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An illegal demotion occurs when an employer downgrades its employee for illegal or unjustified reasons. A demotion may be unjustified if you have a written or implied employment contract with your employer. The contact may have certain provisions regarding your professional duties and salary. There may also be explicit or implicit protection that your position and salary will not change. If this is the case, you may have a case of incorrect demotion. In these circumstances, it may be appropriate to “work in protest”, that is, to continue to work and work for your employer until the matter is resolved, while making it clear in writing that you do not agree with it and that you do not agree to the change of conditions or demotion. The demotion constitutes a significant deviation from the employee`s employment contract. A change in the title or role of the position, with or without a change in duties and responsibilities that accompanies it, is likely to constitute a fundamental change in the conditions of employment of a worker, in particular in view of the related change in the seniority or employment status of the worker. So, here`s what you need to keep in mind. It is generally illegal for an employer to unilaterally demotion an employee if it would amount to changing the terms of their employment contract without their consent.

This could constitute a breach of the employment contract and provide the employee with sufficient grounds to resign and demand a disguised dismissal. In some circumstances, if you refuse the proposed changes, your employer may be entitled to fire you. This would be the case, for example, if you have committed serious misconduct and your employer has warned you that you will be dismissed without notice if you do not accept demotion as an alternative sanction.k, If you have been asked to sign a settlement agreement, whether for refusing to accept a demotion or due to new contractual conditions, or for seeking immediate legal advice following a disciplinary action. A settlement agreement is only legally binding on your employer if you have sought independent legal advice and understand the full scope of the contract terms. Your employer should fund or contribute to legal fees to get advice on the deal, so it`s worth asking if it hasn`t already been offered. Employers should carefully consider the applicable industrial instruments to consider the consequences of a demotion in these circumstances. On the face of it, a demotion, if not authorized under an employee`s employment contract or without their consent, could constitute a breach of contract, so the employee may be able to resign and demand constructive dismissal. If you are considering terminating your contract due to actions taken by your employer, you should always consider seeking independent legal advice. Resignation is seen as a drastic measure, and implicit requests for termination can be difficult to justify. If the employee has refused to accept the demotion and the employer has terminated the employment contract by means of a response and has attempted to reinstate the employee in new working conditions, including downgrading, and the employee also refuses to do so, when he or she may be entitled to unfair dismissal and (if the employer does not terminate) a breach of contract, The simple offer of re-employment can mitigate their loss. For this reason, employers often choose to use this tool when introducing new working and employment conditions.

Consultations and agreements should be sought prior to any change in role or employment status. Since a demotion is likely to constitute a substantial change in a worker`s employment contract, prior individual consultation and agreement should take place before such a change of role and/or professional status is made. When a veteran is demoted, such downgrades are often considered dismissals or layoffs under veterans` preference and public service laws, giving the employee a right to notice and hear. When analyzing cases of degradation, it is important to note the different treatments under the Veterans` Preference Laws. A proposal to downgrade an employee that could not be considered a dismissal or dismissal in a financial damages lawsuit in an unlawful dismissal action, for example, may well be considered a referral for the purposes of a veteran preference claim, where the remedy is simply a hearing and a due process opportunity[…].