Demotion Defintion

Reducing the rank or grading of an employee’s current status. Often, this means reducing the individual’s position to a lesser important position within the business or organization.

Demotion Extended Definition
Demotion guidelines are set through the human resource or management department.

An employee may be demoted due to unsatisfactory work or a grossly inefficient job performance level. In some situations, personal conduct, deemed inappropriate or unacceptable, leads to demotion. Other times, a demotion may occur through no fault of an employee but rather as a result of a company reorganization.

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Last Updated By

Maria Tanski-Phillips | Mar 01, 2023