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A Demotion Letter To Employee is a crucial document used when an organization needs to formally modify an employee's position to a lower rank or responsibility level. Under Singapore employment law, this document must clearly state the business justification, whether due to performance issues, organizational restructuring, or other valid reasons. The letter should comply with the Employment Act and Tripartite Guidelines, providing comprehensive information about the new role, modified compensation, and effective date. It serves as both a legal record and communication tool, ensuring transparency and proper documentation of the employment terms modification.

1. Letter Header and Date: Company letterhead, date, and employee details

2. Subject Line: Clear indication that this is a demotion notice

3. Current Position Reference: Statement of employee's current position and status

4. Business Justification: Clear explanation of the business reasons for demotion

5. New Position Details: Specific information about the new role, responsibilities, and reporting structure

6. Compensation Changes: Clear statement of new salary, benefits, and any other monetary adjustments

7. Effective Date: Specific date when the demotion takes effect

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