Labor Old

economic-dictionary

Seniority is the time that a person has been working for a public or private organization.

It is therefore the count of the time that a worker has provided services for a company.

Importance of seniority

There are several elements in which seniority is essential, among them are:

Right of a worker to receive an amount of money when his employment relationship ends, whether due to illness, disability or retirement. And to establish the amount that you are entitled to receive, it is necessary to know your work seniority, since it is used to calculate what you are entitled to. And it is that, the more time worked corresponds to a greater amount of money.

On the other hand, in the event that the worker dies, it will be the people who depended on him who can receive an amount of money for the termination of work, that is the case of the children as compensation if the reason for the death is a risk of work. It is also required to know the time you had working for the company.

Seniority is an important piece of information when making decisions regarding a promotion or promotion. While it is true that it is not a determining factor, it does speak of the experience you have in your current job.

Another significant element in which it is useful to know the work seniority is when applying for a new job, since the applicant or candidate can be valued by the time they have worked in different positions, throughout their working career in a company or in different companies.

There are business policies and laws in which they establish that, according to the seniority of the employee, the employee acquires other rights. An example of this would be the following:

  • More vacation days.
  • Flexibility in the working day.
  • Option to purchase company shares.
  • Freedom to select the days you can take on vacation.
  • Possibility of requesting permission to be absent to care for a sick family member, among others.

In some companies, seniority is an element to take into account for a salary increase.

Work seniority is also important when accessing the listing time to acquire a loan to buy a property, because the older you show greater financial stability and, therefore, you can commit to making mortgage payments.

For the company, having employees with more seniority has implications such as:

  • Greater experience.
  • Possibility of carrying out mentoring activities for new employees.
  • Recognition for the rest of the workers for the stability of the company.
  • As well as transmitters of brand value messages due to the strong bond they have with the company, etc.

Conditions for recognition of seniority

It is very common for companies to hire an employee for a short period of time as a “trial” and once that period, which generally comprises a period of 3 to 6 months, is concluded, a contract is made for an indefinite or long-term period. determined that it can be from 1 year onwards or without a deadline. In addition, generally, the moment in which the counting of the work seniority begins is from the first contract.

When the company in which it works carries out a merger with another company, it has the obligation to keep the count of time in which its employees are working.

If the company has changed its name, owners or line of business and makes a new contract, the seniority of the employees may not be considered. It is therefore necessary that it be something agreed between both parties to avoid future conflicts or misunderstandings and it is known if the relationship can be claimed at the end of the working life in regards to compensation or retirement.

It is important to bear in mind that there must always be a contract that is signed in accordance between the worker and the company, so that an employment relationship can be established that guarantees the counting of the time worked. If this situation does not occur, it is considered a bad practice on the part of the company, since the worker could sue for failing to fulfill the contract.

Another bad practice on the part of the company is that it carries out multiple contracts with short periods of time, in an attempt to prevent the worker from acquiring the recognition of seniority and to avoid the corresponding payment for severance or retirement. This can also be demanded by the worker.

Tags:  Commerce economic-dictionary derivatives 

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