Are you familiar with the concept of "bumping rights"? If not, it's important to get acquainted with this term in order to protect both your rights and those of your employees. This HR glossary will help you get familiar with the concept.
Bumping rights refer to the privileges provided to more senior-level employees whose positions have been eliminated or selected for layoff, allowing the employee with seniority to accept an alternative position that is currently occupied by a less-senior employee, resulting in the employee with less seniority being RIF’d or laid off. They are the contractual rights of an employee whose position has been made redundant to replace another employee in their position. These rights are generally granted to more senior-level employees whose positions have been eliminated or designated for layoff.
When a business reduces its workforce and eliminates certain positions, the employees whose positions are being terminated may be eligible to replace other employees in their position. This system of reassigning jobs is typically based on seniority and is called "bumping"2. A business can have an established bumping system that is defined in the company policy, stated in a binding agreement between the employer and the employee, or in a union contract or collective bargaining agreement (CBA). The rules that afford an employee bumping rights will vary with each agreement.
In conclusion, bumping rights are privileges provided to more senior-level employees whose positions have been eliminated or selected for layoff, allowing them to accept an alternative position currently occupied by a less-senior employee. This system of reassigning jobs is typically based on seniority and can be defined in company policy, a binding agreement between the employer and employee, or in a union contract or collective bargaining agreement.