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SECTION 4. Allowances. The rate of pay set forth in this schedule shall be deemed to in- clude the full compensation of the employee. However, the value of any allowances made to the employee by the City shall also be considered a part of total compensation. SECTION 5. New Employees. All new employees are probationary for one year and shall receive compensation according to the classification in which they are placed. No employee may remain in a probationary status for more than one year. Upon completion of one year service the employee will be removed from probation and placed in a permanent status or termi- nated. No employee shall be hired at a rate above the "A" step of the classification without written approval of the City Manager or his designee. SECTION 6. Promotions. Upon promotion to a higher pay grade, the employee will be placed in the lowest step which will afford an increase in pay that. is no more than a three step advancement, unless authorized by the City Manager. In no case will an employee's base salary be less than the minimum nor more than the maximum for the grade to which promoted. SECTION 7. Demotions. Any employee who is demoted to a lower grade shall receive comr pensation according to the grade and step in which he/she is placed by the Department Head and the Director of Personnel. In no case will an employee be compensated less than the mini- mum rate for the grade to which demoted. SECTION 8. Transfers. "Transfer" shall mean lateral reassignment of an employee from one position classification to another position classification, which is comparable in terms of duties, responsibilities, and grade. Any employee transferred to another class of employment shall receive compensation at the same step rate received prior to the transfer. No employee may be transferred without the prior approval of the Department Head(s) involved and the Di- rector of Personnel.