Document background
The Letter of Demotion is a crucial document in Canadian employment law, used when an organization needs to formally reduce an employee's rank, responsibilities, or compensation. This document must be carefully crafted to comply with federal and provincial employment standards, human rights legislation, and common law principles regarding constructive dismissal. The letter should be used when organizational restructuring, performance issues, or other legitimate business reasons necessitate a demotion. It typically includes detailed information about the new position, compensation changes, effective date, and reason for the demotion. Given the legal sensitivity of demotions in Canadian employment law, the document should be reviewed by HR and legal professionals to ensure it meets all statutory requirements and minimizes legal risks while maintaining clear communication with the affected employee.
