Moving an employee to a lower-level role, often accompanied by a pay reduction.
A demotion is a reduction in an employee's job title, level, responsibilities, or pay. Demotions can occur voluntarily (at an employee's request for reduced responsibility) or involuntarily (as a disciplinary measure or due to business restructuring). Involuntary demotions must be handled carefully to avoid constructive dismissal claims. HR teams must ensure demotions are documented, follow a fair process, and comply with employment law, particularly regarding any resulting pay changes.
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