escalator clause

Definitions of "escalator clause"
  1. A provision in a contract that allows for a growth in payment amounts based on increases in associated costs or the rise of a cap on expenses imposed by the government
  2. A provision in an employment agreement which allows for a growth in wages due to a surge in the cost of living, yet assures no reduction even if the cost of living decreases
How to use "escalator clause" in a sentence
  1. The trade union negotiated for an escalator clause in the contract to safeguard workers' wages against inflation.
  2. The tenant's lease includes an escalator clause ensuring rent increases in line with any rise in real estate market values.
  3. While reviewing the employment contract, the lawyer pointed out an escalator clause, highlighting how salaries would increase with the cost of living.

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