Seniority: Overview, definition and example
What is seniority?
Seniority refers to the length of time an individual has been employed with an organization, or their rank or status relative to others in the workplace or organization. Seniority is often used as a factor in decisions related to promotions, benefits, layoffs, or other employment rights. Some contracts or workplace policies define how seniority is calculated and its impact on employee entitlements.
For example, a company’s policy might state that employees with greater seniority have preference for scheduling vacation time or retaining positions during layoffs.
Why is seniority important?
Seniority is important because it provides a clear and objective framework for making employment-related decisions, fostering fairness and consistency. It rewards long-term employees for their loyalty and service while reducing potential conflicts or favoritism in workplace policies.
Defining seniority in contracts or policies ensures transparency, protects employees’ rights, and helps employers implement equitable practices in areas such as promotions, benefits, and job security.
Understanding seniority through an example
An employee has worked for a company for 15 years, earning seniority that gives them priority for choosing shifts and vacation dates over newer employees. The company’s union agreement also specifies that layoffs will occur in reverse order of seniority, meaning the employee is less likely to be laid off than someone with fewer years of service.
An example of a seniority clause
Here’s how a seniority clause might appear in a contract or policy:
“Seniority shall be determined by the Employee’s continuous length of service with the Company, calculated from the Employee’s start date. In the event of layoffs or promotions, employees with greater seniority shall be given preference, provided they meet the qualifications for the position. Breaks in service, except for approved leaves of absence, shall result in the loss of accumulated seniority.”
Conclusion
Seniority provisions are vital for ensuring fairness and transparency in workplace decisions, recognizing long-term contributions while maintaining equitable practices. By clearly defining seniority and its impact in contracts or policies, employers can foster trust, reduce conflicts, and support a positive work environment. A well-drafted seniority clause promotes consistency and fairness for employees and organizations alike.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.