seniority

1. The basis of an employment system in which a worker's status derives from his or her length of service. Some organizations use seniority to determine salary, layoffs, office location, job preference, promotions, and so forth.
2. The condition or status of a security that has priority over other securities by the same issuer with respect to the payment of income (that is, interest or dividends) and repayment of principal. As an example, for the same issuer, bonds have seniority over preferred stock, and preferred stock has priority over common stock. See also junior security.