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Demotion Notice Template for New Zealand

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Key Requirements PROMPT example:

Demotion Notice

"I need a Demotion Notice for an underperforming senior sales manager being moved to a sales representative position effective March 15, 2025, with a 20% salary reduction and a 3-month performance improvement plan."

Document background
The Demotion Notice is a critical employment document used in New Zealand when an organization needs to formally reposition an employee to a lower-ranked role. This document is essential for ensuring compliance with New Zealand employment law, particularly the Employment Relations Act 2000 and related legislation. A Demotion Notice should be used when performance issues persist despite prior interventions, when organizational restructuring necessitates role changes, or when an employee voluntarily requests a step down. The document typically includes comprehensive details about the current and new positions, reasons for the change, modifications to employment terms, and effective dates. It serves both as a legal record and as a clear communication tool, ensuring transparency and proper documentation of the employment change while maintaining compliance with New Zealand's requirements for fair employment practices and good faith dealings.
Suggested Sections

1. Current Position Details: Employee's current role, responsibilities, and employment terms

2. Reason for Demotion: Clear explanation of the circumstances or performance issues leading to the demotion decision

3. New Position Details: Detailed description of the new role, including title, responsibilities, and reporting relationships

4. Changes to Terms: Specific changes to employment terms, including any salary adjustments, benefits modifications, or other contractual changes

5. Effective Date: The date when the demotion takes effect

6. Acknowledgment: Space for employee signature acknowledging receipt of the notice

Optional Sections

1. Performance Improvement Plan: Include when the demotion is performance-related and there's a structured plan for improvement

2. Appeal Rights: Information about any internal appeal processes, if available to the employee

3. Transition Plan: Details of how responsibilities will be handed over and any training provided for the new role

4. Probationary Period: Terms of any probationary period in the new role, if applicable

5. Support Resources: Information about available support services like EAP or mentoring, particularly useful when the demotion may impact employee wellbeing

Suggested Schedules

1. Schedule 1 - Updated Job Description: Detailed description of the new role's responsibilities, requirements, and expectations

2. Schedule 2 - Modified Employment Terms: Comprehensive list of all changes to employment terms and conditions

3. Schedule 3 - Performance Records: If performance-related, relevant documentation supporting the demotion decision

4. Appendix A - Organizational Chart: Updated reporting structure showing the employee's new position in the organization

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















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Relevant Industries

Financial Services

Retail

Manufacturing

Technology

Healthcare

Education

Professional Services

Construction

Hospitality

Public Sector

Transportation

Mining and Resources

Agriculture

Telecommunications

Relevant Teams

Human Resources

Legal

Employee Relations

Operations

Senior Management

Department Management

Administration

Compliance

Industrial Relations

Relevant Roles

Human Resources Manager

HR Business Partner

Department Director

Operations Manager

Line Manager

Senior Manager

Team Leader

Supervisor

HR Director

Chief Human Resources Officer

Legal Counsel

Employee Relations Manager

HR Administrator

Department Head

General Manager

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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