Retroactive Pay
/ˌrɛtroʊˈæktɪv peɪ/
Definitions
- (n.) Compensation for work performed in a prior period, awarded after the fact to correct underpayment or to implement new wage terms retroactively.
The employees received retroactive pay after the union negotiated a higher salary starting from six months prior.
Forms
- retroactive pay
- retroactive pays
Related terms
See also
Commentary
Retroactive pay is commonly used in labor law contexts to rectify wage discrepancies or apply newly agreed terms retroactively; clear time frames and legal basis should be specified in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.