Bumping Rights

Meaning & Definition

Bumping rights is a workplace practice where a senior employee affected by lay-offs or restructuring can “bump” a junior employee to retain their job. This practice occurs when the senior employee meets the qualifications of the junior employee’s job. Bumping rights are most commonly used when a workforce is being downsized or reorganized.

Why Bumping Rights Matter in HR?

• Maintains job security for long-standing employees when layoffs occur due to employee seniority being acknowledged as fair and equitable. 
• Provides a mechanism to decrease the likelihood of legal challenges arising from an employer’s decision to shorten. 
• Increases transparency of the process concerning workforce restructuring; 
• Provides HR with information necessary to effectively rearrange employees instead of simply terminating them directly.

Legal Compliance / Policy / Regulation

Indian labour law does not define bumping rights in the context of government.

The Industrial Disputes Act, 1947 defines the principles governing seniority and reduction and in the case of manufacturing establishments, these principles may be taken into account when determining bumping rights.

Most bumping rights within a company are determined by a country’s internal human resource policies, as well as standing orders and collective bargaining agreements.