How to write a demotion letter

Written by ireland wolfe
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How to write a demotion letter
Writing a demotion letter can seem overwhelming. (Jupiterimages/Goodshoot/Getty Images)

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.

Skill level:
Moderately Easy


  1. 1

    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.

  2. 2

    Begin by establishing how long the employee has worked for the company using specific dates. List the employee's current designation.

  3. 3

    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.

  4. 4

    State the salary the employee will receive under his new designation if it has changed.

  5. 5

    Encourage the employee to contact Human Resources or his manager with any further questions. Sign the letter with your name and title.

  6. 6

    Have the employee sign the bottom of the letter. This validates that he received the letter and acknowledges the change.

  7. 7

    Copy the letter for the employee's file, his manager, human resources and the employee.

Tips and warnings

  • It is best to deliver the news to your employee in person if possible.

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