Bottom line
Yes- they get a Relief for Cause Report; you do not have to agree with the type of report.
Discussion
Was the Soldier Relieved?
If the Soldier is being demoted, he is being relieved of his duties, as an NCO correct? Can he continue to be in charge of the same personnel and duties that he was in charge of as an E5? No, therefore, it should be a relief for cause:
Relief for Cause Defined
As the removal of an NCO from a specific duty or assignment based on a decision by a member of the NCO’s chain of command or supervisory chain. A relief for cause occurs when the NCO’s personal or professional characteristics, conduct, behavior, or performance of duty warrants removal in the best interest of the U.S. Army.
Will HRC Track the Type of NCOER?
I’m sure the Soldier was flagged and HRC knows that he was demoted. HRC will not contact the unit looking for the Relief for Cause NCOER but it’s the right thing to do.