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No employee shall be hired at a rate above the "A" seep of the classificanion or placed in a transitional seep withouE the written approval of the City Manager or his designee. SECTION 7. Promotions When an employee is promoted to a ~lassificstzon one grade higher than the present classification, the employee will receive an zncrease equivalent to one step. If the promotion is two or more grades above the former classification, the employee will receive an increase equivalent to two steps; however, in no case will an employee's base salary be less than the mmnimum nor more than the maximum for the grade to which promoted. The City Manager may authorize variations mn the application of this secElon. SECTION 8. Demotions Employees involuntarily or voluntarily demoted to a lower grade shall receive compensation according to the grade and seep in which they are placed. If an employee ms demoted ~o a poslEion one grade (5%) below the present classification, the employee will receive a decrease equivalent ~o one step (5%). If the demotion is two grades below the current classification, the employee will receive a decrease equivalent to two steps (10%). When the position demoted to is more than two grades lower, the Director of Personnel will designate the step, with final written approval of the City Manager or his designee. In no case will the employee retain the same compensation that was received prior to the demotion, or be compensated aE a rate less than the minimum for the grade Eo which demoted SECTION 9. Transfers "Transfer" shall mean lateral re-assignment of an employee from one class to the same class, or to another class of the same grade. Such transfer may occur within or between departments. Any employee transferred to another class of emplo~en~ shall receive compensation at the same grade and seep received prior to the transfer. The transfer activity may not be used to increase or decrease the salary of the transferred employee. No employee may be transferred between departments without the prior approval of the Department Heads involved and the Director of Personnel. "Re-Allocation Transfer" shall mean re-assignment under the Employee Resource Program of an employee from one department to another the same or different class or grade. This transfer activity will non change the salary of the transferred employee unless the transfer was a promotional opportunity in which case the rules under Section 7 will apply. No employee may be transferred between deparEmenns without prior approval of the Director of Personnel. The City Manager may authorize variations mn the application of this section.