A
-
Absenteeism: The habitual or intentional failure of an employee to report to work when scheduled. Persistent unauthorized absenteeism can be grounds for disciplinary action, subject to company policy and applicable labor laws (e.g., Industrial Disputes Act in India for "workmen").
-
Accrued Leave: Unused leave days (e.g., sick leave, casual leave, earned leave) that an employee has accumulated over their period of employment, often eligible for carry-over or encashment upon termination, as per company policy and statutory requirements (e.g., Shops and Establishments Acts in India).
-
Allowance: Fixed amounts paid to employees in addition to their basic salary, often to cover specific expenses (e.g., House Rent Allowance (HRA), Leave Travel Allowance (LTA), Conveyance Allowance). Allowances can be fully, partly, or non-taxable depending on their nature and the prevailing tax laws in India.
-
Apprenticeship: A system of training a new generation of practitioners of a trade or profession with on-the-job training and accompanying study. Apprenticeship programs are often governed by specific regulations (e.g., Apprentices Act, 1961 in India).
-
Arbitration: A method of dispute resolution where a neutral third party (arbitrator) hears both sides of a dispute and makes a binding decision. This is an alternative to litigation and can be used to resolve industrial disputes.
B
-
Basic Salary/Pay: The fundamental component of an employee's compensation package, forming the base upon which other salary components (like HRA, Provident Fund, Gratuity) are often calculated. It is a fixed, guaranteed amount.
-
Bonus: Additional compensation paid to employees, typically performance-based or as a statutory obligation (e.g., Payment of Bonus Act, 1965 in India, requiring payment of minimum bonus to eligible employees). Bonuses can be variable or fixed.
C
-
Casual Leave: Short-term leave granted to employees for unforeseen circumstances or personal reasons. Typically, casual leave is not carried forward to the next year.
-
Code on Wages, 2019 (India): One of India's four new labor codes, consolidating and replacing older laws like the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. It aims to regulate wage payments, establish minimum wages, and ensure pay equity across various sectors.
-
Collective Bargaining: A process of negotiation between employers and a group of employees (often represented by a trade union) to regulate working conditions, wages, benefits, and other aspects of workers' employment.
-
Compensation and Benefits (C&B): The total monetary and non-monetary rewards provided to employees for their service, including salary, wages, bonuses, incentives, health insurance, retirement plans, and paid time off.
-
Confidentiality Agreement (NDA): A legally binding contract that outlines confidential material, knowledge, or information that the parties agree not to share with unauthorized third parties. Essential for protecting proprietary business information.
-
Contract Labor: Workers engaged through a contractor or agency for specific tasks or a defined period, rather than being directly employed by the principal employer. Compliance with Contract Labour (Regulation and Abolition) Act, 1970, is critical in India.
-
Continuous Service: A period of uninterrupted employment with an employer, often a prerequisite for eligibility for certain benefits like gratuity, leave, or protection against unfair termination (e.g., typically one year or more for certain benefits in India).
-
Corporate Social Responsibility (CSR): A self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. This can include fair labor practices and adherence to ethical standards.
D
-
Data Protection (DPDP Act, 2023 - India): Refers to the legal framework governing the collection, processing, storage, and transfer of personal data. India's Digital Personal Data Protection Act, 2023, is a significant new law requiring organizations to obtain consent for data processing and protect personal data.
-
Dearness Allowance (DA): A cost-of-living adjustment paid to employees, particularly in India, to offset the impact of inflation. It is usually a percentage of the basic salary.
-
Discrimination (Workplace): Unfair treatment or disadvantage based on protected characteristics such as race, religion, gender, age, disability, sexual orientation, caste, or place of birth. Prohibited by laws like the Equal Remuneration Act, 1976, and provisions within the Indian Constitution.
-
Disciplinary Action: Measures taken by an employer against an employee for misconduct, poor performance, or violation of company policies. Actions can range from warnings to suspension or termination, following due process.
-
Dismissal (Termination for Cause): The termination of employment by an employer due to specific reasons, such as misconduct, poor performance, or violation of company policy. In India, a fair inquiry and opportunity for defense are generally required, especially for "workmen."
-
Due Diligence (Labor Law): The process of conducting thorough research and investigation into a company's labor practices, policies, and compliance records, particularly during mergers, acquisitions, or significant operational changes, to identify potential risks.
E
-
Employee Engagement: The level of an employee's psychological investment in their organization. High engagement is often linked to better productivity and retention.
-
Employee Handbook: A document provided by an employer to employees that outlines the company's policies, procedures, and expectations, as well as employee rights and benefits.
-
Employee Provident Fund (EPF): A mandatory savings scheme for employees in India, managed by the Employees' Provident Fund Organisation (EPFO). Both employers and employees contribute a percentage of the employee's salary to this fund, which provides retirement benefits.
-
Employees' State Insurance (ESI): A social security and health insurance scheme in India, providing medical and other benefits to employees earning below a certain wage threshold in covered establishments. Both employees and employers contribute.
-
Employer of Record (EOR): A third-party organization that legally employs workers on behalf of another company, handling all compliance, payroll, taxes, and HR functions, while the client company manages the day-to-day work. Useful for global expansion without establishing a legal entity.
-
Employment Contract: A legally binding agreement between an employer and an employee, outlining the terms and conditions of employment, including job responsibilities, compensation, working hours, leave policies, and termination clauses. In India, written contracts are highly recommended.
-
Equal Remuneration Act, 1976 (India): A law that mandates equal pay for equal work or work of similar nature for men and women and prohibits discrimination on grounds of gender in recruitment and other employment matters. Consolidated under the Code on Wages, 2019.
-
Exit Interview: A meeting conducted between an employer and an employee who is leaving the company, typically to gather feedback on their employment experience, reasons for departure, and suggestions for improvement.
F
-
Factories Act, 1948 (India): A significant legislation governing health, safety, welfare, working hours, and other conditions of workers in factories. Many of its provisions are now integrated into the Occupational Safety, Health and Working Conditions Code, 2020.
-
Fixed-Term Employment: An employment arrangement for a specific, predetermined period, after which the contract automatically terminates unless renewed. Indian labor laws have provisions for fixed-term employment, with certain benefits similar to permanent employees.
-
Flexible Working Arrangements: Non-traditional work schedules or locations (e.g., remote work, flextime, compressed workweeks) designed to provide employees with greater autonomy and work-life balance. Policies should align with local labor laws.
-
Fringe Benefits: Non-wage compensations provided to employees in addition to their salaries, such as health insurance, paid time off, retirement plans, and other perks.
G
-
Gig Worker: An independent contractor, online platform worker, or temporary worker engaged for short-term, flexible tasks. The Code on Social Security, 2020, aims to bring gig and platform workers into the social security regime in India.
-
Grievance Procedure: A formal process established within an organization for employees to raise and resolve workplace complaints or concerns. Effective grievance mechanisms are crucial for maintaining positive employee relations and avoiding disputes.
-
Gross Pay: The total amount of an employee's earnings before any deductions for taxes, benefits, or other contributions.
-
Gratuity (Payment of Gratuity Act, 1972 - India): A statutory payment made by an employer to an employee as a token of appreciation for long and continuous service (typically 5 years or more). It is calculated based on the last drawn salary and years of service.
H
-
Harassment (Workplace): Unwelcome conduct based on a protected characteristic that creates a hostile work environment or interferes with an individual's work performance. Includes sexual harassment, which is specifically addressed by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in India.
-
Health and Safety (Occupational): Refers to the legal requirements and best practices aimed at protecting the well-being of employees in the workplace. The Occupational Safety, Health and Working Conditions Code, 2020, consolidates laws related to these aspects in India.
-
Human Resources (HR) Compliance: The process of ensuring that an organization's HR practices adhere to all applicable local, national, and international labor laws, regulations, and industry standards.
I
-
Industrial Disputes Act, 1947 (India): A key legislation for the investigation and settlement of industrial disputes, and for certain other purposes. It defines "workman," "industrial dispute," and sets procedures for layoffs, retrenchment, and strikes. Consolidated under the Industrial Relations Code, 2020.
-
Industrial Relations Code, 2020 (India): One of India's new labor codes, consolidating laws related to trade unions, industrial employment (standing orders), and industrial disputes. It aims to streamline regulations concerning workforce changes and dispute resolution.
-
Internal Complaints Committee (ICC): Mandated by the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in India, for organizations with 10 or more employees, to inquire into complaints of sexual harassment.
L
-
Layoff: Temporary or permanent separation of an employee from employment due to economic reasons, such as lack of work or financial difficulties, rather than employee misconduct. Specific procedures and severance pay may be required (e.g., Industrial Disputes Act in India).
-
Leave Encashment: The payment an employee receives for their unused accumulated leave days, typically upon resignation, retirement, or as per company policy at specific intervals.
-
Litigation: The process of taking legal action, often involving a lawsuit filed in a court of law to resolve a dispute.
-
Lockout: A temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him, in consequence of an industrial dispute.
M
-
Maternity Benefit Act, 1961 (India): Provides for paid maternity leave, nursing breaks, and protection of employment during pregnancy for women. Now largely subsumed under the Code on Social Security, 2020.
-
Minimum Wage: The lowest legal hourly, daily, or monthly pay rate that employers are legally required to pay their employees. In India, minimum wages are set by central and state governments.
-
Misconduct: Behavior by an employee that violates company rules, ethical standards, or legal requirements, which may lead to disciplinary action, including termination.
N
-
Net Pay (Take-Home Pay): The amount of money an employee receives after all deductions (taxes, provident fund, ESI, etc.) have been subtracted from their gross pay.
-
Non-Compete Clause: A clause in an employment contract that restricts an employee from working for a competitor or starting a similar business for a specified period after leaving the current employer. Enforceability varies by jurisdiction.
-
Non-Disclosure Agreement (NDA): See Confidentiality Agreement.
-
Notice Period: The period of time an employee or employer must give before terminating an employment contract. The length of the notice period is usually stipulated in the employment contract or by law.
O
-
Occupational Safety, Health and Working Conditions Code, 2020 (India): One of India's new labor codes, consolidating laws related to occupational safety, health, and working conditions, including aspects from the Factories Act, Mines Act, etc.
-
Overtime (OT): Hours worked by an employee beyond their standard working hours. Overtime pay is typically at a higher rate (e.g., 1.5 or 2 times the regular wage), as mandated by law (e.g., Factories Act, Shops and Establishments Acts in India, and the Code on Wages).
P
-
Payroll: The process of calculating and distributing wages, salaries, bonuses, and deductions to employees, as well as managing associated tax and social security contributions.
-
Payment of Gratuity Act, 1972 (India): See Gratuity.
-
Permanent Employee: An employee hired for an indefinite period, with no specified end date to their employment. They typically receive full benefits and protections under labor laws.
-
Probationary Period: An initial period of employment during which an employer assesses a new employee's suitability for a permanent role. During this period, different notice rules or termination procedures may apply.
-
Provident Fund (PF): See Employee Provident Fund (EPF).
R
-
Remote Work Policy: Guidelines set by an employer for employees working from a location outside the traditional office, covering aspects like working hours, communication, data security, equipment, and compensation.
-
Resignation: The voluntary termination of employment by an employee. Typically requires written notice as per the employment contract.
-
Retrenchment (Layoff/Redundancy): Termination of employment of a "workman" by an employer for reasons other than disciplinary action, typically due to surplus labor or economic restructuring. Indian law (Industrial Disputes Act) prescribes specific procedures and severance pay.
S
-
Severance Pay (Retrenchment Compensation): Financial compensation paid to an employee upon termination of their employment, particularly in cases of retrenchment or layoff. In India, it's typically 15 days' wages for each completed year of service for eligible "workmen."
-
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act - India): A landmark law in India that provides for the prevention of sexual harassment of women at the workplace and for the redressal of complaints of sexual harassment. Mandates the formation of Internal Complaints Committees (ICCs).
-
Shops and Establishments Acts (State-Specific, India): State-level legislations in India that regulate working conditions, hours, holidays, leave, and employment of women and children in commercial establishments, shops, and other non-factory workplaces.
-
Social Security Code, 2020 (India): One of India's new labor codes, aiming to consolidate laws related to social security benefits such as provident fund, ESI, gratuity, and maternity benefits, and extending coverage to unorganized workers, gig workers, and platform workers.
-
Standing Orders (Industrial Employment (Standing Orders) Act, 1946 - India): Certified rules and regulations governing the conditions of employment, such as working hours, holidays, wages, and termination, for industrial establishments. Many aspects now covered under the Industrial Relations Code, 2020.
-
Strike: A concerted stoppage of work by employees as a form of protest to demand improved working conditions, wages, or other concessions from the employer. Subject to regulations under the Industrial Relations Code.
T
-
Tax Deducted at Source (TDS): A system in India where tax is deducted from certain income sources (like salaries) by the payer at the time of payment. Employers are responsible for deducting and remitting TDS from employee salaries.
-
Termination of Employment: The end of the employment relationship between an employer and an employee, which can be due to resignation, dismissal, retrenchment, retirement, or the expiry of a fixed-term contract.
-
Trade Union: An organization formed by employees to protect and promote their collective interests concerning wages, working conditions, and other employment-related matters. Governed by the Trade Unions Act, 1926, now consolidated under the Industrial Relations Code.
U
-
Unfair Labor Practices: Actions by employers or trade unions that violate labor laws or impede the rights of employees, such as discriminating against union members, interfering with union activities, or engaging in illegal strikes/lockouts.
-
Unemployment Insurance: A social security benefit that provides temporary financial assistance to eligible individuals who have lost their jobs through no fault of their own. (Note: While some provisions exist in India, a comprehensive unemployment insurance system is still evolving.)
W
-
Wage (Code on Wages, 2019): Refers to all remuneration (whether by way of salary, allowances, or otherwise) expressed in terms of money or capable of being so expressed, which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment.
-
Whistleblower Protection: Legal provisions designed to protect employees who report illegal, unethical, or improper conduct within an organization from retaliation by their employer.
-
Workman (as per Industrial Disputes Act, India): A legal classification under Indian labor law, generally referring to employees engaged in manual, unskilled, skilled, technical, operational, clerical, or supervisory work. "Workmen" enjoy greater legal protections regarding termination, layoffs, and grievance redressal compared to "non-workmen" (e.g., managerial or administrative staff).
-
Working Hours: The total time an employee is required or permitted to be at the disposal of the employer, including breaks and overtime. Labor laws specify maximum working hours and rest periods.
-
Workplace Safety: See Health and Safety (Occupational).
-
Wrongful Termination: The unlawful dismissal of an employee, typically in violation of an employment contract, company policy, or applicable labor laws (e.g., without valid reason, proper notice, or due process).