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A demotion occurs when a manager reduces an employee's job title, role or duties. How you define demoted depends on the situation. A demotion can either be temporary or permanent and is often used as an alternative to letting an employee go.
Demotions can be voluntary or involuntary, and they can occur as a result of poor employee performance, position elimination, disciplinary actions, or organisational restructuring.
Summary. A demotion is a change of an employee from one position to another position, which is in a class with a lower salary range maximum. This can occur through a voluntary action (request from employee).
However, if you're a manager and you get bumped back to assistant manager, that's a demotion. Demotions occur when someone has broken the rules or has done a poor job. Demotions usually come with a reduction in pay too.
A demotion takes place when an employee is shifted from one role to a lesser role in the company. For example, if an employee is a manager, a demotion might return them to a line-level employee. Demotions can be permanent, or you can use them as a temporary solution.