Placement Upon Promotion, Demotion Clause Samples
The "Placement Upon Promotion, Demotion" clause defines how an employee’s position, salary, and benefits are adjusted when they are promoted or demoted within an organization. Typically, this clause outlines the process for assigning a new job title, updating compensation, and determining seniority or benefits eligibility following a change in job status. For example, it may specify that a promoted employee receives a salary increase and new responsibilities, while a demoted employee may have reduced pay or a different reporting structure. The core function of this clause is to ensure consistency and transparency in handling changes to employment status, thereby reducing disputes and clarifying expectations for both employer and employee.
Placement Upon Promotion, Demotion or Reclassification
A. For informational purposes, each salary range is approximately 2.5% above the next lower salary range.
B. All appointments to a class shall be to a step within the salary range for that class.
C. Upon promotion or reclassification, an employee’s salary shall be adjusted as follows:
1. For a promotion or reclassification where the seventh step salary of the higher class is less than 10% above the seventh step salary of the present class, the employee shall be placed at the same step in the higher class that they are at in the present class (i.e., if the employee is at the third step in the present class, s/he will be placed at the third step in the higher class; if the employee is at the sixth step in the present class, s/he will be placed at the sixth step in the higher class).
2. For a promotion or reclassification where the seventh step salary of the higher class is 10% or more above the seventh step of the present class, the employee shall be placed in the first step in the new range or the step in the new range which provides for a minimum 10% increase, whichever is greater.
3. For a demotion, including a voluntary demotion, the employee shall be placed at the highest step in the lower range which does not provide an increase in salary.