QS Study

Demotion is considered as a punishment when an employee is transferred from present post to lower post is called demotion. It means to reduce to a lower grade, rank, class, or position. It refers to a permanent reassignment to a lower position than the employee had worked previously. Demotion is a movement from one position to another that has less pay or responsibility attest to it. The position will generally have a lower level of responsibility or required skill, and a lower pay grade than the previous position.

Demotion policy: Every organization should have a fair and proper specification policy for demotion. These policies are written below –

  • When demotion is granted as punishment, a person will get chance for self-defense.
  • Employees are well involved about the causes of demotion.
  • This law is applicable for all.
  • Rules of the organization should be logical and applicable.
  • If any employees do something against the organization, the authority should enquire about the incident and take a decision by discussion.