If you think you are being unfairly demoted and the demotion results in a reduction in wages, you may be able to claim an undue wage deduction, depending on your particular circumstances. However, a decommissioned employee may remain employed in the decommissioned position without consenting to the demotion, i.e. in protest or for financial or similar reasons. [5] The lowering of the bill resulted in a reduction in the applicant`s basic hourly rate of $4.05 per hour from $43.50 to $39.45, a reduction of 9.3%. In addition, the reduction in hourly wage reduced the applicant`s hourly wage from $53.50 to $49.45 per hour, which is essential in cases where the applicant was working about six hours of overtime per week. The reduction in the applicant`s rate of pay also reduced the additional contributions earned by the respondent. The Commission was satisfied that the deterioration of the applicant`s rating, which led to a reduction in his hourly rate of 9.3% and other reductions in his rights as a result, had led to a significant reduction in his remuneration. If your employer is restructuring or redundancy program, for example. B because the company is reduced due to difficult economic conditions, a downgrade could be an alternative to redundancy. In some cases, a worker may accept an alternative job offer from the same employer. While there may be a reciprocal agreement between the employer and the worker by amending the existing employment contract, it is in any event important to know whether the employer`s activity terminated the contract. In these situations, decommissioning is often a deliberate alternative to dismissal.

However, degradation can also be more subtle, even an unintended consequence of changes in business. For example, during a department restructuring, some important tasks can be accomplished and you accidentally find yourself in a less leadership role than before, even if your salary is equal. If, at the end of a consultation period, the employee refuses to accept the demotion, the employer may be obliged to consider the dismissal of the employee. This option should be cautioned by the employer as part of the consultation process. The worker commenced proceedings on the grounds that he had been demoted and that the demotion constituted wrongful dismissal. Demoting an employee is not easy, but sometimes it has to be done. An employee may not be well placed in his or her current position and there is no other way than to reduce his or her responsibilities. Even if an employee voluntarily requests a downgrade, you, as an employer, still face challenges. Sometimes there is a downgrade with a pay cut. If the employee moves to a lower rank, the salary also decreases. (i) decommissioning does not result in a significant reduction in his or her compensation or obligations; and (a) the applicant`s employment contract contained an unwritten clause established by practices and practices whererly an FLS duty supervisor may be unilaterally demoted without the purpose of the demotion to FLS`s initiative to terminate the contract.