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Demotion Notice

Demotion Notice Template for Malaysia

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Key Requirements PROMPT example:

Demotion Notice

"I need a Demotion Notice for a senior sales manager being demoted to sales representative due to consistent failure to meet performance targets over six months, effective March 1, 2025, with a salary reduction of 20% and new reporting structure in Malaysia."

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Document background
In the Malaysian business environment, a Demotion Notice is a crucial document used when an organization needs to formally reduce an employee's rank, responsibilities, or compensation. This document must comply with the Employment Act 1955 and related Malaysian employment legislation, ensuring fair treatment and transparent communication. The notice typically becomes necessary due to performance issues, organizational restructuring, or as an alternative to termination. It must clearly communicate the changes in position, responsibilities, and compensation while protecting both employer and employee rights under Malaysian law. The document should include sufficient detail to prevent potential disputes and maintain proper documentation of the employment relationship modification.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and addressee details

2. Subject Line: Clear indication that this is a Demotion Notice

3. Employee Information: Employee's full name, current position, department, and employee ID

4. Demotion Details: Specific information about the new position, responsibilities, and effective date

5. Reason for Demotion: Clear explanation of the grounds for demotion, supported by specific examples or performance data

6. Compensation Changes: Details of salary adjustments and changes to benefits package

7. Implementation Timeline: Specific dates and transition period information

8. Acknowledgment: Space for employee signature and date to confirm receipt of notice

Optional Sections

1. Performance Improvement Plan: Include when the demotion is performance-related and there's an opportunity for future advancement

2. Appeal Process: Information about the employee's right to appeal the decision and the procedure to follow

3. Probationary Period: Details of any probationary period in the new position, if applicable

4. Confidentiality Statement: Include when the demotion involves sensitive information or change in access to confidential data

5. Union Consultation Reference: Include when the employee is a union member and union consultation has taken place

Suggested Schedules

1. Current Job Description: Detailed description of the employee's current role and responsibilities

2. New Job Description: Detailed description of the new role and responsibilities

3. Performance Review Documentation: Copies of relevant performance reviews or incident reports supporting the demotion decision

4. Revised Employment Terms: Detailed documentation of changes to employment terms and conditions

5. Organization Chart: Shows the new reporting structure and position within the organization

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




















Clauses




















Relevant Industries

Manufacturing

Financial Services

Technology

Retail

Healthcare

Education

Construction

Hospitality

Telecommunications

Professional Services

Energy

Transportation

Public Sector

Relevant Teams

Human Resources

Legal

Compliance

Employee Relations

Personnel Management

Operations

Senior Management

Relevant Roles

Human Resources Director

HR Manager

HR Business Partner

Employee Relations Manager

Legal Counsel

Department Manager

Operations Manager

Senior HR Executive

Compliance Officer

Personnel Manager

Chief Human Resources Officer

HR Administrator

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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