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HOW IT WORKS
How it works
When you need to make a hard decision about an underperforming employee, you'll use a Demotion Letter. Creating a Demotion Letter establishes an official record of your business decision and confirms the conditions that led to the employee's demotion. It also explains the reason for the demotion, such as performance, behavior, or company restructuring.
You hope you'll never have to make that difficult choice to demote an employee but it happens. A Demotion Letter is a formal letter from an employer notifying an employee of the decision to demote the employee's position within the company. The letter usually contains an effective date of demotion, the employee's new title and a revised salary, if applicable. A Demotion Letter officially informs the employee of the reason(s) behind the downgrade within the company. Most demotions are in response to an employee's behavior or poor work performance. Company restructuring is also a cause for demotion. As an employer (or supervisor) a Demotion Letter will serve as a record of the official action being taken. A copy will go into the employee's file and may be used to establish a pattern of behavior should the employee later be fired.
Looking for more information? Our Human Resources Guide can help you through the intricacies of hiring and managing employees.
Other names for this document: Letter of Demotion, Demotion Letter to Employee
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