Definition of Back pay:
Back pay is the amount of salary and other benefits that an employee claims that they are owed after a wrongful termination. Back pay is typically calculated from the date of termination to the date a claim was finalized or judgment was rendered.
The amount of time it takes an insurance company to complete the claims process and determine if back pay is due depends on the complexity of the case. In some instances, a claim may be resolved quickly, such as in the case of an automobile accident that only involved damage to the body of the vehicle. Other cases, however, may take years to fully settle. In the case of a wrongful termination claim being made by an employee, the company will be liable for the salary and benefits that the employee would have earned had they not been terminated.
Payment for work done in the past that was withheld at the time, or for work that could have been done had the worker not been prevented from doing so.
Past wages and benefits (bonus, increment, overtime, etc.) to which an employee is entitled either because of a retroactive increase or employment practices (such as dismissal or denial of promotion) declared unlawful by a court or tribunal.
How to use Back pay in a sentence?
- Back pay is the amount of salary and other benefits that an employee claims that they are owed after a wrongful termination. .
- Since you were promoted to your new position six months ago and still have not received your pay raise, you will receive your back pay in two weeks.
- Employers are responsible for back pay, salary and benefits, as if the employee hadn’t been terminated. .
- Companies may insure against the risk of owing back pay to wrongfully terminated employees through employment practices liability insurance policies. .
- The employee was due back pay for the commission sales they generated in the first quarter so we just cut a check.
- Hickman should be provided back pay plus any expenses.
- His paycheck was much larger than he normally got because he received some unexpected back pay after going salaried from hourly at his place of employment.
Meaning of Back pay & Back pay Definition