1.1 This policy defines the circumstances under which demotion may be considered, the procedural requirements that must be followed, the employee rights and protections that apply, and the support measures the Organization shall provide when an employee is moved to a lower-level position. Demotion is a significant employment action that the Organization approaches with care, fairness, and transparency. This policy ensures that demotion decisions are made for legitimate business or performance reasons, are supported by documentation, follow due process, and comply with applicable employment legislation and the Organization's equal opportunity commitments.

1.2 For the purposes of this policy, demotion is defined as the reassignment of an employee to a role at a lower level within the Organization's job architecture, which typically involves a change in job title, a reduction in responsibilities and authority, a potential adjustment to compensation, and a change in reporting relationships. Demotion is distinct from a lateral transfer, which moves an employee to a different role at the same level, and from a temporary reassignment, which is time-limited and does not permanently alter the employee's position. This policy covers both involuntary demotions initiated by the Organization and voluntary demotions requested by the employee.

1.3 This policy applies to all permanent full-time and part-time employees of the Organization across all locations, departments, and levels. No demotion shall be implemented without the involvement, review, and approval of the HR department, regardless of the circumstances or initiating manager. The HR department shall ensure that the demotion follows the procedures set out in this policy, that the decision is supported by adequate documentation, that the employee's rights are respected, and that the action complies with applicable employment legislation and anti-discrimination requirements. All demotion decisions shall be reviewed by the HR Business Partner and approved by the department head and the HR Director.

2.1 Involuntary demotion may be considered in the following circumstances: performance-based demotion, where an employee has failed to meet the requirements of a formal Performance Improvement Plan and demotion to a role that better matches their current capabilities is considered more appropriate than termination; sustained underperformance, where an employee consistently fails to meet the expectations of their current role despite coaching, feedback, and support; organizational restructuring, where changes to the Organization's structure, business model, or operations result in the elimination or downgrading of the employee's current position; role mismatch following promotion, where an employee has been promoted but demonstrates that they are unable to perform effectively at the new level despite reasonable transition support; and as a disciplinary measure, where demotion is deemed an appropriate sanction for serious misconduct as an alternative to termination, following a formal disciplinary process.

2.2 An employee may voluntarily request a demotion for legitimate personal or professional reasons. Common reasons for voluntary demotion include a desire to reduce the scope of responsibilities or management duties to improve work-life balance, health conditions that make the current role's demands unsustainable, a career change that requires a move to a different function at a lower entry level, personal circumstances that require reduced working hours or travel commitments, and a preference to return to an individual contributor role from a management position. Voluntary demotion requests shall be submitted to the employee's manager and the HR department in writing. The request shall be considered without prejudice to the employee, and the Organization shall make reasonable efforts to accommodate the request subject to business needs and the availability of suitable positions.

2.3 Under no circumstances shall demotion be used as a punitive or retaliatory measure against an employee for exercising their legal rights, raising a grievance or workplace concern in good faith, reporting misconduct or policy violations under the Organization's Whistleblower Policy, filing a workers' compensation claim, requesting leave under applicable legislation, participating in trade union activities, or for any reason related to the employee's protected characteristics under applicable anti-discrimination legislation. Any demotion that lacks a legitimate business or performance justification, or that appears to coincide suspiciously with an employee's exercise of their rights, shall be subject to heightened scrutiny by the HR department and legal counsel. A manager who initiates a demotion for retaliatory or discriminatory reasons shall be subject to disciplinary action.

3.1 Before any demotion is initiated, the employee's manager shall consult with the assigned HR Business Partner to conduct a thorough review of the circumstances. This pre-demotion review shall include an examination of the grounds for demotion and whether they meet the criteria defined in this policy, a review of all supporting documentation including performance reviews, PIP records, coaching logs, and any relevant correspondence, an assessment of whether alternative actions such as additional training, role modification, lateral transfer, or extended performance support have been considered and exhausted, a review of any legal risks, including the potential for claims of discrimination, retaliation, or constructive dismissal, and confirmation that the proposed action is consistent with how similar situations have been handled for other employees. Only after the HR Business Partner is satisfied that the demotion is justified, documented, and procedurally compliant shall the process proceed to the next stage.

3.2 Once the pre-demotion review is complete and the HR Business Partner has endorsed the proposed action, the employee shall be informed of the proposed demotion in a private meeting attended by the manager and the HR Business Partner. During this meeting, the employee shall be given a clear verbal explanation of the reasons for the proposed demotion, supported by specific examples and documentation, provided with a written notice detailing the grounds for the proposed demotion, the proposed new role, level, and reporting line, any changes to compensation and benefits, and the proposed effective date, and given an opportunity to respond to the proposal, ask questions, and present any information or context that should be considered before a final decision is made. The employee shall be given at least 5 business days to consider the proposal and submit a written response. The HR Business Partner shall consider the employee's response before a final decision is confirmed.

3.3 Following consideration of the employee's response, the final demotion decision shall be communicated to the employee in writing by the HR department. The written notification shall include the confirmed reasons for the demotion, the effective date of the demotion, the new job title, level, department, and reporting line, any changes to base salary, benefits, allowances, or other compensation elements, any transitional support arrangements including training, mentoring, or a transition period, and the employee's right to appeal the decision and the procedure for doing so. The letter shall be delivered to the employee in a private meeting and a copy shall be placed in the employee's personnel file. The HR department shall coordinate with the Compensation and Benefits team, payroll, IT, and facilities to implement the changes by the effective date.

4.1 When an employee is demoted, their compensation shall be adjusted to a level within the salary band for the new role, as defined in the Organization's compensation framework. The specific salary shall be determined by the Compensation and Benefits team based on the employee's experience, qualifications, and positioning within the new band. For involuntary demotions, the Organization may, at its discretion, implement a salary protection period of up to 3 months during which the employee continues to receive their current salary before the adjustment takes effect, to mitigate the financial impact. For voluntary demotions, the salary adjustment shall typically take effect on the first payroll cycle following the effective date unless otherwise agreed. Changes to benefits, allowances, and other compensation elements tied to the role level shall be communicated clearly in the demotion notification letter.

4.2 The Organization shall provide appropriate transition support to help the demoted employee adjust to their new role and maintain their well-being and engagement. Transition support shall include an introductory meeting with the new manager to discuss role expectations, priorities, and working arrangements, a structured onboarding plan for the new role covering any unfamiliar responsibilities, tools, or processes, access to training or refresher courses relevant to the new position, a check-in with the HR Business Partner at the 30-day and 90-day marks following the demotion to assess adjustment and address any concerns, and confidential access to the Employee Assistance Program for emotional and practical support. The Organization recognises that demotion can be a difficult experience and is committed to treating all employees with dignity and respect throughout the process.

5.1 Employees who wish to challenge an involuntary demotion decision may submit a written appeal to the HR Director within 15 business days of receiving the final demotion notification. The appeal shall state the specific grounds on which the employee is challenging the decision, which may include procedural failures in the demotion process, factual inaccuracies in the stated reasons for demotion, evidence that the demotion is discriminatory or retaliatory, or disproportionality of the demotion relative to the circumstances. The HR Director, or a senior HR leader who was not previously involved in the decision, shall review the appeal, examine all relevant documentation, and may interview the employee, the manager, and other relevant parties. A decision on the appeal shall be communicated in writing within 20 business days. If the appeal is upheld, the employee shall be reinstated to their previous position with full back pay and benefits. The appeal decision shall be final.

5.2 This policy shall be reviewed at least annually by the HR department in consultation with legal counsel, department heads, and the executive leadership team. The review shall consider the number and outcomes of demotion cases processed during the review period, any appeals and their outcomes, feedback from managers and employees on the demotion process, changes to applicable employment and anti-discrimination legislation, industry best practices in performance management and workforce planning, and the Organization's equal opportunity monitoring data for any adverse impact patterns. Proposed amendments shall be approved by the HR Director and Chief Executive Officer. Material changes shall be communicated to all managers through updated training and guidance materials.