Disciplinary Decision Letter of Demotion of an Employee

Earning is never an easy task. When someone starts his professional life, he simply enters the world of complex rules, policies, procedures, and obligations. Failure to follow all can lead to serious issues. Such issues can be warnings, terminations, and demotions.

The first thing an employer can do is to counsel and warn the employees of any misconduct or poor performance. If it never works they can increase the number of warnings. But, warnings can be for a limited time span.

When different efforts of counseling and warnings fail, an employer can go for demotion. Demotion is just a decrease in the position and obligations of an employee. Demotion can be on any issue covering the signed contract between the employer and the employee. Demotion can also affect one salary. The salary decrease can be of much loss to an employee. Sometimes financial circumstances can also result in demotion.

Disciplinary demotion has a tough criterion for both the employer and the employee. Once the employer is taking a disciplinary decision of demotion; he should settle the issue by direct contact with the relevant employee.

The actions taken must be clearly defined, the changes in ranks and titles must be clear to the employee, and the changes in salary must be known to him. The time span for demotion should be defined.

The reasons must be stated clearly to the employee. One important thing to be considered is that the employer should give much legroom to the relevant employee for any explanation and requests that he wants to make.


With a lot of regrets, I would like to inform you that we have decided to demote you from manager to assistant manager. This decision was hard, and I really fought for you. However, keeping your performance in mind, it was the best we could have done for you.

There have been various reasons for this demotion including your performance and behavior at work. Please do not let this discourage you. Rather take this as another chance to prove yourself and come back with more enthusiasm.


Downgrading an employee is not stress-free but at times it must be tough. Since you are not up to the grade, there is no option left but to reduce your responsibilities as it is in the favor of both you, and the organization. I’m sorry to inform you that you are reduced to a lower position formally. The reasons which compelled us to take the decision are narrated below:

  • You are not working consciously and not paying much attention to the official work for quite some time.
  • Poor performance and lack of interest shown by you turned our heads to think this way.
  • It is obvious that you lack the caliber for this very position as you failed to fulfill the criteria set for working with our firm.
  • You also attended the last meeting which was particularly held to make you realize the importance of being attentive at the workplace.

Keeping in mind all the above-stated reasons, we concluded that it is better to decrease your burdensome job which also meets your level.

Disciplinary Decision Letter of Demotion of an Employee

File: Word (.docx)
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