Is it possible to have "Log Work" under "More Actions" even when the issue is not assigned to me?

I would like to be able to log work without assigning the issue to me.

In some cases, some developers have resolved an issue and sent it to testing without logging time worked against it. I would like the developers to be able to log work without re-assigning the issue back to themselves. Is it possible? How can I configure that?

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You need to check with the Time Tracking Permission in your project Permission Scheme. Granting yourself the permission will let you log the work against issues without assigning the issue to yourself as well as edit the worklogs already logged against issues by the other users.

Hope this helps!

Specifically check the "Work On Issues" permisson.

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