Employee Demotion Sample Letters

[Employee Name]
[Employee Address - optional]

Dear [Employee Name],

You are receiving this letter because your role at [Company] is changing from [Position A] to [Position B]. This change will become effective on [Effective Date with Year]. Your role change is being effectuated as a result of [Company]’s decision that [Position B] is better suited for your experience level, qualifications, and skill set.

As a result of your role change, your [salary / wages] will also change, commensurate with the [salary / wage] allotted for [Position B]. Consequently, your [weekly / monthly / annual] [salary / wages] will be reduced from [Position A salary/wages] to [Position B salary / wages] per [week / month/year]. [Your bonus structure will also change, commensurate with the bonus structure allotted for [Position B]. Your [monthly / annual] bonus potential will be reduced from [Position A amount] per [month / year] to [Position B amount] per [month / year]]. All [salary / wage] [and bonus] changes will take effect on [Effective Date with Year]. More information about your new role, including job descriptions, supervisor information, and other requirements will be communicated to you by [Human Resources / your new manager].

Thank you for your service with [Company]. You are a valued member of our team, and your contributions are appreciated. [Company] looks forward to continuing our work together to foster your future career growth.

Sincerely,
[HR / Supervisor Signature]
[HR / Supervisor Name]
[Date of Delivery]
 

[Employee Name]
[Employee Address - optional]

Dear [Employee Name],

You are receiving this letter because your role at [Company] is changing from [Position A] to [Position B]. This change will become effective on [Effective Date with Year]. Your role change is being effectuated because of recent [misconduct prohibited by [Company]’s [name of policy broken] / noncompliance with [Company]’s [name of policy not complied with]].

As a result of your role change, your [salary / wages] will also change, commensurate with the [salary / wage] allotted for [Position B]. Consequently, your [weekly / monthly / annual] [salary / wages] will be reduced from [Position A salary/wages] to [Position B salary / wages] per [week / month/year]. [Your bonus structure will also change, commensurate with the bonus structure allotted for [Position B]. Your [monthly / annual] bonus potential will be reduced from [Position A amount] per [month / year] to [Position B amount] per [month / year]]. All [salary / wage] [and bonus] changes will take effect on [Effective Date with Year]. More information about your new role, including job descriptions, supervisor information, and other requirements will be communicated to you by [Human Resources / your new manager].

[Optional Language:
You are required to follow the Performance Improvement Plan created by you and [Human Resources and/or your manager]. If sufficient improvements are not made within the next thirty (30) days as outlined in your Performance Improvement Plan, [Company] reserves the right to terminate your employment as [Position B] as outlined in [Company]’s Disciplinary Policy.]

Thank you for your understanding and for your compliance with your role change at [Company]. [Company] is here to support you in your role change and hopes to see you succeed in [Position B].

Sincerely,
[HR / Supervisor Signature]
[HR / Supervisor Name]
[Date of Delivery]

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