Higher duties allowance: Overview, definition, and example
What is a higher duties allowance?
A higher duties allowance is an additional payment or compensation provided to an employee when they are temporarily assigned to perform duties that are beyond their usual job responsibilities or at a higher level of responsibility. This allowance is typically given when an employee takes on a more senior role or tasks in the absence of a higher-level employee or during a temporary reassignment. The purpose of this allowance is to compensate the employee for the extra responsibilities and workload they are taking on.
For example, an employee might receive a higher duties allowance if they are temporarily promoted to cover a manager’s duties while the manager is on vacation or leave.
Why is a higher duties allowance important?
A higher duties allowance is important because it ensures that employees are fairly compensated for taking on additional duties that exceed their standard job description. It recognizes the added value and effort required to perform tasks or assume responsibilities at a higher level. This allowance also serves as an incentive for employees to step into higher roles temporarily, which can help companies maintain operations when key employees are absent or unavailable.
For businesses, offering a higher duties allowance can improve employee morale and loyalty, as it demonstrates that the company values the extra effort and contributions made by employees in such situations. It also helps maintain productivity and continuity in operations without the need for permanent promotions.
Understanding higher duties allowance through an example
Imagine an office worker, Sarah, who is usually responsible for administrative tasks. While her manager is on extended leave, Sarah is asked to take on the manager’s duties, including overseeing a team and making higher-level decisions. In recognition of the increased workload and responsibility, the company provides Sarah with a higher duties allowance for the duration of her temporary role as manager.
In another example, a senior technician is asked to temporarily manage a project while the project manager is unavailable. The technician, who typically only handles technical tasks, is given a higher duties allowance to reflect the added responsibility of managing the project’s progress, budget, and team coordination.
Example of a higher duties allowance clause
Here’s how a clause related to a higher duties allowance might appear in an employment contract:
“In the event that the Employee is temporarily assigned to perform duties at a higher level of responsibility than their current role, the Employee shall be entitled to a higher duties allowance of [insert amount or percentage], effective from the commencement of the assignment until the completion of the temporary duties.”
Conclusion
A higher duties allowance is an additional payment given to employees who temporarily take on higher-level responsibilities or tasks. It compensates them for the extra workload and recognizes their contribution to the organization during a temporary role shift. Offering a higher duties allowance is an effective way for businesses to maintain smooth operations and retain employees' motivation, ensuring that those who step up are fairly rewarded for their increased responsibilities.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.