Promised Salary Increase After Role Change Not Honored: Legal Remedies Under Philippine Labor Law

Overview

In the Philippines, a salary increase promised in connection with a promotion, lateral transfer, or expanded responsibilities may form part of the employment contract. When an employer fails to honor that promise, the dispute can be framed as a money claim for wage differentials and, in aggravated cases, as constructive dismissal or an unfair labor practice if the facts fit. This article explains the governing legal principles, documentary proof to gather, where and how to file, timelines, computation of monetary claims, defenses commonly raised by employers, and strategic tips.

Legal Foundations

1) Employment contracts and promises of pay

Contracts govern: Employment is contractual. Written terms prevail; oral promises can bind if proven by substantial evidence (e.g., emails, signed memos, HR announcements).
Labor Code with Civil Code suppletory: The Labor Code governs employment; the Civil Code fills gaps (e.g., consent, offer/acceptance, obligations and breach).
Novation/modification: A role change with a promised raise is a contract modification. If the employee assumes the new role in reliance on the promise, non-payment may constitute breach.

2) Wages and non-diminution

Non-diminution of benefits: Established and deliberate employer practices that grant monetary benefits cannot be withdrawn unilaterally. If promotions regularly carry a defined raise and this is consistently observed, withholding the raise can be an unlawful diminution of benefits.
Management prerogative, limited: Employers may redesign work or reassign employees if reasonable, in good faith, and without demotion in rank or diminution in pay/benefits. Assigning higher duties without the corresponding promised pay may violate these limits.

3) Constructive dismissal (when applicable)

Definition: When continued employment becomes intolerable due to demotion, humiliation, or substantial pay/benefit diminution, the employee may be deemed constructively dismissed.
Indicators: Performing higher-position duties for prolonged periods without the promised pay; public announcement of promotion without pay alignment; or retaliation when the employee insists on the raise.

4) Money claims vs. dismissal claims

Money claims: Suits to recover wage differentials, 13th month differentials, premium pay, etc.
Constructive dismissal: If proven, remedies expand to reinstatement (or separation pay in lieu), full backwages, benefits, and potentially damages and attorney’s fees.

What You Can Claim

Salary differential Difference between the promised rate and the actual rate, multiplied by the relevant periods after the role change took effect.
13th month differential The same difference proportionally affects 13th month pay.
Premiums affected by base pay Overtime, night shift differential, holiday and rest-day premiums computed on the correct base pay.
Allowances/benefits tied to rank If the new role includes rank-based allowances (e.g., representation, transportation, communication), and you performed the role, you may claim these if covered by policy or promise.
Damages (when justified)
- Moral and exemplary damages for bad faith or oppressive conduct.
- Attorney’s fees (often 10% of the monetary award) when there is unlawful withholding of wages or when hiring counsel was necessary.
- Legal interest (currently 6% per annum) on monetary awards from the time of judicial or extrajudicial demand until full satisfaction.

Deadlines (Prescription Periods)

Money claims (e.g., wage differentials): 3 years from accrual (typically each unpaid pay period or from when the raise should have taken effect).
Illegal/constructive dismissal: 4 years from the dismissal/constructive dismissal.
Practical rule: File early; each pay period can accrue separately. Don’t wait for “final confirmation” of a raise if you already perform the new role.

Evidence to Gather (Substantial Evidence Standard)

Written proof of the promise: Promotion letters, HR email threads, chat logs, screenshots, memos, job posting with pay band, or CBA provisions.
Proof of role assumption: Updated org charts, performance objectives, tasking emails, meeting invites indicating new authority, access rights granted (systems, approvals), public announcements.
Payroll proof: Payslips, payroll summaries, bank credits.
Policies: Compensation framework, salary grade tables, promotion policies, past practice records.
Contemporaneous demand: Emails formally following up on the promised increase (also anchors legal interest).

Where and How to File

Step 1: Try internal remedies

Written demand to HR citing the promise and computation.
Grievance machinery if you’re unionized; arbitration per CBA.

Step 2: Mandatory conciliation (SEnA)

Single Entry Approach (SEnA) at the DOLE Regional/Field Office or NLRC—file a Request for Assistance (RFA).
A conciliator-mediator will facilitate settlement (e.g., immediate pay adjustment, back pay, cleansed records). If unresolved, you’ll be issued a referral/endorsement.

Step 3A: File a money claim / constructive dismissal case at the NLRC

Venue: Regional Arbitration Branch where you work or reside.
Process: Mandatory conference → position papers → decision by a Labor Arbiter.
Appeal: To the NLRC, then Rule 65 to the Court of Appeals for grave abuse of discretion, and potentially Rule 45 to the Supreme Court on pure questions of law.

Step 3B: DOLE labor standards route (inspections/compliance)

If multiple employees are affected (systemic non-compliance), a DOLE inspection may result in a Compliance Order. This is complementary to, but distinct from, individual NLRC adjudication.

Computation Guide (Illustrative)

Base differential Promised Monthly Basic – Actual Monthly Basic = Monthly Differential. Multiply by number of months unpaid.
13th month differential (Sum of Monthly Differentials for the year) ÷ 12.
Premiums Recompute overtime/holiday/night premiums using the correct base. Difference = premium differential.
Allowances (if rank-tied and promised) Monthly allowance × months unpaid.
Interest 6% per annum on the total, from written demand or date of filing (as jurisprudence may specify) until fully paid.

Tip: Keep a spreadsheet by month, with columns for promised base, actual base, differential, premium impacts, and remarks citing the proof (email date, memo reference).

Common Employer Defenses (and How They’re Rebutted)

“Conditional” promise (subject to budget/board approval/KPIs)
- Rebut by showing the condition was met (e.g., KPI ratings), or that the employer waived the condition by letting you perform the role and publicly treating you as promoted.
“No promotion occurred; only acting capacity”
- Rebut with evidence of de facto promotion: signing authority, supervisory power, inclusion in leadership meetings, public announcements, and duration beyond a reasonable “acting” period.
“Management prerogative”
- Prerogative cannot justify unpaid higher-level work or diminution of benefits. It must be exercised in good faith and without prejudice.
“Company practice not established”
- Show regularity, consistency, and deliberate grant of increases upon role change across time and similarly situated employees.
Quitclaims and waivers
- A quitclaim bars claims only if voluntary, informed, and reasonable in consideration. Lowball settlements or waivers signed under pressure can be invalidated; partial invalidity may still allow recovery of the difference.

Strategic Pathways

If you remain employed: File a money claim for differentials and insist on prospective pay correction. Evaluate whether facts support constructive dismissal—don’t allege it lightly if you intend to stay.
If you already resigned: Resignation doesn’t waive money claims unless clearly and validly waived. You can pursue the differentials and, if resignation was compelled by intolerable conditions, plead constructive dismissal.
If many are affected: Consider multi-complainant cases or union support; systemic evidence strengthens the claim and deters retaliation.
If you received partial payments: You may accept partials under protest and still claim the balance.

Practical Checklist

Create a paper trail: Send a polite but firm written demand summarizing the promise, date of role change, and your computation.
Secure documents: Copies of emails, memos, payslips, policy manuals, org charts, KPI results.
File SEnA: Pursue an early settlement; propose a clear schedule for back pay and salary correction.
Prepare for NLRC: Draft a position paper laying out facts, legal basis, computations, and annexes.
Protect yourself: Document any retaliation. Retaliatory acts can bolster claims for damages or separate violations.
Mind the clocks: Track the 3-year and 4-year prescriptive periods.

FAQs

Q: Is an email from HR enough to prove a promised raise? A: Often yes, especially when combined with proof that you actually performed the higher role. Substantial evidence, not proof beyond reasonable doubt, is required in administrative labor cases.

Q: What if the promise was verbal? A: Corroborate with circumstances: sudden change in duties, team announcements, meeting minutes, and behavior consistent with promotion.

Q: Can I ask for “specific performance” (order them to raise my salary)? A: NLRC primarily awards monetary relief. However, decisions often compel employers to correct the pay rate going forward when the right is established.

Q: Do I risk termination if I file? A: Retaliation is prohibited. If termination or severe sanctions follow your protected assertion of rights, you can pursue illegal dismissal and damages.

Q: I signed a quitclaim. Am I barred? A: Not automatically. Courts scrutinize quitclaims; unconscionable or involuntary waivers can be set aside in whole or in part.

Model Demand Letter (Short Form)

Subject: Implementation of Promised Salary Adjustment for [Role] Dear [HR/Manager], On [date], I assumed the role of [New Role] upon your representation that my monthly basic pay would be ₱[promised rate] effective [effective date]. Since then, I have performed the duties of [New Role] (see attached proof). However, my payslips reflect ₱[actual rate]. I respectfully request payment of ₱[computed differential] covering [period], corresponding 13th month and premium differentials, and prospective correction of my salary to ₱[promised rate] starting [date]. Kindly respond within five (5) business days. Otherwise, I may seek assistance through SEnA and, if needed, file a case to protect my rights. Thank you. Sincerely, [Name], [Position], [Employee No.]

Bottom Line

If you took on a new role on the strength of a promised raise, Philippine labor law gives you actionable remedies: claim wage differentials (and related benefits), seek salary correction, and, when conditions warrant, assert constructive dismissal with full remedies. Act promptly, document meticulously, and pursue SEnA before litigation.