This paper is concerned with an employee scheduling problem involving multiple shifts and work centers, where employees belong to a hierarchy of categories having downward substi- tutability. An employee at a higher category may perform the duties of an employee at a lower category, but not vice versa. However, a higher category employee receives a higher compensation than a lower category employee. For a given work center, the demand for each category during a given shift is fixed for the weekdays, and may differ from that on weekends. Two objectives need to be achieved: The first is to find a minimum-cost workforce mix of categories of employees that is needed to satisfy specified demand requirements, and the second is to assign the selected employ- ees to shifts and work centers taking into consideration their preferences for shifts, work centers, and off-days. A mixed-integer programming model is initially developed for the problem, based on which a specialized scheduling heuristic is subsequently developed for the problem. Computational results reported reveal that the proposed heuristic determines solutions proven to lie within 92-99% of optimality for a number of realistic test problems.