That’s what I thought. Although that doesn’t change the approach and legal principles, it certainly lowers the stakes. You probably don’t need to talk to a lawyer as long as the team leader isn’t in a union and the manager reads and follows the suggestions in my first response. Even though it’s not as risky as termination, demotion is still problematic and can result in a grievance, lawsuit or legal challenge (or, if the situation deteriorates, become part of such a challenge involving the team leader later on.) Have a great weekend and thanks for the excellent question.