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No employee may remain in a probationary status for more than one year. Upon completion of one year of service, and the required Performance Evaluations, the employee will be removed from probationary status or terminated. No employee shall be hired at araue~ above the "A" step of the classification-without the ~' w~ mtten approval of the City Manager or his designee° Section 7. Promotions. When an emplcyee is promoted to a classification one grade higher than the present classification, the employee will receive an increase equiva!~nt to one step. If the promotion is two or more grades above the fomer classification, the employee will receive an increase equivalent to two steps. The City Manager may authorize variations in the application of this Section. However, in no case will an employee's base salary be less than the minimum nor mere than the maximum for the grade to which promoted, Section 8. Demotions. Employees who are demo%ed to a lower grade shall receive compensation according to the grade and step in which they are placed by the Department Head and the Dfrecmor of Personnel and approved by the office of the City Manager. In no case will an employee retain the same compensation that was received prior to the demotion, or be compensated at a rate less than the minimum for the grade to which demoted. Section 9. Transfers. "Transfer" shall mean lateral re-assignment of an employee from one position classification to another position classification; of the same grade. Such transfer may occur within or between departments. Any employee transferred to another class of employment shall receive compensation a'e the same grade and step 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 t-anszerredr ~ without the prior approval of the D ~ ' 'Director of Personnel. ep~rnment Head[s) mnvolved and the Section 10. Overtime. (a) Eligibility for overtime compensation shall ~e deter- mined by the Department Head and the Director of ZPersonnel in accordance wi~h approved personnel practices.