Definition of seniority: Overview, definition, and example
What is seniority?
Seniority refers to the length of time an individual has worked within a company, organization, or profession, which often impacts their position, privileges, and benefits. In many organizations, seniority is used as a basis for determining promotions, raises, job security, or eligibility for certain benefits. Seniority can also influence decisions related to layoffs or terminations, with those who have higher seniority often having greater job protection.
For example, in a unionized workplace, seniority might determine the order in which employees are offered promotions, given preferred shifts, or selected for redundancy if the company needs to downsize.
Why is seniority important?
Seniority is important because it helps establish a clear structure for decision-making, compensation, and other aspects of the workplace. It provides employees with a sense of progression and reward for their loyalty and experience with the company. For employers, seniority systems can help ensure fair and consistent treatment of employees while managing staffing levels, promotions, and benefits.
For employees, seniority can provide job security, opportunities for advancement, and increased benefits based on their time with the company. For employers, it helps maintain a predictable and transparent system for managing promotions, raises, and other personnel decisions.
Understanding seniority through an example
Imagine two employees at a manufacturing company: Employee A has been with the company for 10 years, while Employee B has been there for 3 years. If a promotion opportunity becomes available, the company may use seniority as a deciding factor, offering the position to Employee A due to their longer tenure with the company. Additionally, in the event of layoffs, Employee A may be protected from termination, while Employee B may face the possibility of being let go first due to their shorter length of service.
In another example, a union contract might specify that seniority determines who gets to choose vacation time during the busy season. Employees with more seniority would be given the first choice of dates for their vacations, while newer employees would have to choose from the remaining dates.
Example of a seniority clause
Here’s how a seniority clause might appear in a labor agreement or company policy:
"In the event of a layoff, employees shall be retained based on their seniority with the Company. Employees with the longest service will be the last to be laid off and the first to be rehired. In cases of promotions or transfers, seniority will be considered, but the most qualified employee will be selected based on job performance and experience."
Conclusion
Seniority is an important concept that influences a variety of decisions in the workplace, including promotions, raises, job security, and benefits. By recognizing the value of seniority, employers can reward long-serving employees while maintaining fairness and consistency in their personnel practices.
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.