The Letter for Demotion is a crucial document in Malaysian employment practice, used when an organization needs to formally reduce an employee's rank, responsibilities, or compensation. This document must be drafted in compliance with Malaysian employment legislation, including the Employment Act 1955 and Industrial Relations Act 1967. The letter should be used when performance issues, organizational restructuring, or other legitimate business reasons necessitate a demotion. It must clearly document the rationale for the decision, specific changes to the employee's role and compensation, and the effective date of the change. The Letter for Demotion serves as both a legal record and a formal communication tool, protecting the interests of both the employer and employee while ensuring transparency and compliance with Malaysian employment law requirements.
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1. Company Letterhead and Date: Official company letterhead with complete contact information and date of issuance
2. Employee Information: Full name, employee ID, current position, and department of the affected employee
3. Subject Line: Clear indication that this is a demotion notice
4. Reason for Demotion: Clear explanation of the circumstances or performance issues leading to the demotion decision
5. New Position Details: Specification of the new role, responsibilities, and reporting structure
6. Changes in Employment Terms: Details of changes in salary, benefits, and other employment terms
7. Effective Date: Clear statement of when the demotion takes effect
8. Signature Block: Space for authorized signatory and employee acknowledgment
1. Performance Improvement Plan: Include when the demotion is performance-related and there's a structured plan for improvement
2. Appeal Process: Information about the employee's right to appeal the decision and the process to do so
3. Probation Period: Details of any probationary period in the new role, if applicable
4. Training Support: Information about training or support provided to help the employee succeed in the new role
5. Confidentiality Statement: Include when the demotion involves sensitive information or change in access to confidential information
1. Performance Review Documentation: Copies of relevant performance reviews or incident reports supporting the demotion decision
2. New Job Description: Detailed description of the new role and responsibilities
3. Revised Employment Terms: Comprehensive list of changes to employment terms and conditions
4. Organization Chart: Updated organizational structure showing the new reporting relationships
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