Demotion and how to deal with it?

Thrifty1

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My brother has been working for a company for over 5 years. His original contract states the role he was hired for and his pay. Over the years he has taken on increased responsibility and different/additional roles and has had pay increases.

Last year a new manager was appointed to his team (the guy Mr X) came from a sister company. He was hired to make changes in the comany and improve performance etc etc. He wasnt up to the job and at the start of this year my brother was being given more and more of Mr Xs tasks to perform.

Six months ago the company moved Mr X to another dept as they werent happy with his performance and my brother was told he was being given the managers job. He was told it couldnt be formalised until they "sorted out" Mr Xs contract.

He took over all the tasks of the managers role, all the staff acted like he was the manager - reporting to him etc. The company deal with a large multinational co and he was introduced to senior members of the management team of that company as the new manager. He dealt with other companies in the industry as the manager.

A few days ago he was called into a meeting with management and Mr X and told that the dept that mr x has been moved to is closing down and Mr X is coming back to the role of manager.

My brother was obviously shocked, Mr X has had no contact or part in the running of the dept for the last 6 months, my brother has been doing it all.

They want him to continue doing what he is doing but Mr X will be the manager and my brother will report to him.

He is very humiliated, his collegues have heard the news and are all whispering about what could have happened. He feels this is a demotion with no discourse between himself and management about his performance. He feels everyone will assume he was doing a bad job and so Mr X was brought back.

His performance has been excellent, he has been constantly praised for the good work and effort he has put in and there are physical results to back this up but you know what rumours are like. We both know they are doing this because Mr X contract was never amended to reflect his new position and because the new dept is being closed he is assuming his "old" role and they are hoping my brother will lie down and take it.

He was never officially made manager but surely acting as such in full capacity and being introduced as such counts for something? This has made his work situation very difficult over the last week, he feels his reputation has been ruined (its a very small closed industry and word travels fast). He had planned on seeking a career with the multinational they deal with sometime in the future and had been working hard to impress them in meeting but he feels when they hear he is no longer manager they will assume it was a performance issue (or something worse).

My brother also set up another dept 2 years ago and he earns a performance related bonus from it. This again was never written in a contract. Over the last year the comany have repeatedly refused to pay this bonus, they have tried to remove his entitlement to it altogether but when he wrote to them complaining they backed down.

However he is now 3 months overdue bonuses, despite constant emails from his requesting it be paid they keep refusing and trying to add new conditions to its being paid.

What course of action should he take and has he any rights?

Thanks for reading.
 
Sorry to hear about your brother's treatment, seems very unfair. Is he a member of a trade union?

Hindsight is a marvellous thing but he would appear to need to assert himself more in the future with his dealings with this company. Six months is a long time to have taken on the duties of the manager and not get any increase or confirmation of the role.

Perahsp he could get some advice from [broken link removed]

Hope he gets it sorted.
 
Has he had a direct, hard discussion with his line manager? That would be a good first step.
 
However he is now 3 months overdue bonuses, despite constant emails from his requesting it be paid they keep refusing and trying to add new conditions to its being paid.

This is the part I would be worried about.

As well as this, has he got a pay increase? I'm guessing the main reason he is working there is to make money. I would suggest looking at everything in terms of money, and not promises or contrived titles.
 
The company's HR department is not doing its job in terms of change management and the management seem to be exploiting your brother.
There is no room in any company for a useless manager - the company must make a choice, and so must your brother.
His trump card is that he has shown his capability and Mr X has shown his incapability.

I strongly suggest that if he is forced by circumstance to support Mr X that he gains from this in the following ways -

- a title to show his increased responsibility
- reporting directly to top management in Mr X's absence (I expect he will "go missing" sometimes)
- being sent on training and upskilling courses such as part time MBA's to get credit for his ability, paid for by the company.

This last one is to allow him to gain recognition for his skills which allow him to sell them with accreditation when the inevitable "final conflict" occurs.
I would continue to play the long game as long as the company supports him in the above manner - the alternative is to find another job now.
 
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