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Demotion Notice

Demotion Notice Template for Canada

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Key Requirements PROMPT example:

Demotion Notice

"I need a Demotion Notice for a senior sales manager being demoted to sales representative due to consistently missed targets over the past two quarters, with the change to take effect from March 1, 2025; the notice should include a performance improvement plan and new compensation structure."

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Document background
The Demotion Notice is a crucial employment document used in Canadian workplaces when an organization needs to formally communicate a reduction in an employee's position, responsibilities, or compensation. This document must be carefully drafted to comply with both federal and provincial employment standards, human rights legislation, and common law principles regarding constructive dismissal. It should clearly outline the business reasons or performance issues leading to the demotion, specify the new role and its terms, and detail any changes to compensation or benefits. The notice must be written in a way that minimizes legal risks while maintaining professional relationships and ensuring clear communication of the change in employment status.
Suggested Sections

1. Letter Header: Company letterhead, date, and formal addressing to the employee including their current position and employee ID

2. Notice of Position Change: Clear statement indicating the change in position/demotion and effective date

3. Reason for Demotion: Brief, factual explanation of the business reasons or performance issues leading to the demotion

4. New Role Details: Specification of new position title, responsibilities, and reporting structure

5. Compensation Changes: Clear outline of new salary, benefits, or other compensation adjustments

6. Timing and Transition: Information about when the change takes effect and any transition period

7. Acknowledgment Request: Request for the employee to acknowledge receipt and understanding of the notice

Optional Sections

1. Performance Improvement Plan: Include when demotion is performance-related and there's a structured plan for improvement

2. Training Requirements: Include when new role requires specific training or certification

3. Probationary Period: Include when a probationary period applies to the new position

4. Right of Appeal: Include when company policy allows for internal appeals of demotion decisions

5. Impact on Benefits: Include when there are significant changes to benefits beyond basic compensation

6. Union Considerations: Include when employee is covered by collective agreement

7. Confidentiality Statement: Include when demotion involves sensitive information or change in access to confidential information

Suggested Schedules

1. New Job Description: Detailed description of the new role's responsibilities, requirements, and expectations

2. Performance Review Documentation: Copies of relevant performance reviews or incidents leading to demotion (if performance-based)

3. Organizational Chart: Updated organizational structure showing new reporting relationships

4. Compensation Details: Detailed breakdown of new compensation package including benefits

5. Performance Improvement Plan Details: If applicable, detailed plan with specific goals and timelines for improvement

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




















Clauses





















Relevant Industries

Banking and Financial Services

Manufacturing

Retail

Healthcare

Technology

Education

Government and Public Sector

Construction

Professional Services

Telecommunications

Transportation and Logistics

Energy and Resources

Hospitality and Tourism

Non-profit Organizations

Media and Entertainment

Relevant Teams

Human Resources

Legal

Employee Relations

Compliance

Senior Management

Operations

Department Management

Industrial Relations

Corporate Communications

Talent Management

Relevant Roles

Human Resources Director

HR Manager

Employee Relations Manager

Department Head

Senior Manager

Operations Manager

Legal Counsel

HR Business Partner

Chief Human Resources Officer

Regional Manager

Branch Manager

Department Supervisor

Team Lead

Project Manager

Division Director

General Manager

Chief Operating Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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