7 rules re employer's power to DEMOTE worker

The Highest Court has once ruled that demotion involves a situation where an employee is relegated to a subordinate or less important position constituting a reduction to a lower grade or rank with a corresponding decrease in duties and responsibilities and usually accompanied by a decrease in salary.

Below are some principles governing employers' power to demote (according to jurisprudence):

[1] "Transfer" may be interpreted as "demotion" if the same results in reduction in position and rank or diminution in salary.
[2] If an employer transfers an employee who works on highly-technical tasks to a position that requires only mechanical work, there is demotion. There, in such a case, is a transfer from a position of dignity to a servile or menial job; this is demotion.
[3] Generally, a change in workplace does not result in demotion. However, there may be demotion in case of transfer of an employee from the laboratory (a more expansive area involving different tasks and processes) to a vegetable processing section (an area with narrower range of tasks and processes). In such a case, there is transfer from a position of dignity to a servile or menial job - a demotion in disguise. [4] Transfer from one position to another does not constitute demotion simply because of the title of the position or office (for example, from Teacher III to Teacher II). Actually, the totality of circumstances must be considered. Economic significance of the work, the duties and responsibilities conferred, as well as the rank and salary of the employee, among others, are factors that establish whether there is demotion disguised as transfer.
[5] Failure to observe proper diligence in his work and incurred habitual tardiness and absences, including indolence in one's assigned work, are valid reasons for an employer to exercise his power to demote or transfer an employee.
[6] Failure to comply with productivity standards is a valid cause for demotion.
[7] The principles of due process in termination/separation/dismissal cases applies to demotions. In other words, even the employer’s right to demote an employee requires the observance of the twin-notice requirement.