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What is Back Pay?

Posted: Mon Sep 27, 2010 5:04 pm
by Niks
Hello
Back pay can remain a theoretical number for years, generally calculated as the amount of straight salary or hourly wages a discharged worker would have received during the time between the initial claim and a successful outcome. Not all employees who file claims against a company are automatically awarded back pay, however. Entitlement to back pay can be determined at the discretion of the arbitrator or judge who actually reviewed the circumstances of the claim. An employee who was fired from his or her position for a justifiable cause may not receive any back pay at all, while another claimant who proved discriminatory action could receive a substantial amount of back pay from his or her former employers.

People who become separated from the jobs because of legal, humanitarian or military reasons may also be entitled to some form of back pay upon their return to regular employment. This would most likely be at the discretion of the company, which may have other types of wage compensation to offer as well. A worker suspended "with pay" pending the outcome of a legal investigation would not be eligible for back pay, but another worker suspended "without pay" could petition for back pay if the outcome is positive. This happens frequently when an employee is suspended from work as a precaution, but later reinstated after his or her name has been cleared.

Thanks

Re: What is Back Pay?

Posted: Mon Sep 27, 2010 6:00 pm
by Niks
Hello
Back pay can remain a theoretical number for years, generally calculated as the amount of straight salary or hourly wages a discharged worker would have received during the time between the initial claim and a successful outcome. Not all employees who file claims against a company are automatically awarded back pay, however. Entitlement to back pay can be determined at the discretion of the arbitrator or judge who actually reviewed the circumstances of the claim. An employee who was fired from his or her position for a justifiable cause may not receive any back pay at all, while another claimant who proved discriminatory action could receive a substantial amount of back pay from his or her former employers.

Thanks