“You have to have a very honest discussion with the employee,” Witzel said. Stay Professional.
Initiate networking activities with professionals in your field through professional organizations. It’s the downgrading of your job title, rank or status, with terms like “reorganization” or “reassignment.” It’s not uncommon in the workplace. Getting demoted is never in anyone’s career plan.
Demotion represents a significant variation to the employee’s contract of employment. “The goal is that you handle it as gracefully as possible.

You’re going to go through a lot of emotions and your instincts might be to lash out or criticize. Demotion vs. termination. If you believe that your demotion might be illegal, you have the option of consulting an employment attorney or your state Department of Labor to obtain a formal legal opinion. Now is the time to build and nurture your relationships with co-workers so you can lean on them for support. For example, returning to sales after leaving a management position might have given you the needed opportunity to refresh your knowledge of your product and client base, making you a more effective manager than you were before. Did your salary get cut because the company reported poor earnings for last year?

The Commission found that the applicant's demotion in his employment with constituted a dismissal within the meaning of s.386 of the Fair Work Act. Demotion is often approached by employers and HR professionals with a degree of trepidation as an option in managing the workforce. But if you opt to stay and complain, your supervisors and colleagues will eventually start to view you as a toxic influence, and you may find yourself dismissed, she cautions. If you are reducing a demoted employee’s wages, make sure you tell the employee first. 46% of companies have demoted an employee, according to HR managers. The Commission was satisfied that the applicant's demotion involved a significant reduction in his duties. Consultation and agreement should be sought before implementing a change in role and/or job status.

An Equal Opportunity Employer M/F/Disability/Veterans. It is for this reason that employers often decide to employ this tool in introducing new terms and conditions of employment. When Employees Can Be Demoted Most workers in the U.S. are employed at-will. The first thing is to find out why your company is taking this action and to calmly reflect on it. If there were circumstances beyond your control, like a restructuring which reduced the number of management positions, then you can explain those factors, but don’t make excuses for your shortcomings, or blame the company.