Document background
A Demotion Letter Due To Poor Performance is a crucial human resources document used when an organization needs to formally document the downgrade of an employee's position due to documented performance issues. This document is particularly important in the United States, where employment actions must comply with federal and state labor laws, anti-discrimination regulations, and fair employment practices. The letter serves multiple purposes: it formally notifies the employee of the demotion, documents the performance-based reasons for the action, specifies the new role and compensation terms, and protects the organization legally by creating a clear record of the employment action and its justification. It should be used after proper performance documentation, warnings, and improvement opportunities have been provided, and before implementing the position change.
