HR Glossary — Terms, Clearly Defined
167+ human resource, payroll, labour law, and talent management terms — with plain-language definitions, why they matter, real examples, and the Indian statutory rules behind them.
Showing 167 of 167 terms
360-Degree Feedback
A comprehensive performance appraisal method where an employee receives confidential, multi-angle feedback from managers, peers, direct reports, and self-evaluation.
Read definitionAbsconding
When an employee abruptly stops reporting to work for consecutive days without prior approval, formal notice, or communication with their manager or HR.
Read definitionAbsent Without Leave (AWOL)
A status assigned to an employee who is absent from their designated workplace or shifts without sanctioned leave or prior managerial authorization.
Read definitionAbsenteeism Policy
A formal organizational policy defining acceptable attendance thresholds, unexcused absence consequences, leave notification guidelines, and disciplinary actions.
Read definitionAbsolute Ratings
A performance appraisal system where an employee's performance is graded against fixed, predetermined standards rather than compared against peers.
Read definitionAccrued Leave
The earned paid time off accumulated by an employee based on the number of days or months worked during a calendar or financial year.
Read definitionAdhoc Allowance
A one-time or temporary discretionary payment given to an employee for special assignments, temporary hardship, or unique duties.
Read definitionAllowance
A fixed monetary amount paid to an employee over and above their basic salary to meet specific job-related or living expenses.
Read definitionAnalytical Thinking
The capability to dissect complex business problems, evaluate quantitative data, and synthesize rational, evidence-based workplace solutions.
Read definitionAnnual Income
The total monetary compensation and taxable perquisites earned by an employee across a 12-month financial or calendar year.
Read definitionApplicant Tracking System (ATS)
Software software that streamlines the recruitment lifecycle from job requisition and resume parsing to interview scheduling and candidate offers.
Read definitionAppraisal
A periodic assessment of an employee's job performance, achievements, skill growth, and overall contribution to company goals.
Read definitionApprenticeship
A structured, regulated training program combining classroom learning with on-the-job vocational training under experienced mentors.
Read definitionAssessment Year (AY)
The 12-month period immediately following a Financial Year (FY) in which an individual's or company's income is formally assessed for tax.
Read definitionAttendance Regularization
The formal process allowing employees to correct missed biometric clock-ins, technical errors, or on-duty visits with manager approval.
Read definitionAttrition Rate
The pace at which employees leave an organization through voluntary resignations, retirements, or terminations over a specific timeframe.
Read definitionBackground Verification (BGV)
The verification process of confirming an applicant's credentials, including past employment, educational degrees, criminal records, and credit history.
Read definitionBasic Salary
The core, fixed base amount paid to an employee before adding any allowances, benefits, bonuses, or statutory deductions.
Read definitionBell Curve
A forced distribution appraisal model that categorizes employees into high, average, and low performers according to a normal distribution curve.
Read definitionBonus
Additional financial compensation distributed to an employee above their regular salary as a statutory entitlement or discretionary performance reward.
Read definitionBurnout
A state of emotional, physical, and mental exhaustion caused by excessive, prolonged workplace stress and unrealistic workloads.
Read definitionCampus Recruitment
The strategy of hiring graduating students directly from educational institutions, colleges, and universities for entry-level corporate positions.
Read definitionCareer Break
An extended period of time away from formal full-time employment, taken for childcare, higher education, travel, or caregiving.
Read definitionCompensation and Benefits (C&B)
The total reward discipline within HR responsible for designing fair salary structures, statutory perks, insurance, and long-term incentives.
Read definitionCompensatory Off (Comp-Off)
A paid day off granted to an employee as compensation for working on a designated weekly off, weekend, or public holiday.
Read definitionCompetency
A measurable cluster of related knowledge, skills, behaviors, and personal attributes essential for superior job performance.
Read definitionCompetency-Based Pay
A compensation model where an employee's remuneration is tied to their demonstrated skill mastery, certifications, and capabilities rather than job title or seniority.
Read definitionConsolidated Salary
A single, fixed, all-inclusive monthly payment provided to an employee without unbundling into separate allowance components.
Read definitionCost to Company (CTC)
The total annual expenditure an employer incurs on an employee, including direct pay, allowances, statutory contributions, and non-cash perks.
Read definitionDearness Allowance (DA)
A cost-of-living adjustment allowance paid to government and public sector employees to mitigate the inflationary erosion of real wages.
Read definitionDifference Between Job Specification and Job Description
A Job Description details role duties, responsibilities, and reporting lines, whereas a Job Specification outlines candidate qualifications, skills, and experience.
Read definitionDiversity, Equity & Inclusion (DEI)
A workplace framework championing fair representation, unbiased advancement, and a welcoming culture for all demographics.
Read definitionEarned Leave (EL)
Mandatory statutory paid leave days that an employee earns by rendering service, eligible for carryover or monetary encashment.
Read definitionEmployee Engagement
The emotional and intellectual commitment an employee has toward their organization's vision, culture, and business objectives.
Read definitionEmployee Provident Fund (EPF)
A statutory retirement savings scheme in India where employee and employer contribute equally (12% of Basic + DA) each month.
Read definitionEmployee Retention
The organizational strategies and policies aimed at encouraging top performers to remain with the company long-term.
Read definitionEmployee State Insurance (ESI)
A statutory social security and health insurance program in India providing medical benefits and cash relief to wage earners.
Read definitionEmployee Stock Ownership Plan (ESOP)
A benefit plan that grants employees the right to purchase company shares at a predetermined exercise price after a specified vesting period.
Read definitionEquity Theory
A workplace motivation theory postulating that employees gauge fairness by comparing their input-to-output ratio against peers.
Read definitionExit Interview
A structured, confidential discussion held with a departing employee to gather candid feedback on company culture, management, and work conditions.
Read definitionExpatriate
An employee sent by their company to live and work in a foreign country on a temporary or long-term international assignment.
Read definitionFactor Comparison
A quantitative job evaluation method that ranks roles by comparing critical factors such as mental requirements, skill, responsibility, and working conditions.
Read definitionFive-Factor Model
A psychological personality framework assessing five core traits: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism (OCEAN).
Read definitionFixed Pay
The guaranteed, non-variable base compensation guaranteed to an employee each month, regardless of individual or company performance.
Read definitionFlexible Benefits Plan (FBP)
A compensation feature allowing employees to customize their allowance basket (fuel, food, books, telephone) to optimize legitimate income tax liability.
Read definitionFormal Communication
The official, structured flow of information through recognized organizational channels, policies, memos, and hierarchical reporting chains.
Read definitionFull and Final Settlement (FnF)
The complete reconciliation and payout of all dues, unpaid salary, leave encashment, gratuity, and deductions upon an employee's resignation or exit.
Read definitionFull-Time Equivalent (FTE)
A standard unit of measurement representing the workload of one full-time employee, used to consolidate full-time and part-time staff for workforce planning.
Read definitionFunctional Job Analysis
A comprehensive method of examining a job role by analyzing what a worker actually does in relation to Data, People, and Things.
Read definitionGeneration Z (Gen Z)
The demographic cohort born between the late 1990s and early 2010s entering the modern workforce with digital-native skills and an emphasis on purpose.
Read definitionGig Economy
A labor market characterized by short-term, flexible, freelance, or on-demand contract work rather than permanent full-time employment.
Read definitionGrapevine Communication
The unofficial, informal workplace communication network through which rumors, casual gossip, and unverified news spread among employees.
Read definitionGratuity
A statutory lump-sum benefit an employer pays when an employee leaves after at least five years of continuous service (one year for fixed-term employees, and no minimum on death or disablement).
Read definitionGrievance
A formal complaint raised by an employee regarding perceived unfair treatment, policy violations, harassment, or workplace dissatisfaction.
Read definitionGross Salary
The total monthly salary payable to an employee including basic pay and allowances, prior to statutory and voluntary deductions.
Read definitionGroup Dynamics
The behavioral, psychological, and communication processes that occur within or between social or functional work teams.
Read definitionHouse Rent Allowance (HRA)
A salary allowance paid to help employees meet accommodation rental expenses, offering significant statutory income tax exemptions.
Read definitionHR Analytics
The data-driven practice of collecting and evaluating workforce data to optimize talent acquisition, retention, and employee productivity.
Read definitionHR Audit
A systematic, comprehensive review of an organization's HR policies, statutory compliance registers, documentation, and operational processes.
Read definitionHR Benchmarking
The process of comparing an organization's HR metrics and practices (salaries, turnover, cost-per-hire) against industry peers and market leaders.
Read definitionHR Initiatives
Strategic human resource programs introduced to solve organizational challenges, elevate employee wellness, or boost workforce productivity.
Read definitionHuman Capital Management (HCM)
An integrated, strategic approach to managing an organization's workforce as valuable business assets through the entire employee lifecycle.
Read definitionHuman Resource Information System (HRIS)
Software software dedicated to storing, maintaining, and processing master employee data, records, and basic HR workflows.
Read definitionHuman Resources (HR)
The organizational division responsible for sourcing, hiring, onboarding, training, compensating, and supporting a company's workforce.
Read definitionIn-Basket Technique
A simulation assessment tool where candidates are presented with a simulated managerial inbox (memos, emails, crises) to test prioritization skills.
Read definitionIncentives
Direct financial or non-monetary rewards provided to employees for meeting or exceeding targeted business milestones.
Read definitionInformal Communication
Casual, spontaneous peer-to-peer conversations across the workplace that bypass formal reporting lines and official hierarchy.
Read definitionInternship
A temporary professional training tenure offered by companies to students or recent graduates to acquire practical industry experience.
Read definitionInterview Panel
A calibrated group of two or more interviewers who collectively assess a candidate's technical skills, experience, and cultural fit.
Read definitionJob Description (JD)
A formal internal document specifying the title, core duties, responsibilities, reporting hierarchy, and required qualifications for a specific role.
Read definitionJohari Window
A psychological communication model used to enhance self-awareness and mutual understanding between individuals in a team.
Read definitionKey Performance Indicator (KPI)
A quantifiable metric used to track an employee's, team's, or department's success in achieving key operational and strategic objectives.
Read definitionKnowledge Transfer (KT)
The structured process of passing technical, operational, or institutional knowledge from one employee or team to another.
Read definitionLabour Charges
The total direct and indirect costs paid for manual or contract labor utilized in manufacturing, warehousing, or facilities management.
Read definitionLabour Welfare Fund (LWF)
A statutory state-managed fund offering social security, healthcare, and educational subsidies to workers, funded by employer-employee contributions.
Read definitionLayoff
The temporary suspension or permanent termination of employment initiated by an employer due to economic distress, shortage of work, or restructuring.
Read definitionLeave Encashment
The monetary compensation paid to an employee for their unutilized, accumulated earned or privilege leaves.
Read definitionLeave Travel Allowance (LTA)
A tax-exempt salary allowance provided to cover actual domestic travel expenses incurred by an employee and their family during sanctioned leave.
Read definitionLeave Without Pay (LWP)
An authorized period of absence granted to an employee after exhausting all paid leave balances, resulting in proportional salary deductions.
Read definitionLoss of Pay (LOP)
The direct payroll deduction made from an employee's monthly pay for days marked as unapproved absence or approved unpaid leave.
Read definitionManagement By Objectives (MBO)
A strategic performance management model where managers and employees jointly define, agree upon, and monitor specific operational goals.
Read definitionMaternity Leave
Statutory fully paid time off granted to pregnant female employees before and after childbirth to ensure maternal health and child bonding.
Read definitionMean Wage
The statistical average wage calculated by summing all salaries within a specific role, department, or company and dividing by the headcount.
Read definitionMerit Pay
An increase in base salary awarded to an employee specifically based on superior individual performance and appraised achievements.
Read definitionMinimum Wages
The legally mandated lowest hourly or monthly remuneration that an employer is required to pay workers across specific trades and skill levels.
Read definitionMoonlighting
The practice of holding a second job or external freelance assignment in secret while being employed full-time with a primary employer.
Read definitionMuster Roll
A statutory official register documenting daily employee attendance, working hours, shifts, leaves, and wage calculations.
Read definitionNational Pension System (NPS)
A voluntary, government-backed contributory retirement scheme in India offering market-linked returns and unique corporate tax deductions.
Read definitionNepotism
The unfair workplace practice of granting preferential hiring, promotions, or perks to family members and relatives regardless of merit.
Read definitionNet Pay (Take-Home)
The actual residual monetary amount deposited into an employee's bank account after all statutory and voluntary deductions are subtracted.
Read definitionNon-Disclosure Agreement (NDA)
A legally binding contract that prohibits an employee from sharing, leaking, or misusing proprietary company data, trade secrets, and customer info.
Read definitionNotice Period
The required time interval between the formal submission of a resignation (or termination notice) and the employee's final working day.
Read definitionObjectives and Key Results (OKR)
A goal-setting framework that connects ambitious organizational qualitative Objectives with 3-5 measurable, trackable Key Results.
Read definitionOffboarding
The comprehensive process of managing an employee's formal separation, including asset recovery, IT de-provisioning, exit interviews, and FnF.
Read definitionOn Roll vs Off Roll Payroll
On-roll employees are permanent staff directly hired by the company, while off-roll employees are third-party contractors hired via staffing agencies.
Read definitionOnboarding
The structured process of integrating a new hire into the organization, handling documentation, IT provisioning, and culture orientation.
Read definitionOrganizational Development (OD)
A planned, organization-wide effort to increase organizational effectiveness and health through behavioral science interventions.
Read definitionOrganizational Policies
The set of formalized rules, procedures, and ethical standards that guide employee conduct, management decisions, and operational governance.
Read definitionOvertime (OT)
The additional remuneration paid to employees for working beyond the statutory limits on normal working hours (generally 8 hours a day and 48 hours a week).
Read definitionPaid Holidays
Mandatory public and national holidays where employees receive full regular wages without being required to report to work.
Read definitionPaid Time Off (PTO)
A consolidated leave policy combining earned, casual, and sick leaves into a single flexible bank of paid days off for employees.
Read definitionPaternity Leave
Paid time off granted to a male employee following the birth or legal adoption of a child to support his partner and bond with the newborn.
Read definitionPay Band
A defined salary range between minimum and maximum compensation established for specific job tiers within an organization.
Read definitionPay Grade
A hierarchical classification level that groups different job titles of similar complexity, scope, and responsibility under identical compensation scales.
Read definitionPayroll Compliance
The rigorous adherence to all federal, state, and local labor statutes governing wage payouts, statutory deductions, tax filings, and reporting registers.
Read definitionPayroll Service
A specialized software solution or outsourced provider that manages salary calculations, deductions, direct deposits, and compliance for an enterprise.
Read definitionPayroll Settlement
The final financial reconciliation and payment of all outstanding dues, salary arrears, and deductions owed to an employee.
Read definitionPerformance Development Plan (PDP)
A collaborative roadmap designed between manager and employee to identify career milestones, skill gaps, and professional growth opportunities.
Read definitionPerformance Improvement Plan (PIP)
A structured, time-bound intervention plan (typically 30-90 days) designed to help an underperforming employee meet minimum acceptable job standards.
Read definitionPerquisites (Perks)
Non-cash benefits, privileges, or amenities provided by an employer to an employee over and above their regular monetary salary.
Read definitionPrevention of Sexual Harassment (POSH)
The mandatory Indian legal framework enacted to prevent, prohibit, and redress sexual harassment of women at the workplace.
Read definitionProbationary Period
The initial trial period (typically 3 to 6 months) during which an employer evaluates a new hire's competence and cultural fit before confirming permanent employment.
Read definitionProfessional Tax (PT)
A state-level statutory tax levied on salaried employees and professionals, deducted monthly by employers and remitted to state governments.
Read definitionQuality of Work Life (QWL)
The overall quality of the human experience in the workplace, encompassing safety, fair pay, mental well-being, and work-life balance.
Read definitionQuiet Quitting
The workplace phenomenon where employees do not actually resign, but strictly limit their efforts to core job requirements, declining unpaid overtime.
Read definitionRecruitment
The end-to-end talent acquisition process of identifying, attracting, screening, shortlisting, and hiring qualified candidates for job openings.
Read definitionReimbursement
The repayment made by an employer to an employee for legitimate out-of-pocket business, travel, or medical expenses incurred while on duty.
Read definitionRelieving Letter
An official document issued by an employer upon an employee's exit, formally certifying that they have fulfilled all duties and are discharged from service.
Read definitionRemuneration
The total reward and compensation given to an individual in exchange for their work, services, or professional labor.
Read definitionRequisition
A formal internal request submitted by a department manager to HR and Finance seeking authorization to hire for a new or replacement position.
Read definitionResignation
The voluntary act of an employee formally notifying their employer of their intention to terminate their employment contract.
Read definitionRestricted Holidays (RH)
Optional holidays chosen by an employee from a pre-approved list of cultural or religious observances, up to a set annual quota.
Read definitionRetrenchment
The formal termination of a worker's employment by an employer for reasons other than disciplinary punishment or retirement.
Read definitionRewards and Recognition (R&R)
The formal and informal programs an organization uses to acknowledge, celebrate, and reward exceptional employee contributions.
Read definitionSabbatical Leave
An extended, approved period of leave granted to an employee to pursue higher education, research, personal projects, or wellness.
Read definitionSalaried Employee
An employee compensated with a fixed, predetermined annual or monthly salary rather than hourly wages, irrespective of minor hour variations.
Read definitionSalary Breakup
The detailed, line-by-line itemization of how an employee's total CTC is divided into basic pay, allowances, statutory contributions, and take-home.
Read definitionSensitivity Training
A form of behavioral training aimed at increasing self-awareness, empathy, and interpersonal sensitivity toward diverse backgrounds in the workplace.
Read definitionSeverance Pay
The financial compensation provided to an employee upon involuntary termination, layoff, or corporate restructuring.
Read definitionShift Allowance
An extra monetary allowance paid to employees for working non-standard, rotational, or night shifts.
Read definitionShrinkage
The percentage of paid time during which customer service or operations agents are unavailable to perform productive customer-facing work.
Read definitionSick Leave (SL)
Paid leave granted to employees to recover from illness, injury, surgery, or medical appointments without loss of earnings.
Read definitionStaffing
The ongoing managerial function of hiring, positioning, and retaining the right human talent required to achieve business goals.
Read definitionStatutory Compliance
The formal adherence to all central, state, and local labor laws that protect worker rights, health, safety, and financial benefits.
Read definitionStipend
A fixed regular allowance paid to interns, apprentices, or trainees to cover their living and travel expenses during their training tenure.
Read definitionSubordinate
An employee who reports directly to a person of higher rank or authority within the organizational hierarchy.
Read definitionSuspension
The temporary debarment of an employee from active duty and office access pending the formal inquiry into severe misconduct or fraud.
Read definitionTalent Acquisition
The strategic, proactive approach to identifying, attracting, and hiring skilled talent to meet long-term organizational business objectives.
Read definitionTax Deducted at Source (TDS)
The statutory income tax deducted by an employer from an employee's salary at payout time and remitted directly to the central government.
Read definitionTotal Quality Management (TQM)
A management philosophy focused on continuous, organization-wide improvement of processes, products, and services through employee participation.
Read definitionTransformational Leadership
A leadership style that inspires, motivates, and empowers employees to innovate and create meaningful change for the future of the company.
Read definitionTurnover Rate
The percentage of employees who leave an organization over a given period, requiring replacement through new hiring.
Read definitionUnemployment
The economic state of individuals who are actively looking for work and available to work, but are currently without formal employment.
Read definitionUnpaid Leave
An approved period of absence during which an employee does not receive regular salary or wages, while retaining their employment status.
Read definitionVariable Pay
The portion of compensation tied directly to the achievement of individual, team, or company-wide performance milestones.
Read definitionVestibule Training
A simulation training method where new employees learn to operate machinery or software in a simulated environment replicating the actual workplace.
Read definitionVoluntary Retirement Scheme (VRS)
A formal scheme offering attractive financial incentives to employees who voluntarily opt for early retirement before the official retirement age.
Read definitionVoluntary Time Off (VTO)
Optional unpaid time off offered by an employer to staff during operational lulls when workload is low and overstaffing exists.
Read definitionWeekly Off
A statutory mandatory 24-hour continuous rest period granted to workers once every seven days.
Read definitionWhistleblower Policy
A formal corporate policy providing a safe, confidential mechanism for employees to report fraud, corruption, or legal violations without fear of retaliation.
Read definitionWork Ethics
A set of moral principles, accountability standards, and professional integrity that guide employee conduct in the workplace.
Read definitionWork-From-Home (WFH)
A flexible working arrangement allowing employees to perform their professional duties from their home residence using remote collaboration tools.
Read definitionWorkplace Retaliation
Adverse actions taken by an employer or supervisor against an employee because they exercised their legal rights, filed a grievance, or blew the whistle.
Read definitionWrongful Termination
The termination of an employee in violation of statutory labor laws, public policy, principles of natural justice, or the explicit terms of the employment contract.
Read definitionX-Ray Search
An advanced Boolean search technique used by talent recruiters to uncover candidate profiles on LinkedIn and public databases through external search engines.
Read definitionYield Ratio
The percentage of applicants who successfully progress from one stage of the recruitment hiring funnel to the subsequent stage.
Read definitionZero-Tolerance Policy
A strict organizational policy that enforces immediate, uncompromising disciplinary penalties (including termination) for designated grave offenses.
Read definitionEmployee Net Promoter Score (eNPS)
A single-question survey metric measuring how likely employees are to recommend their workplace to others, scored from -100 to +100.
Read definitionSuccession Planning
The process of identifying and developing internal employees who can fill key leadership or critical roles when they become vacant.
Read definitionTime and Motion Study
A workplace analysis technique that measures how long a task takes and the physical steps involved, used to set fair productivity standards.
Read definitionGarden Leave
A period during an employee's notice period where they are asked to stay away from work while continuing to receive full pay.
Read definitionRed-Circling
A compensation practice where an employee's salary is frozen above the new pay band maximum after a role change, rather than being cut.
Read definitionSkip-Level Meeting
A meeting between an employee and their manager's manager, bypassing the direct reporting line to surface unfiltered feedback.
Read definitionTalent Pipeline
A pool of pre-qualified, engaged candidates a company maintains for current and anticipated future hiring needs.
Read definitionGolden Handshake
A substantial severance package offered to a senior employee, typically as an incentive for early or voluntary departure.
Read definitionShadow Payroll
A parallel payroll record maintained in an employee's home country while they are paid through the host country's payroll during an international assignment.
Read definitionWage Theft
The unlawful withholding of wages legally owed to an employee, including unpaid overtime, illegal deductions, or non-payment of final dues.
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