I really HATE my Boss!!!

I have worked as a legal executive for a law firm in Cardiff for the past 5 years. It is a small firm and has cash flow problems. Just after Christmas the firm decided that they would have to cut the number of legal executives in the firm from 4 to 1. The firm set out the criteria for redundancies, including qualifications, length of service, quality of work. Two found other jobs straightaway, which left me and Sarah (my best friend and who joined the firm roughly at the same time and who I studied with) fighting for the one job. Then the firm agreed that the losing candidate could take up a secretarial position in the firm but at a pay drop of £15K. Both Sarah and I decided that our friendship should not suffer and the decision was out of our hands. Our redundancies scores were identical so we agreed it should be settled by way of a multi-choice law test. I scored 51%, Sarah scored 65% and so Sarah kept her job and I was demoted. I have now ended up being Sarah’s Secretary and she is really horrible to me. I appreciate it is a difficult situation but she seems to pick fault in everything I do, She shouts at me, so I end up in tears most weeks. She said that meeting up after work would not be appropriate. This week I had my three month appraisal which she has made so negative that HR are now involved and have set up a disciplinary meeting. My Question: How can I deal with this??

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