It may be necessary at times to write a letter of demotion to an employee. Because of performance related issues or due to economic issues, employees are sometimes demoted to a lower salary level. This can be a tough letter to write because it delivers bad news. Demotion letters should be straightforward, clear and professional. You should provide a reason for the demotion, especially if the demotion is because of employee issues. A demotion letter can be simple to write though.
Use company stationary and complete it like a memo, filling out To: From: Re: and Date: on the top right hand corner. One such possible subject for a demotion letter is Revision of Designation.
Begin by establishing how long the employee has worked for the company using specific dates. List the employee's current designation.
State clearly that management has decided to change the employee's designation class and list the new designation. Write what date the new designation will be effective. Add a reason if there is a performance issue.
State the salary the employee will receive under his new designation if it has changed.
Encourage the employee to contact Human Resources or his manager with any further questions. Sign the letter with your name and title.
Have the employee sign the bottom of the letter. This validates that he received the letter and acknowledges the change.
Copy the letter for the employee's file, his manager, human resources and the employee.
It is best to deliver the news to your employee in person if possible.