A demotion occurs where an employee’s job rank, title, or status is lowered. A demotion can either be voluntary or involuntary and may result in a breach of the employee’s contract. Some courts have held that an employer may demote an employee when there is cause to terminate the employee; however, things are often more complicated and it is questionable just when it is appropriate for the employer to demote someone because of the above considerations.

Demotion & Constructive Dismissal

Where an employer cannot prove that there was “just cause” for the demotion, the courts may see this as a constructive dismissal. 

Constructive dismissal occurs where an employer, without notice, changes the terms and conditions of employment so that they no longer can be said to be those that the employee agreed to. 

To determine if the demotion amounts to constructive dismissal, there will be an examination of the reasons for the change.,  

Where an employee is offered a transfer to an alternative, but lesser position, this may still constitute a constructive dismissal. Even where the change in responsibilities occurs over a gradual period, it may constitute a constructive dismissal if there is a substantial change in the duties. 

When the demotion puts the employee in a position where he or she is unable to perform the position, this may amount to constructive dismissal. Also, a significant reduction in an employee’s salary, as a result of the demotion, can constitute a constructive dismissal.

How can Zeilikman Law help?

If you have experienced a demotion and have questions or concerns related to that demotion and possible constructive dismissal, contact one of the experienced lawyers today to discuss your options.

At Zeilikman Law, we approach these issues with logical and creative solutions. Our lawyers are professional, friendly, and determined. We have the know-how to navigate through the psychology of any given dispute. Request a consultation or call us today!