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<br />5.2 Promotion <br /> <br />Vacancies shall be filled by promotion of present employees who meet the <br />requirements established for the classification, when it is in the best interest of <br />the City. <br /> <br />5.3 Demotion <br /> <br />An employee may be demoted if found unsuited for the present position but may <br />be expected to perform satisfactorily in a position of having a lower pay range, <br />rank or grade, and/or lesser responsibility than previously held. An employee <br />may also be demoted if their position. has been abolished or reclassified and <br />he/she cannot be transferred to a position of equal pay for which they are <br />qualified and suited. <br /> <br />5.4 Reduction of Workforce <br /> <br />If it is necessary to reduce personnel, temporary employees and those serving a <br />probationary period in affected job classes will be separated before regular <br />employees. Within each of these groups, the selection of employees to be . < <br />retained shall be based on merit and ability as determined by the City <br />Administrator, subject to Council Approval. <br /> <br />The City may layoff any employee whenever such action is made necessary as <br />provided in the annual budget by reason of shortage or work or funds, the <br />abolition of a position or because of changes in organization. Two weeks <br />advance written notice of the lay-off shall be give. An employee may be <br />transferred to another position if such employee is qualified and a position is <br />available. When a layoff occurs in a job classification in which more than one <br />employee serves, qualification and job performance shall be the basis for <br />determining which employees are laid-off unless otherwise required by law. <br /> <br />Employees who have been laid off will be recalled to their former position <br />classification in the reverse order of their lay-off. <br /> <br />The suspension and dismissal procedures outlined in "Discipline" of these <br />policies shall not apply to separation covered by reduction in force. <br /> <br />6 COMPENSATION AND WORK HOURS <br /> <br />6.1 General Policy <br /> <br />All employees of the City shall be compensated according to wage schedules or <br />salaries as determined annually by the City Council upon the recommendation of <br /> <br />10 <br />