Global HR glossary
Your quick dictionary to EOR and global employment, and international hiring terminology.
A
Annual Leave
Annual leave is paid time off employees are entitled to take from work for a specified number of days each year for vacations and personal activities.
Read moreAt-Will Employment
At-will employment is an employment relationship in which either the employer or the employee can terminate their working relationship at any time and without cause.
Read moreAÜG Licence
An AÜG licence is the legal authorisation required for any company that supplies or leases employees to another business in Germany.
Read moreB
Back Pay
Back pay represents the compensation an employee should have received but didn't during their employment period.
Read moreC
Collective Bargaining Agreement (CBA)
A CBA is a legally binding contract between an employer and a labour union that is typically used to establish wages, benefits, and working conditions.
Read moreCompensation Package
A compensation package represents the total value proposition offered to an employee in exchange for their work.
Read moreE
Employee Handbook
An employee handbook is a ‘living document’ provided by a company to its workers that outlines the organisation’s policies and procedures.
Read moreEmployee Misclassification
Employee misclassification refers to when companies incorrectly categorise an employee as an independent contractor.
Read moreEmployee Rights
Employee rights are designed to ensure fair treatment, safe working conditions, and respect for employees' dignity and well-being.
Read moreEmployer of Record (EOR)
An Employer of Record is a company that helps companies legally hire and employ workers residing in countries other than where the company is based.
Read moreEmployer Payroll Contributions
Employer payroll contributions encompass all taxes associated with employing workers that are due by employers on top of salary and any benefits.
Read moreEOR Compliance Responsibilities
As the legal employer, an EOR is responsible for compliance matters such as employment contracts, statutory benefit management, and more.
Read moreEOR Platform
An Employer of Record (EOR) platform helps manage payroll, employee benefits, taxes, and local HR compliance for globally dispersed teams.
Read moreEOR vs In-House HR?
You have two ways of hiring a global team compliantly: employ them directly or work with an EOR. They differ in terms of time, money, and personnel.
Read moreEU Directive vs EU Regulation
EU Directives and EU Regulations are often confused, but they work very differently. Here's what employers need to know when hiring across Europe.
Read moreF
Foreign Employer
A foreign employer is a company based in one country that directly employs workers in another country without establishing a local legal entity.
Read moreG
Global Payroll
Payroll is the process of paying employees their salaries. Running multi-country payroll requires time and resources, and requires much consideration.
Read moreH
HR Compliance
HR compliance refers to ensuring an organisation's HR policies, processes and practices are in accordance with local laws, regulations and guidelines.
Read moreHybrid Work
Hybrid work combines elements of both remote work and in-person work, meaning employees can divide their time between the office and other locations.
Read moreI
Independent Contracting
Independent contracting is a work arrangement between an individual or business and another business providing services on a contract basis.
Read moreIndependent Contractor
An independent contractor is a self-employed person or company that provides specific services to a client based on a contract.
Read moreInternational Employee Benefits
International employee benefits refer to compensation for employees who work for a multinational company or are employed outside their home country.
Read moreL
Labour Laws
Labour laws refer to the extensive set of regulations that govern various aspects of the employer-employee relationship.
Read moreLegal Entity
A legal entity is any organisation that the law recognises as having rights, responsibilities, and obligations independent of the people who own it.
Read moreLocation-Agnostic Pay
Location-agnostic pay refers to when an employer offers a fixed salary or wage that is not tied to the physical location of the employee's work.
Read moreM
Mandatory Benefits
Mandatory benefits are the standard benefits and protections that employers are legally required to provide to their employees.
Read moreO
Offboarding
Offboarding refers to the structured process of transitioning an employee out of an organisation when they exit the company.
Read moreP
Paid Time Off (PTO)
Paid time off refers to the designated time that employees are allowed to take off from work while still being paid regular wages in their absence.
Read morePayslip
A payslip is a document that employers provide to their employees each pay period that may be distributed electronically or via physical copy.
Read morePerformance Review
A performance review is a structured conversation between an employee and their manager about work progress, achievements, and areas for development.
Read morePermanent Establishment Risk
Permanent establishment (PE) risk refers to the potential for a company to accidentally create a taxable presence in a foreign country.
Read morePortage Salarial
Portage Salarial is an employment arrangement in France, combining the flexibility of freelancing and the security of traditional employment.
Read moreProbation Period
A probation period is a phase at the start of employment where a new employee's performance and cultural fit are evaluated by the employer.
Read moreProfessional Employer Organisation (PEO)
A professional employer organisation (PEO) is a company or organisation that provides comprehensive HR and employment-related services to other businesses.
Read moreR
Remote Compensation Policy
A remote compensation policy is a set of guidelines established by an organisation to define how employees who work remotely abroad are compensated.
Read moreRemote Work
Remote work refers to a work arrangement between employers and their employees where workers perform their job from outside the office.
Read moreRemote Work Policy
A remote work policy is a formal document that sets out a company's rules, expectations, and procedures for employees working from outside the office.
Read moreResume Screening
Resume screening is the process of reviewing and evaluating job applications to identify candidates who meet your basic requirements.
Read moreS
Severence Pay
Severance pay is money an employer provides to an employee when employment ends through no fault of their own.
Read moreShadow Payroll
Shadow payroll is a tax compliance process where companies calculate and pay foreign taxes for employees who work abroad.
Read moreStatutory Salary Deductions
Statutory salary deductions refers to taxes employers calculate and withhold from employees’ pay checks based on earnings and applicable tax rates.
Read moreSuperannuation
Superannuation, commonly referred to as "super," is a compulsory system in Australia designed to provide employees with income during retirement.
Read moreT
Tax Residency
Tax residency refers to where an individual pays taxes based on where they reside and work, and is determined by how long they’ve lived there.
Read moreTripartite Contracts
A tripartite contract is a three-way agreement made between three parties, outlining the terms, conditions, rights, and obligations of each.
Read moreW
Work from Anywhere
Work from anywhere is a flexible work arrangement between an organisation and its employees that gives workers the freedom to choose where they work.
Read moreWork from Home Allowance
A work from home allowance is money provided to employees working remotely to cover expenses associated with setting up a remote work environment.
Read moreZ
Zero-hours Contract
A zero-hours contract is an employment arrangement where employers provide no guaranteed working hours and employees are only paid for hours worked.
Read more#
13th Month Pay
The 13th month salary is an extra payment that is usually equal to one month’s basic salary, typically paid at the end of the year.
Read more30% Ruling
The 30% ruling is a Dutch tax benefit that allows employers to pay up to 30% of a qualified foreign employee's salary tax-free for a maximum of five years.
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