Bechter, Barbara

Seniority entitlements have largely been on the decline since the 1990s, and have been gradually phased-out from legislation in Europe, as well as in collective agreements. However, it would be premature to dismiss seniority-based entitlements as a thing of the past, as they remain in force across Europe, even if the more expansive term of ‘relevant experience’ is preferred. As we look to the future, we ask whether seniority-based entitlements have a renewed role in a European labour market challenged by demographic ageing and a need to keep people working for longer, or whether they are a relic of the past that contribute to inter-generational inequity, under-performance, and lower employment prospects of older workers.

Seniority systems – schemes that allot improving employment rights or benefits to employees as their length of employment increases – have not been widely studied. This report provides the first comprehensive study comparing the design and spread of seniority-based entitlements (SBEs) in Europe and mapping related policy debates. It is primarily based on contributions from the Network of Eurofound Correspondents, covering the 28 EU Member States and Norway, but also presents aggregate seniority-earnings curves for the EU based on data from the Structure of Earnings Survey.

Industrial relations have been studied at a national level for more than 100 years. This study, however, shows for the first time that industrial relations vary more by sector than by country. The authors also argue that this sector-focused research can provide a far more detailed picture of European industrial relations than purely national definitions allow.