly site-contingent; other benefits are preserved.
Cross-posting from Region X to NCR: If current rate is below NCR minimum, raise pay to the NCR minimum for work there; do not cut pay if later reassigned back to Region X unless lawfully agreed.
Temporary lack of work (3 months): Employee on floating status; no wages due absent work; recall or valid termination (with separation pay, if applicable) by month 6.

14) Quick compliance checklist (HR/Legal)

Is the redeployment in good faith and not a demotion?
Will basic pay be preserved? If not, do you have written, voluntary consent and a lawful basis?
Are regional minimums and premium pay rules satisfied under the new schedule/location?
Are conditional allowances being adjusted prospectively with reasons documented?
If WFH/FWA, are agreements time-bound, clear, and (where required) reported to DOLE?
If floating/off-detail, is the timeline tracked to avoid exceeding 6 months?
For secondments, do you have tripartite documentation clarifying pay, control, and recall?
Have you considered CBA terms and company practice (to avoid diminution)?
Have you provided a written memo and obtained any needed consent?

Final note

Philippine labor rules evolve via DOLE issuances and court decisions. When a redeployment will change pay or grade, get written consent, keep changes prospective, and document the business necessity. For high-stakes moves (cross-region postings, long floating status, or secondment), consult counsel to stress-test compliance and calculations.