Is it legal to demote an employee?

There may be a clause in the employment contract that allows the employer to demote the employee in certain circumstances, for example as a disciplinary sanction, or a general clause allowing it to change the employee’s terms and conditions.

How should we handle employee demotions?

Be respectful of the employee during the demotion discussion, keeping in mind that the organization is taking this step because of the desire to retain the employee and the expectation that he or she will be successful.

On what grounds can you demote an employee?

Employers demote employees fairly frequently. This could be for any number of legitimate, and illegitimate, reasons including:

  • The boss dislikes the employee.
  • The employee has broken a rule.
  • The employee’s work performance is unsatisfactory.
  • The boss wants to create a vacancy for somebody else.

Can my employer demote me for no reason?

As a general rule, California’s at-will employment scheme allows employers to fire employees for just about any reason, or for no reason at all. The same applies to demotions or other alterations of an employee’s position.

When should you demote an employee?

Employee demotions occur for various reasons, including:

  • Poor job performance.
  • The position being eliminated.
  • Disciplinary action (for conduct issues).
  • The organization being restructured.
  • Seeking a better fit for the employee’s skill set.
  • Changing business needs.
  • Voluntary decision by the employee.

Do you have to accept a demotion?

Whether your demotion was wrongful or not, when you apply for future jobs, you will need to be prepared to acknowledge the situation. Don’t sell yourself short. Fortunately, there is no need to use the word “demotion” on your resume or within a cover letter.

Can I be demoted due to restructure?

During a restructure an employer may offer to demote an employee as an alternative to a dismissal for reason of redundancy. Depending on the circumstances, a demotion may be beneficial to both parties.

What is the law on demotion?

If there is no clause in your contract allowing your demotion, then your employer would generally need your consent to demote you. This would usually involve discussing the proposed changes to your terms with you, including any changes in your role, responsibilities and pay, and trying to come to an agreement.

How do you fight unfair demotion?

Appealing an Unfair or Unlawful Demotion Even where no legal protections exist, you can contact the human resources department at your organization if you believe that you are being unjustly treated. Companies often want to avoid seemingly unfair demotions given the potential negative impact on employee morale.

Can you fight a demotion?

When the demotion is unlawful or invalid, it is often possible to appeal it. Even if there is no legal protection in place against the action, the employee may have a chance of success through contact with the Human Resources department at the company.