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Is it frowned upon in HR if I apply for a new job internally after accepting a new one?

because of covid, I am thinking there's a high chance my contract will not be renewed with this company for 2021. My director last week suggested I could apply for a lower-title + salary role with a 3 year term.

I am wondering if it is heavily frowned upon on by a company or from HR if they see me applying for new roles internally right after I accept this role?