Glossary
A list of words and phrases commonly used in the sphere of global expansion.
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1099 Employee - [United States]
A 1099 Employee, often referred to as an independent contractor, is a worker who provides services to a business under terms specified in a contract or within a freelance arrangement, not as an employee. Read more
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13th Month Pay
13th Month Pay is an additional payment given to employees, typically at the end of the year, which is equivalent to one full month's salary. This is often mandated by law in some countries and serves as a bonus to help employees with year-end expenses. For businesses operating in regions where the 13th Month Pay is mandated by law, understanding and adhering to local regulations is paramount. This payment is often calculated on a pro-rata basis, taking into account the tenure of an employee within the calendar year. Employers must navigate the intricacies of these regulations to ensure full compliance, avoiding potential legal repercussions and fostering a positive workplace environment. Read more
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Agent of Record
An Agent of Record (AOR) is a legally authorized entity or individual who represents another person or company in managing their insurance or employment affairs, particularly in international contexts. Read more
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Auto-Enrolment Pension Scheme - [United Kingdom]
It's a UK government initiative that automatically enrolls eligible workers into a workplace pension scheme. Read more
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Blue Card - [European Union]
The Blue Card is an EU-wide work permit allowing highly skilled non-EU nationals to live and work in any EU member state, excluding Denmark, Ireland, and Norway. Read more
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Compliance Management
Compliance Management refers to the process of ensuring that a company and its employees adhere to the regulatory standards and internal policies established within an industry or for a specific business practice. Read more
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Compliance Risk Management
Compliance Risk Management is the process of identifying, assessing, and mitigating risks associated with failing to comply with laws, regulations, policies, or ethical standards in business operations. Read more
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Cross-Border Payments
Cross-Border Payments refer to transactions where the payer and the recipient are based in different countries. These payments typically involve currency exchange and are subject to various international banking regulations. Read more
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Currency Exchange
Currency Exchange is the process of converting one currency into another. It plays a crucial role in international trade, travel, and finance. Read more
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Cutoff Date
A Cutoff Date is a predetermined deadline in business processes, such as payroll or accounting, after which any new data or transactions will be processed in the next cycle. Read more
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Data Processing Agreement
A Data Processing Agreement (DPA) is a legal contract between data controllers and data processors, outlining how personal data will be handled, processed, and protected in compliance with privacy laws like GDPR. Read more
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Distributed Company
A Distributed Company is a business model where employees work remotely from various locations, often across different time zones and countries, rather than from a centralised office. Read more
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E-9 Visa (Non-Professional Employment) - [South Korea]
The E-9 Visa in South Korea is designated for foreign nationals employed in non-professional jobs, often in manufacturing, construction, and similar sectors. Read more
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Employee Benefits
Employee Benefits are non-wage compensations provided to employees in addition to their normal salaries or wages. These may include health insurance, pension plans, paid vacation, and other perks. Read more
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Employee Onboarding
Employee Onboarding is the process of integrating new hires into an organization, involving orientation, training, and adjustment to the company culture and work environment. Read more
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Employee Retention
Employee Retention refers to an organization’s ability to keep its employees and reduce turnover by creating a positive work environment, offering competitive compensation, and fostering employee engagement. Read more
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Employee Tenure
Employee Tenure refers to the length of time an employee has worked for a particular employer. It's an important metric for understanding workforce stability and employee loyalty. Read more
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Employer of Record (EOR)
An Employer of Record (EOR) is an organization that legally employs staff on behalf of another company, particularly for managing employees in different geographical locations. Read more
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Employment Agreement
An Employment Agreement is a formal contract between an employer and an employee that outlines the terms and conditions of employment, including roles, responsibilities, compensation, and termination conditions. Read more
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Employment Laws
Employment Laws are statutes and regulations that govern the relationship between employers and employees, covering aspects such as wages, working hours, discrimination, health and safety, and employee rights. Read more
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Employment Pass - [Singapore]
An Employment Pass in Singapore is a work visa provided to foreign professionals, managers, and executives with job offers in Singapore. Read more
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End of Service Gratuity - [Dubai, UAE]
End of Service Gratuity in Dubai is a monetary benefit given to employees upon leaving a company after completing at least one year of service. Read more
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ESIC (Employees' State Insurance Corporation) - [India]
ESIC is a statutory body in India that provides social security and health insurance to workers earning less than a specified limit. Read more
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Expatriate Management
Expatriate Management involves the processes and policies companies use to manage employees who are working in a country other than their country of origin, known as expatriates or expats. Read more
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Fair Consideration Framework (FCF) - [Singapore]
The Fair Consideration Framework is a set of guidelines in Singapore that requires employers to consider Singaporeans fairly for job opportunities before hiring foreign professionals. Read more
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Foreign Subsidiary
A Foreign Subsidiary is a company that is partially or wholly owned by another company (parent company) but operates in a different country. The subsidiary operates under the laws of the country where it is located. Read more
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Form 1099-MISC - [United States]
Form 1099-MISC is a tax form in the United States used to report payments made to independent contractors, freelancers, and other self-employed individuals during the tax year. Read more
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Form 1099-NEC - [United States]
Form 1099-NEC is a U.S. tax form used to report non-employee compensation, specifically payments to independent contractors, freelancers, and other self-employed individuals. Read more
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Form W-4 - [United States]
Form W-4 is a U.S. tax form used by employees to indicate their tax situation to employers. The information provided on this form determines the amount of federal income tax to be withheld from their paychecks. Read more
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Form W-9 - [United States]
Form W-9 is a U.S. tax form used by businesses to collect information from individuals or entities (like independent contractors) that they pay for services. It is used for tax reporting purposes. Read more
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Four Major Insurances - [South Korea]
In South Korea, the Four Major Insurances refer to National Pension, Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance. Read more
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Free Zone Employment - [Dubai, UAE]
Free zones in Dubai are designed to attract foreign investment and offer unique employment opportunities, often with different rules compared to mainland Dubai. Read more
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FTE (Full-Time Equivalent)
Full-Time Equivalent (FTE) is a unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts. It is often used to measure a worker's involvement in a project. Read more
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Full-Time Hours
Full-Time Hours refer to the standard number of hours considered full-time work in a given context, typically in a week. This varies by country and industry but is often around 35 to 40 hours per week. Read more
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GDPR (General Data Protection Regulation) - [European Union]
GDPR is a regulation in EU law focused on data protection and privacy for individuals within the European Union and the European Economic Area. Read more
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Global Expansion
Global Expansion refers to the process of a business extending its operations beyond its original country to international markets. This can involve setting up new offices, hiring local staff, and adapting products or services to new cultural and regulatory environments. Read more
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Global HR (Human Resources)
Global Human Resources (Global HR) involves managing a diverse workforce across different countries, addressing the complexities of various labor laws, cultural differences, and international talent management. Read more
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Global Mobility Services
Global Mobility Services refer to the range of services provided to assist employees who relocate internationally for work. These services include visa and immigration support, housing assistance, cultural training, and family support. Read more
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Global Payroll
Global Payroll involves managing the payroll for employees in multiple countries, each with its unique tax laws and employment regulations. It requires navigating currency exchange, tax withholdings, and compliance with local labor laws: https://topsourceworldwide.com/blog/what-is-global-payroll/ Read more
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Global Talent Acquisition
Global Talent Acquisition is the process of identifying, attracting, and hiring employees from a worldwide talent pool. It involves understanding diverse cultural backgrounds, employment practices, and legal requirements across different countries. Read more
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Global Workforce Strategy
A Global Workforce Strategy involves planning and managing a diverse and geographically dispersed workforce in a way that aligns with the company's global business goals. Read more
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Gratuity - [India]
Gratuity is a sum of money paid by an employer to an employee for services rendered, typically payable after continuous service of five years or more. Read more
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Gross Income
Gross Income is the total income earned by an individual or a business before any deductions or taxes are applied. For employees, it includes wages, salaries, bonuses, and other forms of compensation. Read more
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Gross to Net
Gross to Net refers to the process of calculating the net amount of something (like salary or profit) after all deductions have been made from the gross amount. Read more
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HR Outsourcing
HR Outsourcing involves hiring external organizations to manage human resources tasks and functions, such as payroll processing, employee benefits administration, recruitment, and compliance management. Read more
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In-Country Partner
An In-Country Partner refers to a local entity or service provider in a foreign country that assists businesses in navigating the complexities of local regulations, culture, and business practices. Read more
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International Labor Laws
International Labor Laws encompass the regulations and standards governing employment practices across different countries. These laws cover a wide range of issues, including wages, working hours, safety standards, and anti-discrimination policies. Read more
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International PEO (Professional Employer Organization)
An International Professional Employer Organization (PEO) is a global service provider that helps companies employ staff in countries where they don't have a legal entity. They handle HR tasks, payroll, benefits, and compliance with local employment laws. Read more
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International Tax Compliance
International Tax Compliance refers to the adherence to tax laws and regulations across different countries. It involves understanding and meeting obligations related to corporate taxes, employee income taxes, and other fiscal responsibilities in multiple jurisdictions. Read more
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Labor Law
Labor Law refers to the body of laws, administrative rulings, and precedents governing the legal rights of, and restrictions on, working people and their organizations. It mediates the relationship between workers, employers, trade unions, and the government. Read more
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Leave Management
Leave Management is the process of managing employee time-off requests in a fair, accurate, and legal manner. It includes handling vacation, sick leave, parental leave, and other forms of absence from work. Read more
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Localization
Localization involves adapting a product, content, or service to meet the language, cultural, legal, and other specific requirements of a particular market or region. It goes beyond mere translation, encompassing a comprehensive adaptation process. Read more
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H-2 Visa (Working Visit) - [South Korea]
The H-2 Visa in South Korea is for ethnic Koreans living in China and the former Soviet Union, allowing them to visit and work in South Korea. Read more
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Minimum Wage - [South Korea]
Minimum Wage in South Korea is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Read more
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Multi-Country Payroll
Multi-Country Payroll refers to the process of managing payroll for employees working in multiple countries. This involves different tax regimes, currency conversions, compliance with local employment laws, and varied payroll cycles. Read more
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NI Number (National Insurance Number) - [United Kingdom]
A National Insurance Number is a unique identifier used in the UK, essential for employment, social security, and accessing public services. Read more
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Notice Period
A Notice Period is the length of time an employee is required to continue working after they have submitted their resignation, or the time an employer must give an employee before termination. It allows for a smoother transition and handover of responsibilities. Read more
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Paternity Leave
Paternity Leave is the time off from work granted to a father after or shortly before the birth or adoption of a child. This leave allows fathers to spend time with their new child and support their partner. Read more
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P45/P60 Forms - [United Kingdom]
P45 and P60 are tax forms used in the UK. The P45 is given when you leave a job, and the P60 summarizes your annual tax and National Insurance contributions. Read more
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Pay Stub - [United States]
A Pay Stub is a document provided to employees with each paycheck, detailing their earnings for that pay period, including wages, overtime, bonuses, and deductions such as taxes and social security contributions. Read more
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PAYE (Pay As You Earn) - [United Kingdom]
PAYE is a system where employers withhold Income Tax and National Insurance contributions directly from wages in the UK. Read more
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Payroll Audit
A Payroll Audit is a thorough review of a company's payroll processes to ensure accuracy and compliance with taxation and employment laws. It involves examining records to verify that payments and deductions are correct and properly documented. Read more
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PEO (Professional Employer Organization)
A Professional Employer Organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers' compensation, recruiting, risk/safety management, and training and development. Read more
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Performance Reviews
Performance Reviews, also known as performance appraisals, are regular assessments of an employee's job performance. They are used to provide feedback, set goals, and identify areas for development and training. Read more
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Post-Tax Deduction
A Post-Tax Deduction is a deduction from an employee's paycheck that occurs after income tax has been calculated and withheld. These deductions do not reduce the employee's taxable income. Read more
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Professional Tax - [India]
Professional Tax is a state-level tax in India, levied on professions, trades, and employment, with the rate varying by state and income levels. Read more
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Provident Fund (PF) - [India]
The Provident Fund is a government-mandated retirement savings scheme in India, where employees and employers contribute a portion of the employee's salary. Read more
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Redundancy Rights - [European Union]
Redundancy rights in the EU refer to the rights and protections employees have if they are dismissed from their job due to no longer being needed, rather than performance or conduct. Read more
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Remote Work Policy
Remote Work Policy Read more
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Repatriation
Repatriation refers to the process of returning an employee back to their home country after completing an international assignment. It involves logistical, professional, and cultural readjustment support. Read more
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Salaried Employee
A Salaried Employee is someone who earns a fixed amount of money from their employer, regardless of the number of hours worked. This salary is typically stated as an annual figure and is divided into regular payments, often monthly or bi-weekly. Read more
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Central Provident Fund (CPF) - [Singapore]
The Central Provident Fund is a comprehensive social security savings plan in Singapore, providing working Singaporeans and permanent residents with funds for retirement, healthcare, and housing. Read more
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S Pass - [Singapore]
The S Pass is a type of work visa in Singapore designed for mid-skilled foreign employees, such as technicians. Read more
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Severance Pay - [South Korea]
Severance Pay in South Korea is a payment made to employees who have been terminated or have left the company, typically after a minimum period of service. Read more
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Social Security Wages - [United States]
Social Security Wages are the earnings of an employee that are subject to Social Security tax. These wages are used to calculate Social Security benefits and are subject to an annual limit. Read more
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Statutory Sick Pay (SSP) - [United Kingdom]
SSP is a financial benefit for eligible employees in the UK who are unable to work due to illness. Read more
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SWIFT (Society for Worldwide Interbank Financial Telecommunication)
SWIFT, the Society for Worldwide Interbank Financial Telecommunication, is a global member-owned cooperative that provides safe and secure financial transactions for its members. It's primarily used for international wire transfers and messages between banks. Read more
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Talent Acquisition
Talent Acquisition is the process of identifying, attracting, and hiring skilled individuals to meet organizational needs. It involves sourcing candidates, recruitment, interviewing, hiring, and onboarding. Read more
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Tax Compliance
Tax Compliance refers to adhering to tax laws and regulations by correctly reporting income, expenses, and other financial details to the relevant tax authorities. It involves timely filing of tax returns and paying the correct amount of taxes. Read more
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Tax Identification Number (TIN)
A Tax Identification Number (TIN) is a unique identifier assigned by a government to individuals and entities for tax purposes. In many countries, this number is crucial for managing tax liabilities and ensuring compliance with tax laws. TINs serve as an essential tool for governments to track financial transactions, assess taxes, and prevent tax evasion. Read more
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TDS (Tax Deducted at Source) - [India]
TDS is a method of collecting Income Tax in India, where tax is deducted from the income at the source of generation. Read more
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UAE Labour Law - [Dubai, UAE]
UAE Labour Law refers to the set of laws and regulations governing employment relationships in the United Arab Emirates, ensuring fair treatment for workers and outlining employer obligations. Read more
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VAT (Value Added Tax) - [European Union]
VAT is a consumption tax applied to most goods and services in the European Union, added at each stage of the supply chain. Read more
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Visa Sponsorship - [Dubai, UAE]
Visa Sponsorship in Dubai involves a UAE-based company taking responsibility for an employee's residence visa and work permit. Read more
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Singapore Work Permit - [Singapore]
In Singapore, a Work Permit is a work visa for semi-skilled or unskilled foreign workers in certain sectors like construction, manufacturing, marine, and domestic work. Read more
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W-2 Employee - [United States]
A W-2 Employee is someone who receives a W-2 form from their employer, documenting their annual wages and taxes withheld. They are considered traditional employees and are subject to payroll taxes and eligible for employee benefits. Read more
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Wages Protection System (WPS) - [Dubai, UAE]
WPS is an electronic salary transfer system in the UAE that allows institutions to pay workers’ wages via banks, bureaus, and financial institutions approved by the UAE Central Bank. Read more
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Work Permit
A Work Permit is an official document granting a non-citizen the right to work in a specific country. It is usually required for individuals who are not citizens or permanent residents of that country. These laws, while varying across nations, share common objectives of protecting local labor markets and ensuring employment of foreign workers only in scenarios where local talent is unavailable or lacks specific skills. Read more
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Work Visa
A Work Visa is a type of visa that allows its holder to enter a foreign country and engage in employment. The requirements, duration, and conditions vary depending on the country and the type of work. Read more
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Workforce Analytics
Workforce Analytics involves using data analysis to study and improve workforce management. It encompasses various metrics like recruitment, performance, turnover, and employee engagement. Read more
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Working Time Directive - [European Union]
This is an EU directive that sets out regulations for working hours, rest periods, and annual leave for workers across the EU. Read more
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