EOR Glossary

An independent worker who provides services to a company without being an employee, receiving payment reported on IRS Form 1099.

Brazil's mandatory 13th-month salary ("Thirteenth Salary"), a legally required bonus equal to one month's pay, paid in two installments — the first between February and November, and the second by December 20.

A mandatory year-end bonus in the Philippines equal to one-twelfth of an employee's total basic salary earned during the year.

A document confirming that an employee working temporarily in another EU or EEA country remains covered by their home country's social security system, avoiding duplicate contributions.

The UK Advisory, Conciliation and Arbitration Service, which provides workplace guidance and runs the compulsory conciliation step before most employment tribunal claims.

EU legislation protecting employees when a business or part of one is transferred to a new owner, preserving their employment and terms — the source of the UK's TUPE rules.

Argentina's federal tax and customs authority, meaning "Federal Administration of Public Revenue," responsible for collecting income tax, VAT, social security contributions, and customs duties.

Private pension fund administrators in Chile, Peru, and Colombia, meaning "Pension Fund Administrator," that manage individual retirement savings accounts funded by mandatory employee and employer contributions.

UK regulations giving temporary agency workers the right to the same basic pay and conditions as comparable direct employees after a qualifying period on the same assignment.

A designation giving authority to act on behalf of another party in specific matters, often used in insurance and benefits contexts.

A mandatory year-end bonus ("Christmas bonus") required by law in several Latin American countries including Mexico, Argentina, and Guatemala, typically equivalent to one month's salary or more.

Paid time off work that employees accumulate and can use for vacation, rest, or personal activities.

An extra percentage paid on top of an Australian employee's ordinary wage while they are taking annual leave, required by many modern awards and agreements.

Legislation prohibiting less favourable treatment of workers and candidates based on protected characteristics such as sex, race, age, disability, and religion.

Employer contributions ("employer contributions") to social security and government funds in Latin American countries, encompassing pension, health insurance, workplace risk, unemployment, and other mandatory levies calculated as a percentage of employee salary.

Software that automates the recruitment process by managing job postings, applications, candidate screening, and hiring workflows.

A UK charge on employers with an annual pay bill above a threshold, funding apprenticeship training, collected monthly through PAYE.

Colombia's mandatory workplace risk insurance system, meaning "Occupational Risk Administrator," funded entirely by employers to cover work-related injuries, occupational diseases, and death.

Family allowances ("family allocations") paid in several Latin American countries, providing monthly cash benefits to employees with children, spouses, or dependents, typically funded through employer contributions to a government family allowance fund.

A document outlining the terms and conditions of an international work assignment, supplementing or replacing the standard employment contract.

An employment arrangement where either party can end the relationship at any time, for any legal reason, without advance notice.

Tracking and managing employee presence, absences, tardiness, and leave to maintain workforce availability.

The gradual reduction in workforce size as employees leave and are not replaced, or more broadly any employee departures.

A Singapore scheme under which employers submit employee income information directly to the tax authority, so it is pre-filled into employees' tax returns.

A mandatory transportation allowance in Colombia ("transportation subsidy") paid to employees earning up to two times the minimum monthly wage, designed to cover commuting costs to and from work.

Verification of a job candidate's history, which may include criminal records, employment history, education, credit, and references.

Conducting pre-employment screening within the legal limits each country places on what you may check, how, and with what consent.

The process of managing employee benefit programs including enrollment, eligibility, communications, and compliance.

A German works council: an elected body representing employees at an establishment, with statutory rights to information, consultation and genuine co-determination on defined matters.

How you design and pay employee bonuses, including type, timing, conditions, and legal treatment. The rules vary by country and careless design creates binding obligations.

Indonesia's national health insurance program providing healthcare coverage for all Indonesian residents and foreign workers.

Indonesia's mandatory social security program for workers, providing protection for workplace accidents, death, old age savings, and pension.

An extension of a foreign company that operates in another country without being a separate legal entity.

The practice of contracting entire business functions, such as customer support or finance, to an external provider that delivers them with its own staff.

Meeting legal requirements for employees who travel internationally for work, including visa rules, tax obligations, and immigration thresholds.

Activities and processes supporting employee growth and progression through their professional careers.

Employer-paid social security contributions ("social charges") in Latin American countries, covering pension, health insurance, unemployment, and other mandatory benefits that add significantly to the total cost of employment.

An employment certificate or reference letter ("work letter") that employers across Latin America are legally required to provide to departing employees, documenting their position, tenure, and salary history.

The right of an eligible Australian casual employee to move to permanent part-time or full-time employment after a qualifying period of regular work.

An additional percentage paid on top of the base rate to Australian casual employees, compensating for the paid leave and notice entitlements they do not receive.

The two principal French employment contract types: the CDI, an open-ended contract that is the legal default, and the CDD, a fixed-term contract permitted only for specific listed reasons.

A specialized team providing deep expertise and best practices in a specific HR discipline to the broader organization.

Documentation proving a worker remains covered by their home country's social security system while working abroad, exempting them from host country contributions.

A mandatory severance savings benefit in Colombia, meaning "severance pay," where employers must deposit one month's salary per year into a severance fund (fondo de cesantías) for each employee.

Statutory paid leave for Singapore-based parents of young children, with entitlement and government funding depending on the child's citizenship and the parent's service.

Brazil's Consolidation of Labor Laws, meaning "Consolidation of Labor Laws," the comprehensive labor code that governs all aspects of formal employment including contracts, working hours, benefits, termination, and union relations.

An employment arrangement where two organizations share certain employer responsibilities and liabilities for the same worker.

US law requiring employers to offer continued health coverage to employees and dependents after qualifying events like job loss.

A written contract between an employer and a union representing employees, establishing terms and conditions of employment.

A written agreement between employers and worker representatives that sets pay and conditions, often binding whole sectors beyond the signatory parties.

An arrangement where an employee regularly travels between their home country and work location rather than relocating permanently.

Singapore's points-based framework for assessing Employment Pass applications, scoring both the individual candidate and the hiring firm.

The process of comparing an organization's pay practices against market data to ensure competitive and equitable compensation.

An organization's guiding principles and approach to how it pays and rewards employees.

A systematic review of employment practices to ensure adherence to applicable laws, regulations, and internal policies.

A contract requiring employees to protect sensitive business information and prohibiting disclosure of proprietary knowledge.

When an employee resigns due to the employer's conduct making continued employment intolerable, treated as if the employer terminated the employment.

Workers who are not permanent employees, including contractors, freelancers, temporary workers, and consultants.

The unbroken period of service that determines which UK statutory employment rights an employee has accrued, and how much they are worth.

Incorrectly classifying a worker as an independent contractor when they should legally be treated as an employee, exposing the company to tax penalties and back-pay obligations.

A service that formally engages independent contractors on a company's behalf, taking on the classification assessment, contracting and payment compliance.

A fixed-term employment contract ("fixed-term contract") used across Latin America with legally defined maximum durations, renewal limits, and automatic conversion rules that vary by country.

A collective bargaining agreement ("collective work agreement") negotiated between employers or employer associations and labor unions in Latin America, which often establishes wages, benefits, and working conditions above the legal minimums.

The total expense to an employer of having an employee, including salary, taxes, benefits, and administrative costs.

Additional compensation provided to employees working in locations with higher living costs than their home location.

Singapore's mandatory savings scheme, funded by employer and employee contributions, covering retirement, healthcare and housing needs through separate designated accounts.

A mandatory savings benefit in Peru, meaning "Compensation for Time of Service," where employers deposit the equivalent of roughly one month's salary per year into a special employee bank account as a form of unemployment insurance.

The exposure you face when paying international employees in a different currency. Exchange rate movements change your real payroll costs from month to month.

Legal requirements governing how employers collect, use, store, and protect employee personal information.

Meeting the legal requirements that govern how you collect, use, store, and transfer employee personal data, with the EU's GDPR as the leading standard.

A retirement plan promising specific benefits at retirement, typically based on salary history and years of service.

A retirement plan where contributions are defined but benefits depend on investment performance, with employees bearing investment risk.

The maximum proportion of an employer's Singapore workforce that may be S Pass and Work Permit holders, set by sector.

Immigration authorization allowing family members of a work visa holder to accompany them to the host country.

Termination for just cause ("dismissal with just cause") in Latin American labor law, which exempts the employer from paying severance but requires documented proof of serious employee misconduct.

Support helping relocating employees settle into a new location, including area orientation, housing search, school search, and administrative tasks.

Mandatory public holidays ("obligatory rest days") in Latin American countries on which employees must receive paid time off, with premium pay rates (typically double or triple) required if they are asked to work.

Electronic transfer of wages directly into an employee's bank account, replacing paper paychecks.

An arrangement where a company hires a worker onto its own payroll and contracts, acting as the legal employer without any intermediary.

Employment arrangement where a company hires an employee directly onto their own payroll without using a staffing agency or intermediary.

Formal steps taken by employers to address employee misconduct or performance issues, ranging from warnings to termination.

The Department of Labor and Employment, the Philippine government agency responsible for labor policies, employment regulations, and worker protection.

When the same income is taxed by two or more countries, typically occurring when someone has tax obligations in multiple jurisdictions.

A bilateral agreement between two countries that decides which one taxes income earned across borders. It protects you and your employees from paying tax twice on the same earnings.

Employment Insurance System providing financial assistance to Malaysian workers who lose their jobs, along with job search assistance and training.

German statutory parental leave, giving parents the right to unpaid time off with job protection during and after the leave, separate from the state parental allowance.

The UAE's workforce nationalisation programme, requiring private-sector employers above a headcount threshold to employ a rising percentage of Emirati nationals, with financial penalties for shortfalls.

Non-wage compensation provided to employees in addition to their salary, including health insurance, retirement plans, paid leave, and other perks.

A tool that estimates the full cost of employing someone in a given country by adding mandatory employer contributions and statutory benefits to gross salary.

The emotional commitment and connection employees feel toward their organization and its goals.

The sum of all interactions and perceptions an employee has throughout their journey with an organization.

A document provided by employers outlining company policies, procedures, expectations, and employee benefits.

The management of the employer-employee relationship, focusing on maintaining positive, productive working relationships.

Technology allowing employees to access and manage their own HR information and perform routine transactions without HR involvement.

A company program allowing employees to purchase company stock at a discount, often through payroll deductions.

India's mandatory retirement savings scheme, into which both employer and employee contribute a percentage of monthly wages, administered by the Employees' Provident Fund Organisation.

A third-party company that legally employs workers on behalf of another business, handling all employment responsibilities in a specific country.

The total of what it costs to employ someone through an Employer of Record: the provider's fee plus the employee's salary and all mandatory employer contributions in that country.

The full range of employment administration functions provided by an EOR including hiring, payroll, benefits, compliance, and offboarding.

Singapore's principal employment legislation, setting out basic terms and conditions for employees, with additional protections for those below a salary threshold.

A legally binding agreement between employer and employee establishing the terms and conditions of the employment relationship.

Singapore's work pass for foreign professionals, managers and executives, subject to a qualifying salary and to points-based assessment under COMPASS.

Legislation that sets minimum workplace entitlements such as wages, hours, leave, and termination notice.

The UK judicial body that hears employment disputes such as unfair dismissal, discrimination and unpaid wages claims, operating separately from the ordinary court system.

Immigration authorization permitting a foreign national to work in a country for a specific employer or in a particular capacity.

A collective agreement negotiated between an Australian employer and its employees, which replaces the relevant modern award once approved by the Fair Work Commission.

The process of establishing a legal business presence in a country, including company registration, licensing, and regulatory compliance.

The distinction between an Employer of Record, which legally employs staff on your behalf in countries where you have no entity, and a PEO, which co-employs alongside your existing entity.

Malaysia's mandatory retirement savings scheme where both employers and employees contribute a percentage of monthly wages to a government-managed fund.

Legal principles and practices ensuring all individuals have equal access to employment opportunities without discrimination based on protected characteristics.

Paying employees partly in company ownership through stock options, RSUs, or share purchase plans. Their upside becomes aligned with the company's growth.

Peru's social health insurance system (Seguro Social de Salud), meaning "Social Health," funded through a mandatory 9% employer contribution on employee salaries, providing healthcare coverage to workers and their dependents.

Job stability protections ("labor stability") embedded in Latin American labor law that make it difficult and expensive to terminate employees, including severance requirements, reinstatement rights, and protections for special categories of workers.

EU legislation requiring employers to disclose pay ranges to candidates, report on gender pay gaps and act where unexplained gaps exceed a defined threshold.

EU legislation requiring employers above a headcount threshold to operate secure internal reporting channels and protecting people who report breaches of EU law from retaliation.

A body representing employees across an undertaking's European operations, required for companies above size thresholds operating in multiple member states.

A conversation with departing employees to understand their reasons for leaving and gather feedback about their experience.

A person living and working in a country other than their country of citizenship, typically sent by their employer on an international assignment.

Singapore requirements that employers consider local candidates fairly before hiring foreign professionals, including advertising roles on a national jobs portal.

The primary legislation governing employment relationships in Australia, establishing minimum employment standards, unfair dismissal protection, and collective bargaining frameworks.

Australia's national workplace relations tribunal, which sets minimum wages, makes and reviews modern awards, approves enterprise agreements and hears unfair dismissal claims.

The official tax invoice issued through China's state system, required as evidence of a transaction for it to be deductible or reimbursable.

Brazil's mandatory vacation entitlement of 30 calendar days per year with a constitutionally guaranteed one-third bonus (terço de férias) paid on top of regular salary during the vacation period.

Brazil's mandatory employment guarantee fund, meaning "Guarantee Fund for Length of Service," where employers deposit 8% of each employee's monthly salary into a government-administered account that workers can access upon termination or other qualifying events.

The Federal Insurance Contributions Act tax that funds Social Security and Medicare programs in the United States, paid by both employers and employees.

A termination settlement document used across Latin America ("settlement payment") that details all final payments owed to an employee upon ending their employment, including unpaid wages, vacation, and severance.

An employment agreement that automatically ends on a specified date or upon completion of a defined project or task.

An employer-sponsored account allowing employees to set aside pre-tax dollars for healthcare or dependent care expenses.

The Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for US workers.

The Family and Medical Leave Act provides eligible US employees with up to 12 weeks of unpaid, job-protected leave per year for family and medical reasons.

Chile's public health insurance fund (Fondo Nacional de Salud), meaning "National Health Fund," which provides universal healthcare coverage funded through mandatory 7% employee salary contributions.

A monthly charge Singapore employers pay for each S Pass and Work Permit holder, used to moderate reliance on foreign labour.

The annual certificate an Indian employer issues to each employee, setting out salary paid and income tax withheld, used by the employee to file their personal tax return.

A US government form used to verify the identity and employment authorization of individuals hired for work in the United States.

An IRS form employees complete to indicate their tax situation and determine federal income tax withholding from paychecks.

Additional compensation beyond regular wages, including perks, allowances, and non-cash benefits provided by employers.

An Australian tax paid by employers on certain non-cash benefits provided to employees, calculated and reported separately from income tax and on its own tax year.

A unit of measurement that represents the workload of a full-time employee, used to calculate staffing levels and compare part-time and full-time workers.

The closing account between employer and departing employee, covering final salary, unused leave, statutory entitlements and any sums owed back, settled after the last working day.

A period during the notice period when an employee remains employed but is not required to work, often used to protect business interests.

A legal process requiring employers to withhold part of an employee's wages to satisfy debts or obligations.

An entity established specifically to employ internationally mobile workers or workers in multiple countries, centralizing global employment.

Software that consolidates international hiring, employment, payroll and contractor management into one system, usually combined with Employer of Record services.

The function that manages people across multiple countries, aligning hiring, pay, benefits, and compliance with local law while keeping company wide standards consistent.

The practice of moving employees across international borders for work assignments, including all related policies, processes, and support.

The process of paying employees across multiple countries while complying with each location's tax laws, labor regulations, and currency requirements.

A company that manages payroll processing across multiple countries, consolidating international payroll administration.

Mandatory bonus payments in Peru, equivalent to one full month's salary each, paid twice per year in July (Fiestas Patrias) and December (Navidad) to all employees.

A lump sum an employer owes an employee for long service, most commonly associated with India and the Gulf states, where it is a statutory entitlement rather than a discretionary bonus.

A formal process for employees to raise concerns, complaints, or disputes with their employer for resolution.

The total salary amount before any deductions for taxes, benefits, or other withholdings.

Organizational rules prohibiting harassment in the workplace, establishing reporting mechanisms, investigation procedures, and consequences for violations.

Additional compensation for employees working in locations with difficult living conditions such as safety concerns, lack of infrastructure, or extreme climates.

The total number of employees in an organization or specific business unit, often used as a budgeting and planning metric.

A tax-advantaged account allowing individuals with high-deductible health plans to save for medical expenses.

Overtime pay ("extra hours") in Latin American countries, subject to strict legal limits and premium rates that vary by country, typically ranging from 25% to 100% above the regular hourly rate.

Employer-provided support for employee housing costs, either as a monetary allowance or provision of company housing.

An HR professional who works closely with business leaders to align people strategy with business objectives.

A centralized HR service delivery model handling high-volume, routine HR transactions efficiently.

China's household registration system, which ties an individual to a locality and affects their access to public services, social insurance and schooling in the city where they work.

Software that manages employee data, HR processes, and workforce administration in a centralized platform.

An employment arrangement combining remote work and in-office presence, typically requiring employees to be on-site for a specified number of days per week.

The estimated tax an employee would pay if they remained in their home country, used as the basis for tax equalization programs.

Ensuring employees have proper authorization to work in the countries where they perform services.

Argentina's personal income tax ("earnings tax") withheld from employee salaries by employers on a monthly basis, using progressive tax brackets that are frequently adjusted due to the country's high inflation.

Mexico's national social security institute, meaning "Mexican Social Security Institute," which provides healthcare, disability, maternity, retirement, and life insurance benefits to workers, funded through employer, employee, and government contributions.

Statutory severance compensation ("termination indemnity") paid to employees dismissed without just cause across Latin America, with formulas that typically increase based on length of service.

Mexico's national housing fund institute, meaning "Institute of the National Housing Fund for Workers," funded through a mandatory 5% employer contribution on each employee's salary to provide housing credits and mortgage loans.

Contractual provisions transferring ownership of work-related inventions, creations, and intellectual property from employees to employers.

Moving an employee from one entity of a multinational company to another entity in a different country.

The Saudi Arabian residence permit that allows a foreign national to live and work in the Kingdom, tied to a sponsoring employer and requiring periodic renewal.

UK legislation designed to identify contractors who work like employees for tax purposes, even when operating through their own limited company.

The annual return of employee earnings that Singapore employers must prepare for each employee, reporting remuneration for the preceding calendar year to the tax authority.

Private health insurance institutions in Chile (Instituciones de Salud Previsional), meaning "Preventive Health Institutions," that provide an alternative to the public health system (Fonasa) for employees who choose to direct their mandatory health contributions to a private plan.

A document outlining the duties, responsibilities, qualifications, and requirements of a specific position.

A systematic process for evaluating and ranking jobs based on their relative value to the organization.

The legal working day or working hours ("work day") in Latin American countries, defining maximum daily and weekly hours, shift types, and rest period requirements that vary by country.

The sponsorship framework historically used across the Gulf states, under which a migrant worker's legal status is tied to a specific employer who acts as their sponsor.

A German short-time work scheme in which hours are temporarily reduced during a downturn and the state replaces part of the lost pay, allowing employers to retain staff instead of making redundancies.

The primary legislation governing employment relationships in a country, establishing fundamental rights, obligations, and standards for workers and employers.

The practice of meeting every legal obligation that applies to an employment relationship in a given country, from hiring through termination.

A requirement to demonstrate that no suitable local workers are available before hiring a foreign national for a position.

An organized association of workers formed to protect and advance their rights and interests through collective action.

Software platform for delivering, tracking, and managing employee training and development programs.

Payment made to an employee for accrued but unused leave, either during employment or as part of their final settlement when they leave.

The process of tracking and administering employee time off, including vacation, sick leave, and other absence types.

Maternity leave ("maternity license") mandated across Latin American countries, ranging from 12 to 26 weeks of fully paid leave, typically funded through social security systems rather than directly by the employer.

The full severance package ("labor settlement") paid to employees in Latin American countries upon involuntary termination, typically more generous than a finiquito and governed by strict legal requirements.

A legally registered business presence in a country, such as a subsidiary or branch, that lets a company employ staff directly and take on local tax obligations.

The full body of employment rules that applies in a specific place, combining national law with regional, sectoral, and workplace-level requirements.

The process of transitioning an expatriate employee to local employment terms and conditions in their host country.

German wage tax, withheld from salary by the employer each month and paid to the tax office as an advance against the employee's annual income tax liability.

An Australian employee entitlement providing extended paid leave after a long period of continuous service with the same employer.

An international work assignment typically lasting one to five years, involving relocation and comprehensive support packages.

A company that manages an organization's contingent workforce program, including vendor relationships and compliance.

Technology enabling managers to perform HR transactions for their team members directly, such as approving leave or initiating pay changes.

A foundational contract establishing general terms between parties, supplemented by statements of work or orders for specific services.

A German form of marginal employment below a set monthly earnings threshold, taxed and treated differently from regular employment, with reduced contributions for the employee.

The lowest hourly, daily, or monthly pay that employers are legally required to pay workers.

Legal documents in Australia that set minimum pay rates and employment conditions for specific industries or occupations.

Payroll management for employees in two or more countries through one coordinated model, consolidating currencies, tax systems, and reporting into a single process.

Managing payroll for employees in multiple countries, requiring navigation of different laws, currencies, and practices.

Supplementary health cover in France that tops up state reimbursement, which employers are legally required to offer employees and to fund at least half of.

The eleven minimum entitlements guaranteed to every employee in the Australian national workplace relations system, which no award, agreement or contract can undercut.

A UK tax on earnings and self-employment profits that funds state benefits including the State Pension, unemployment benefits, and the National Health Service.

The statutory minimum hourly rate for UK workers at or above a qualifying age, set annually and higher than the National Minimum Wage rates that apply to younger workers.

The amount an employee receives after all deductions have been taken from their gross salary, also known as take-home pay.

The Spanish term for "payroll," referring to the complete process of calculating employee wages, tax withholdings, social security contributions, and net pay across Latin American countries.

A contract clause restricting an employee's ability to work for competitors or start a competing business after leaving employment.

A contractual restriction preventing an employee from working for competitors or starting a competing business for a period after leaving.

A contract obliging a party to protect confidential information and not disclose it to others, used with employees, contractors, and business partners.

An arrangement where a departing employee pays for, or has deducted, the portion of their notice period they do not serve, so they can leave earlier than their contract allows.

Argentina's union-managed health insurance system ("social work"), providing healthcare coverage to employees and their families, funded through mandatory employer and employee contributions linked to the worker's industry union.

Laws, regulations, and practices aimed at protecting workers from workplace hazards and ensuring safe and healthy working conditions.

The formal process of managing an employee's departure from an organization, including administrative tasks, knowledge transfer, and exit procedures.

Indonesia's comprehensive legislation reforming labor, investment, and licensing regulations to improve business environment and competitiveness.

The process of integrating new employees into an organization, including administrative tasks, training, and cultural introduction.

A designated period when employees can enroll in, change, or opt out of benefit plans for the upcoming plan year.

Additional compensation paid to employees who work beyond normal working hours, typically at a premium rate.

The UK form reporting expenses and benefits in kind provided to employees, used to calculate the tax due on non-cash benefits and the employer's associated National Insurance.

A UK tax form provided by employers when an employee leaves a job, showing earnings and tax paid during that employment.

An annual UK tax certificate showing total pay and deductions for the tax year, provided to employees by their employer after each tax year ends.

The Home Development Mutual Fund in the Philippines providing housing loans and savings programs for employed Filipinos.

Mandatory employer contributions to semi-public institutions in Colombia ("parafiscal contributions"), funding SENA (vocational training), ICBF (family welfare), and Caja de Compensación (compensation fund) at a combined rate of 9% of payroll.

Time off work for parents to care for a new child, including maternity leave for birth mothers, paternity leave for fathers, and adoption leave.

A government-funded payment for eligible Australian parents, made at the national minimum wage rate, separate from any employer-funded parental leave scheme.

The principle and practice of compensating employees fairly for comparable work regardless of gender, race, or other protected characteristics.

How often employees receive their wages, such as weekly, biweekly, semi-monthly, or monthly.

The UK system where employers deduct income tax and National Insurance contributions from employee wages before payment.

Australia's pay-as-you-go system, under which employers withhold income tax from employee wages and remit it to the Australian Taxation Office.

A schedule defining pay periods, processing dates, and payment dates for payroll administration.

Following all laws and regulations that govern how employees are paid, including tax withholdings, wage calculations, payment timing, and government reporting.

Connecting payroll systems with other business applications to automate data flow and reduce manual processing.

Contracting with an external provider to handle payroll processing, tax filing, and related administrative tasks.

The administrative function of calculating employee pay, withholding taxes, and distributing wages while maintaining compliance with regulations.

Taxes imposed on employers or employees based on wages and salaries paid, used to fund government programs like social security and unemployment insurance.

A document provided to employees showing earnings, deductions, and net pay for a pay period.

Higher hourly rates required by Australian awards and agreements for work at unsociable times, such as evenings, weekends, public holidays and shift work.

Regular payments made to retired employees, typically from employer-sponsored defined benefit plans or government programs.

A formal document outlining specific performance deficiencies, required improvements, support provided, and consequences of not meeting expectations.

The ongoing process of setting expectations, monitoring progress, providing feedback, and developing employee capabilities to improve performance.

The probationary period ("trial period") at the start of employment in Latin American countries, during which either party can end the relationship with reduced or no severance obligations, with legally defined maximum durations varying by country.

A tax concept that determines when a foreign company has enough presence in a country to be subject to local corporate income tax.

The danger that a company's activities in a foreign country create a taxable presence there, exposing its corporate profits to local taxation.

PhilGEPS stands for the Philippine Government Electronic Procurement System — the country's single, centralized online portal for government procurement, run by the Procurement Service under the Department of Budget and Management (PS-DBM). Government agencies post their bid opportunities, awards, and contracts there, and suppliers register on it to bid.

The Philippines' national health insurance program providing affordable medical care to all Filipino citizens and employees.

Schemes in certain Australian states and industries where long service leave entitlements accrue across employers within the industry rather than resetting when a worker changes jobs.

A French employment model where consultants work through an intermediary company that handles their employment administration.

EU rules requiring that employees temporarily sent to work in another member state receive the host country's core terms and conditions, including its pay rates.

The minimum wage that must be paid to foreign workers on certain visas, based on occupation and location wage data.

A seniority premium in Mexico ("seniority bonus") equal to 12 days of salary per year of service (capped at twice the minimum wage), paid to employees upon voluntary resignation after 15+ years or upon any involuntary termination.

A mandatory mid-year and year-end bonus in Colombia, meaning "Service Premium," equal to one month's salary per year paid in two installments, required for all employees earning up to a certain threshold.

A mandatory vacation bonus in Mexico ("vacation premium") equal to at least 25% of the employee's salary for each vacation day, paid on top of regular vacation pay when the employee takes their annual leave.

An initial employment period allowing employers to assess new employees' suitability for a role before confirming permanent employment.

A company that enters into a co-employment arrangement with businesses to provide HR services including payroll, benefits administration, and compliance support.

A company providing comprehensive HR services through a co-employment model where both the PEO and client share employer responsibilities.

A small tax on employment income levied by individual Indian states rather than by the national government, deducted from salary by the employer and paid to the state.

Singapore's sector-based wage floor system, setting minimum pay that rises with skills and responsibility in covered industries, in place of a universal minimum wage.

Mexico's mandatory profit-sharing program, meaning "Workers' Participation in Profits," requiring companies to distribute 10% of their annual pre-tax profits to all employees each year.

Days designated by law or custom when most businesses close and employees receive time off, often with pay.

An employee pay stub or pay slip ("salary receipt") required by law in most Latin American countries, documenting gross salary, deductions, employer contributions, and net pay for each pay period.

When an organization transfers all or part of its recruitment activities to an external provider.

An arrangement where a company transfers all or part of its recruitment function to an external provider that sources and screens candidates under the client's brand.

Termination of employment because the job is no longer needed, typically due to business restructuring, economic conditions, or operational changes.

A document confirming that an employee has formally completed their notice period and been released from their obligations, standard practice in India and widely requested by the next employer.

Support provided to employees moving to a new location for work, including moving expenses, temporary housing, and settling-in services.

Organizational guidelines establishing rules and expectations for employees working from locations outside the traditional office.

The process of returning an employee to their home country after completing an international assignment.

A foreign company presence limited to non-commercial activities like market research, liaison, or promotion, without conducting actual business.

A promise to give employees company shares after satisfying vesting conditions, commonly used as equity compensation.

Efforts and strategies to keep valuable employees from leaving an organization.

Payment made to Singapore employees whose roles are made redundant, governed largely by tripartite guidelines and contract rather than by a statutory formula.

Compensation paid in a later cycle to correct an underpayment in an earlier one, arising from backdated raises, missed hours or payroll errors.

A legal or contractual right allowing employees to disengage from work communications outside working hours without disadvantage, adopted in several countries and under discussion in others.

Verification that an individual has legal authorization to work in a particular country before employment begins.

The process of confirming that a person is legally authorised to work in a country before their employment begins.

A Singapore work pass for mid-skilled foreign employees meeting salary and qualification criteria, subject to employer quotas and a monthly levy.

Argentina's mandatory 13th-month salary, meaning "Supplementary Annual Salary," paid in two equal installments in June and December to all employees.

The integrated daily salary used in Mexico to calculate employer social security (IMSS) and housing fund (INFONAVIT) contributions, which includes base pay plus most benefits and perks expressed as a daily rate.

A defined range of pay rates for positions at a particular grade level, with minimum, midpoint, and maximum amounts.

Comparing the salaries you offer against current market data for the same role, seniority, and location. You pay competitively without overspending.

Saudi Arabia's workforce nationalisation policy, administered through the Nitaqat system, which requires employers to maintain a minimum proportion of Saudi nationals among their staff.

A temporary assignment where an employee works for a different organization or department while remaining employed by their original employer.

A contract documenting the terms of a temporary employee assignment to another organization or business unit.

A contract between an EOR or similar provider and their client company specifying the services to be provided and terms of the relationship.

A legally binding UK agreement in which an employee accepts a payment and gives up the right to bring specified claims, valid only if strict statutory conditions are met.

Compensation paid to employees upon termination of employment, often required by law based on length of service and reason for termination.

A secondary payroll calculation that tracks compensation for tax purposes in a country other than where the employee is paid.

Representing an employment relationship as independent contracting in Australia, which is prohibited under the Fair Work Act and carries civil penalties.

A temporary international work assignment typically lasting less than 12 months, with the employee expected to return to their home location.

Time off work when an employee is ill or injured, which may be paid or unpaid depending on employer policy and local law.

A labor union ("trade union") in Latin American countries, which plays a significant role in negotiating collective agreements, representing workers in disputes, and in some countries automatically receiving mandatory dues from all employees in a sector.

An Australian government reporting system where employers report payroll information to the ATO each time they run payroll.

A compulsory Singapore levy payable by employers for every employee, funding national workforce training programmes.

The difference between the skills employers need and the skills available in the workforce.

Bilateral agreements between countries that prevent double social security taxation and protect benefit rights for workers who split their careers between countries.

Social Security Organisation in Malaysia providing employment injury and invalidity pension scheme coverage for employees.

Paying an employee's compensation through payrolls in two or more countries, each handling a portion of total earnings.

The Philippines' government-run social insurance program providing benefits for sickness, maternity, disability, retirement, and death to private sector workers.

A company that recruits employees and places them with client organizations, often for temporary assignments.

A business that recruits and supplies workers to other organizations, typically employing the workers themselves.

A document defining specific work deliverables, timelines, and payment terms for a contractor or vendor engagement.

Employee benefits that employers are legally required to provide under a country's laws, such as social security contributions, health insurance, and paid leave.

Payments UK employers make to eligible employees during maternity leave, partially funded by the government.

The minimum notice a UK employer must give to end employment, increasing with length of service, which the contract can improve on but not reduce.

UK statutory pay for eligible employees taking paternity leave following the birth or adoption of a child, paid at a flat rate or a proportion of earnings, whichever is lower.

The minimum payment a UK employer owes an employee dismissed for redundancy, calculated from age, length of service and weekly pay, subject to statutory caps.

The minimum amount UK employers must pay employees who are off work sick for four or more consecutive days.

The right to purchase company shares at a predetermined price, often granted to employees as part of their compensation package.

A plan giving employees the right to buy company shares at a fixed price after vesting. They profit from the company's growth, commonly through an Employee Stock Option Plan.

A company owned or controlled by another company (the parent), typically established to conduct business in a specific country or region.

Identifying and developing potential future leaders to fill key positions when they become vacant.

Peru's national tax and customs authority, meaning "National Superintendency of Customs and Tax Administration," responsible for tax collection, customs enforcement, and employer payroll compliance.

Australia's compulsory retirement savings system where employers contribute a percentage of employee earnings to a superannuation fund.

The compulsory minimum contribution an Australian employer must pay into an employee's superannuation fund, calculated as a percentage of ordinary time earnings.

State Unemployment Tax Act contributions: US state-level unemployment insurance taxes paid by employers, at rates that vary by state and by the employer's own claims history.

The strategic process of identifying, attracting, and hiring skilled workers to meet organizational needs.

The integrated processes for attracting, developing, engaging, and retaining employees to meet organizational goals.

An employer policy ensuring expatriate employees pay roughly the same taxes they would have paid if they stayed in their home country.

A personal identifier issued by the Australian Taxation Office, which employees provide to their employer via a declaration so that tax is withheld at the correct rate.

The jurisdiction where an individual or company is considered resident for tax purposes, determining tax obligations and treaty benefits.

The country where you or your employees are legally resident for tax purposes. It determines where income tax is owed and which treaty protections apply.

An agreement between two countries establishing rules for taxing cross-border income and providing relief from double taxation.

Meeting every legal requirement that applies when ending an employment relationship, including grounds, procedure, notice, and payments.

The advance warning time required by law or contract before ending an employment relationship.

Indonesia's mandatory religious holiday bonus, typically equal to one month's salary, that employers must pay to employees before their religious holiday.

A pricing model where clients pay based on actual time spent and materials used, rather than a fixed project price.

Recording the hours employees work for payroll, billing, project management, or compliance purposes.

The complete package of compensation and benefits an employer provides, including pay, benefits, work-life balance, performance recognition, and development opportunities.

The pricing of goods, services, and intangibles transferred between related entities in different countries, subject to tax authority scrutiny.

UK regulations that automatically transfer employees, on their existing terms, when the business or service they work in changes hands, protecting them from dismissal because of the transfer.

The rate at which employees leave and are replaced in an organization over a given period.

A company that employs contractors on behalf of agencies or end clients, handling their payroll and tax obligations.

Termination of employment that lacks valid reason or proper procedure, potentially entitling the employee to remedies such as reinstatement or compensation.

Mandatory profit-sharing ("profits") programs across Latin America where employers must distribute a percentage of annual profits to employees, with rates and rules varying by country — 10% in Mexico (PTU), 15% in Ecuador, and 8% in Peru.

Proportional vacation pay ("proportional holidays") owed to employees across Latin America when they leave a job before completing a full year, calculated based on the fraction of the year worked.

Brazil's meal voucher (vale-refeição) and food voucher (vale-alimentação) benefits that employers provide for employee meals at restaurants or grocery purchases, commonly offered through the PAT tax incentive program.

Brazil's mandatory transportation voucher ("transport voucher") that employers must provide to employees for their daily commute, with the employer covering costs exceeding 6% of the employee's base salary.

Compensation that fluctuates based on performance, results, or other factors rather than remaining fixed.

Software platform used to manage the procurement and management of contingent workers and staffing vendors.

An arrangement where an employee takes on international responsibilities without physically relocating, working remotely from their home country.

When an employer takes responsibility for an employee's work visa application and maintenance of legal status.

A worker whose employer withholds income taxes and pays employment taxes on their behalf, documented on IRS Form W-2.

Legal safeguards for workers who report wrongdoing, shielding them from dismissal, retaliation, and disadvantage.

Tax deducted from employee wages by employers and remitted directly to tax authorities on behalf of employees.

Legal permission for an individual to work in a specific country, typically documented through visas, permits, or residency status.

Legal obligations to inform, consult, or obtain agreement from an elected employee representative body before making certain workplace decisions.

Singapore legislation requiring employers to insure and compensate employees for work-related injuries and occupational diseases, without the employee needing to prove fault.

Official government authorization allowing a foreign national to legally work in a country where they are not a citizen.

The determination of whether a worker is an employee or an independent contractor, with significant legal and tax implications.

Insurance providing wage replacement and medical benefits to employees injured or ill due to their work, in exchange for relinquishing the right to sue employers.

Strategic analysis and planning of an organization's current and future workforce needs to ensure the right people are in the right roles.

EU legislation setting minimum standards for working hours, rest periods, night work and paid annual leave, implemented into the national law of each member state.

A formal inquiry into allegations of workplace misconduct, policy violations, or other employment-related issues.

An elected body of employees that represents worker interests in discussions with management, common in European countries.

Dismissal of an employee in violation of legal protections, contractual terms, or public policy.

Payroll activities required at calendar or fiscal year end, including reconciliation, reporting, and tax document preparation.

A UK contract with no guaranteed minimum hours, under which work is offered as it arises, most common in hospitality, retail, care and events.