HR & HRaaS Glossary India

A–Z Glossary of HR, HRaaS, Payroll, Compliance and Workforce Terms Used in India

A practical, founder-friendly and HR-team-friendly glossary explaining the most important Human Resources, HRaaS, recruitment, payroll, statutory compliance, employee lifecycle, workplace policy, labour law, performance and HR technology terms used by Indian businesses.

Human Resources in India has its own vocabulary. Founders, business owners, HR teams and managers regularly come across terms like CTC, gross salary, EPF, ESI, gratuity, professional tax, POSH, appointment letter, full and final settlement, HR audit, employee lifecycle, RPO, HRaaS, standing orders, Shops and Establishments, leave encashment, labour codes, contractor compliance and HRMS.

This glossary by Mirashka is created to help Indian startups, MSMEs, franchise businesses, family-owned companies, growing enterprises and HR teams understand HR terminology in simple business language.

It is not only a dictionary. It is a practical guide to understanding how HR terms affect hiring, payroll, documentation, compliance, employee experience, workplace discipline and business growth.

Glossary: A — Z

A to Z terms are shown in an easy and modern style.

235 terms
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A 11 terms

Absenteeism

Absenteeism refers to frequent or habitual absence from work without proper approval, sufficient reason or as per company policy. In Indian businesses, absenteeism is especially important in manufacturing units, retail stores, service centres, field sales teams, call centres and shift-based operations because absence directly affects daily productivity.

High absenteeism can indicate poor engagement, weak supervision, health issues, workplace dissatisfaction, salary disputes or ineffective attendance systems.

A proper attendance policy, leave approval process, manager reporting and monthly HR MIS can help businesses identify and reduce absenteeism.

Acceptance of Offer

Acceptance of offer means the candidate has formally accepted the employment offer made by the company. This may happen through email confirmation, signed offer letter, digital acceptance or HR portal confirmation.

Offer acceptance does not always guarantee joining. Candidates may still drop out before joining date.

  • Offer Letter
  • Offer Dropout
  • Joining Confirmation
  • Candidate Engagement

Accident Register

An accident register is a record maintained by certain establishments, factories or workplaces to record workplace accidents, injuries and safety incidents.

Factories, industrial units and establishments with safety-sensitive work environments generally need to maintain safety and accident-related records as per applicable law and internal safety process.

It helps in workplace safety tracking, insurance, compliance and risk management.

Act of Misconduct

An act of misconduct is any employee behavior that violates company policy, workplace discipline, code of conduct, legal requirement or ethical expectation.

  • Unauthorized absence
  • harassment
  • theft
  • violence
  • data leakage
  • insubordination
  • falsification of records
  • substance abuse at workplace
  • conflict of interest or policy violation.

Misconduct must be handled through documented disciplinary procedures, not emotional or verbal decisions.

Admin HR

Admin HR refers to the combined role where one person handles both administrative and HR responsibilities. This is common in small businesses and MSMEs.

  • Attendance
  • office administration
  • employee records
  • coordination with accounts
  • vendor coordination
  • joining documents and basic employee queries.

As the business grows, Admin HR often becomes insufficient because HR needs policy, compliance, engagement, hiring and documentation expertise.

Apprenticeship

Apprenticeship is a structured model where an individual receives practical workplace training while learning job-related skills.

Apprenticeships in India may be linked with apprenticeship laws, NAPS and structured skill development programs.

Useful for manufacturing, services, technology, retail and operational roles where fresh talent can be trained.

Applicant Tracking System

An Applicant Tracking System, or ATS, is software used to manage recruitment. It helps track job openings, candidate applications, interview stages, feedback, offers and joining status.

ATS is useful for companies that handle multiple roles or high hiring volume.

Even small businesses can start with a simple hiring tracker before moving to a full ATS.

Appraisal

Appraisal is a formal performance review process where employee contribution, achievements, behavior, goals and future growth are evaluated.

Appraisals are usually linked with salary revision, promotion, role change, feedback and development plans.

  • Performance Review
  • KRA
  • KPI
  • PMS
  • Salary Revision

Appointment Letter

An appointment letter is a formal employment document issued by the employer to the employee confirming employment terms.

  • Designation
  • joining date
  • salary
  • reporting manager
  • probation period
  • notice period
  • work location
  • working hours
  • confidentiality
  • company policies and other employment conditions.

An appointment letter is one of the most important employee documents for HR records, audits, disputes and clarity.

Attrition

Attrition refers to employees leaving the organization over a period of time.

  • Voluntary attrition
  • involuntary attrition
  • regrettable attrition
  • non-regrettable attrition and early attrition.

High attrition increases hiring cost, training cost, customer disruption and productivity loss.

Audit Trail

Audit trail means a documented record of actions, approvals, changes and decisions.

Payroll changes, attendance correction, leave approvals, warning letters, performance reviews, policy acknowledgments and employee document submissions should ideally have audit trails.

B 8 terms

Background Verification

Background verification is the process of checking a candidate's identity, employment history, education, address, criminal record, reference and other details.

Important for financial services, healthcare, education, IT, security, senior roles and sensitive positions.

Basic Salary

Basic salary is the fixed core component of salary. Many statutory benefits such as EPF, gratuity and bonus calculations may be linked to basic salary or wage definitions, depending on applicable rules.

Salary structure design must be done carefully because basic salary affects statutory cost and employee benefits.

Behavioural Interview

A behavioural interview evaluates how a candidate has behaved in past situations to predict future workplace behavior.

  • Tell us about a time you handled conflict.
  • Tell us about a time you missed a deadline.
  • Tell us how you handled a difficult customer.

Benefits Administration

Benefits administration means managing employee benefits such as insurance, leave benefits, reimbursements, wellness programs, meal cards, transport, gratuity, PF, ESI and other employee welfare schemes.

Biometric Attendance

Biometric attendance uses fingerprint, face recognition or other biometric methods to track employee attendance.

Common in factories, offices, clinics, retail outlets, franchise stores and service centres.

Bonus

Bonus is an additional payment given to employees. In India, statutory bonus may apply to eligible employees under applicable law, while performance bonus or incentive bonus may be company-defined.

  • Statutory bonus
  • performance bonus
  • joining bonus
  • retention bonus
  • festival bonus
  • sales bonus.

Buddy System

A buddy system assigns an existing employee to support a new joiner during onboarding.

Improves employee comfort, faster integration and early retention.

Bulk Hiring

Bulk hiring means hiring many employees for similar roles within a short period.

  • Sales
  • customer support
  • delivery
  • retail
  • manufacturing
  • BPO
  • hospitality
  • healthcare and field operations.

C 15 terms

C&B

C&B stands for Compensation and Benefits. It covers salary structure, incentives, bonuses, benefits, allowances, insurance, rewards and compensation strategy.

Candidate Experience

Candidate experience is the overall experience a candidate has during recruitment.

  • Job communication
  • interview scheduling
  • feedback
  • salary discussion
  • offer process and joining follow-up.

Poor candidate experience damages employer brand and increases offer dropouts.

Candidate Sourcing

Candidate sourcing means finding potential candidates through job portals, LinkedIn, referrals, databases, social media, campus networks, consultants or direct outreach.

Career Pathing

Career pathing is the process of defining possible growth routes for employees inside the company.

Useful for retention, engagement and succession planning.

Charge Sheet

A charge sheet is a formal document issued to an employee describing alleged misconduct and asking for explanation.

Used in disciplinary proceedings, especially in structured organizations, factories and industrial relations situations.

Code of Conduct

Code of conduct defines expected workplace behavior, ethics, discipline, confidentiality, communication standards and unacceptable conduct.

It protects the organization by making behavioral expectations clear.

Collective Bargaining

Collective bargaining is the process of negotiation between employer and workers or trade union representatives regarding wages, working conditions or employment terms.

Common in unionized workplaces, manufacturing and industrial establishments.

Compensation Benchmarking

Compensation benchmarking means comparing salary levels with market standards for similar roles, industries and geographies.

Helps in hiring, salary revision, retention and budgeting.

Competency

Competency is a combination of knowledge, skill, behavior and ability needed to perform a role well.

  • Communication
  • leadership
  • problem-solving
  • technical expertise
  • customer handling
  • negotiation
  • analytical thinking.

Compliance Calendar

A compliance calendar tracks statutory due dates, policy reviews, training dates, renewals, filings and HR compliance activities.

It prevents missed deadlines and improves audit readiness.

Confirmation

Confirmation means an employee has successfully completed probation and is confirmed in employment.

Confirmation letter.

Contract Labour

Contract labour refers to workers employed through a contractor for work at the principal employer's establishment.

Contract labour compliance may involve contractor registration, wage records, statutory contributions and principal employer obligations, depending on applicability.

Contractor Compliance

Contractor compliance means ensuring that vendors or contractors follow statutory wage, PF, ESI, attendance, safety and documentation requirements.

Important for manufacturing, facility management, security, housekeeping, logistics and industrial services.

Cost to Company

Cost to Company, or CTC, is the total annual cost a company incurs for an employee.

  • Gross salary
  • employer PF contribution
  • gratuity provision
  • bonus
  • insurance
  • allowances
  • variable pay and other benefits.

CTC is not equal to take-home salary.

Culture Fit

Culture fit means how well a candidate or employee aligns with company values, behavior, work style and environment.

D 8 terms

Daily Wage

Daily wage refers to wages calculated and paid on a per-day basis.

  • Factories
  • construction
  • maintenance
  • field jobs
  • project work and informal labour setups.

Deduction

Deduction is an amount reduced from salary.

  • PF
  • ESI
  • professional tax
  • TDS
  • loan recovery
  • advance recovery
  • unpaid leave
  • asset recovery or policy-based deductions.

Deemed Confirmation

Deemed confirmation refers to situations where an employee may be treated as confirmed after probation due to conduct, policy or absence of formal extension, depending on employment terms and legal interpretation.

Probation and confirmation terms should be clearly documented.

Designation

Designation is the official job title of an employee.

  • HR Executive
  • Sales Manager
  • Accounts Officer
  • Operations Head
  • Technician
  • Business Development Manager.

Disciplinary Action

Disciplinary action is action taken by an employer when an employee violates policy, discipline, code of conduct or performance expectations.

  • Verbal warning
  • written warning
  • suspension
  • show cause notice
  • domestic enquiry
  • termination.

Domestic Enquiry

Domestic enquiry is an internal disciplinary enquiry conducted by the employer in case of serious misconduct.

Common in industrial relations and formal disciplinary cases. It must generally follow principles of natural justice.

Documentation Gap

A documentation gap means required HR or employee documents are missing, incomplete, unsigned or outdated.

  • Missing appointment letter
  • KYC
  • bank details
  • PF form
  • policy acknowledgment
  • exit clearance or warning record.

Due Diligence

Due diligence is a detailed review done before investment, acquisition, partnership or compliance evaluation.

  • Employee records
  • contracts
  • payroll
  • statutory compliance
  • litigation
  • policies
  • liabilities and organization structure.

E 20 terms

E-Nomination

E-nomination is digital nomination filing for benefits such as EPF, where members nominate beneficiaries.

Employee Code

Employee code is a unique identification number assigned to an employee.

Useful for payroll, attendance, HRMS, employee records and internal tracking.

Employee Engagement

Employee engagement measures how emotionally committed, motivated and connected employees are to the company.

High engagement improves retention, productivity and culture.

Employee Experience

Employee experience is the full experience an employee has with the company from recruitment to exit.

Employee File

Employee file is the complete record of an employee's documents.

  • Appointment letter
  • ID proof
  • address proof
  • education documents
  • experience letters
  • bank details
  • policy acknowledgments
  • salary details
  • performance records and exit documents.

Employee Grievance

Employee grievance is a concern, complaint or dissatisfaction raised by an employee.

  • Salary issue
  • manager behavior
  • harassment
  • work pressure
  • leave dispute
  • unfair treatment.

Employee Handbook

Employee handbook is a detailed document explaining company rules, policies, benefits, conduct expectations and employee responsibilities.

Employee Lifecycle

Employee lifecycle is the complete employee journey: manpower planning, hiring, onboarding, confirmation, payroll, performance, engagement, development and exit.

Employee Master

Employee master is a central database containing employee information.

  • Name
  • employee code
  • department
  • designation
  • joining date
  • salary
  • location
  • reporting manager
  • documents
  • bank details and employment status.

Employee Relations

Employee relations refers to managing the relationship between employer and employees.

  • Grievance handling
  • disciplinary matters
  • communication
  • conflict resolution
  • employee trust and workplace culture.

Employee Self Service

Employee Self Service, or ESS, allows employees to access HR services digitally.

  • Leave application
  • payslip download
  • attendance view
  • document submission
  • profile update.

Employer Branding

Employer branding is how a company is perceived as an employer by candidates and employees.

Strong employer branding improves hiring quality and retention.

Employer of Record

Employer of Record, or EOR, is a model where a third party legally employs workers on behalf of another business, depending on service structure and jurisdiction.

Employment Contract

An employment contract is a formal agreement between employer and employee defining employment terms.

Appointment letters often act as practical employment documents for many businesses.

EPF

EPF stands for Employees' Provident Fund. It is a social security benefit where eligible employee and employer contributions are made toward retirement savings.

EPF affects payroll cost, employee benefits and statutory compliance.

EPFO

EPFO stands for Employees' Provident Fund Organisation. It administers provident fund, pension and insurance schemes for eligible employees and establishments.

ESI

ESI stands for Employees' State Insurance. It is a social security and health insurance scheme for eligible employees.

ESIC

ESIC stands for Employees' State Insurance Corporation, which administers the ESI scheme.

Exit Interview

Exit interview is a discussion with an employee leaving the organization to understand reasons for exit and collect feedback.

Exit Policy

Exit policy defines resignation, notice period, handover, clearance, full and final settlement and relieving process.

F 8 terms

Factory Licence

A factory licence is a permission required for factories covered under applicable factory laws and state rules.

Fixed Term Employment

Fixed term employment refers to employment for a specific duration with defined start and end dates.

Useful for project work, seasonal work, contract roles and time-bound assignments.

Flexi Staffing

Flexi staffing means hiring workers on flexible, contractual, temporary or project-based arrangements through staffing partners.

Form 16

Form 16 is a certificate issued by an employer to employees showing salary paid and TDS deducted during the financial year.

Form 11

Form 11 is used for EPF declaration by employees joining an establishment, depending on EPF requirements.

Form 12BA

Form 12BA provides details of perquisites and benefits provided to an employee.

Form 24Q

Form 24Q is a quarterly TDS return filed by employers for salaries.

Full and Final Settlement

Full and final settlement, or F&F, is the final settlement of salary, dues, deductions and recoveries after an employee leaves.

  • Unpaid salary
  • leave encashment
  • bonus
  • incentives
  • deductions
  • notice pay
  • asset recovery and reimbursements.

G 5 terms

Gratuity

Gratuity is a statutory benefit payable to eligible employees after completing the required continuous service, subject to applicable law.

Employers must understand gratuity liability as part of long-term employee cost.

Gross Salary

Gross salary is the salary before deductions such as PF, ESI, professional tax, TDS and other recoveries.

CTC may include employer-side costs. Gross salary is usually the employee's earnings before deductions.

Grievance Redressal

Grievance redressal is the formal process for receiving, reviewing and resolving employee complaints.

Group Mediclaim

Group mediclaim is health insurance provided by the employer to employees under a group policy.

Group Personal Accident Insurance

Insurance that covers employees against accidental injury, disability or death, depending on policy terms.

H 21 terms

Headcount

Headcount means total number of employees in the organization or department.

Hiring Dashboard

Hiring dashboard tracks open positions, candidates sourced, interviews, offers, joining dates and hiring status.

Hiring Funnel

Hiring funnel shows recruitment stages from candidate sourcing to joining.

  • Sourced
  • screened
  • shortlisted
  • interview scheduled
  • selected
  • offered
  • accepted
  • joined.

HR Administration

HR administration covers routine HR activities such as employee records, letters, attendance, payroll inputs, onboarding and exits.

HR Advisory

HR advisory is expert guidance on HR strategy, compliance, organization structure, policies, employee relations and people decisions.

HR Audit

HR audit is a structured review of HR documents, policies, payroll process, compliance, employee records and HR practices.

HR Business Partner

HR Business Partner, or HRBP, works closely with business teams to align HR with business goals.

HR Calendar

HR calendar is a schedule of recurring HR activities like payroll dates, review meetings, compliance tasks, birthdays, training, engagement and audits.

HR Dashboard

HR dashboard visually tracks key HR metrics like headcount, hiring, attrition, attendance, payroll, engagement and compliance status.

HR Due Diligence

HR due diligence is a detailed review of HR liabilities and people systems before investment, merger, acquisition or restructuring.

HR Generalist

An HR generalist handles multiple HR functions such as recruitment, onboarding, payroll coordination, employee relations and documentation.

HR Health Check

HR Health Check is a diagnostic review of a company's HR maturity.

  • Hiring
  • payroll
  • attendance
  • policies
  • employee records
  • compliance
  • engagement
  • HR technology and leadership gaps.

HR Helpdesk

HR helpdesk is a system where employees raise HR queries and receive support.

HRIS

Human Resource Information System is software that stores and manages employee information.

HRMS

Human Resource Management System is a broader HR software used for attendance, leave, payroll, employee records, performance and HR workflows.

HR Outsourcing

HR outsourcing means assigning HR tasks or HR function management to an external expert or service provider.

HR Policy

HR policy is a formal guideline that defines how the company manages employment-related matters.

HR Retainer

HR retainer is a monthly arrangement where an HR partner provides advisory or operational HR support.

HR Shared Services

HR shared services is a centralized HR support model for employee queries, processes, documentation and HR operations.

HR Transformation

HR transformation means upgrading HR from informal or manual processes to structured, digital, measurable and business-aligned HR systems.

HRaaS

HRaaS means Human Resources as a Service. It is a flexible model where businesses get HR support through a service partner instead of building a full internal HR department.

Mirashka HRaaS helps with employee lifecycle, payroll coordination, policies, documentation, employee support, HR reporting, engagement and people operations.

I 11 terms

IC

IC stands for Internal Committee under POSH framework, where applicable.

Industrial Dispute

An industrial dispute is a dispute between employer and employees, workmen or trade unions related to employment, wages, working conditions, termination or other labour matters.

Industrial Relations

Industrial relations refers to the relationship between employer, employees, workers, unions and labour authorities.

  • Manufacturing
  • factories
  • industrial units
  • large workforce setups and unionized workplaces.

Induction

Induction is the formal introduction of a new employee to the company, team, policies, role and workplace expectations.

Incentive

Incentive is additional pay linked to performance, sales, targets, productivity or business outcomes.

Increment

Increment is an increase in salary.

  • Annual appraisal
  • promotion
  • retention
  • correction
  • market alignment or performance reward.

Internal Committee

Internal Committee is formed under POSH requirements for receiving and redressing sexual harassment complaints at workplace, where applicable.

Internal Job Posting

Internal Job Posting, or IJP, allows existing employees to apply for open roles inside the company.

Internship

Internship is a temporary work-learning arrangement for students or freshers.

Interview Assessment Sheet

A structured form used by interviewers to evaluate candidates on skills, experience, communication, attitude, salary fit and role fit.

Involuntary Attrition

Involuntary attrition means employees leaving due to employer action such as termination, role redundancy or performance separation.

J 9 terms

Job Analysis

Job analysis is the process of studying a role to understand duties, skills, responsibilities, reporting and performance expectations.

Job Description

Job Description, or JD, defines responsibilities, skills, qualifications, experience and expectations for a role.

Job Evaluation

Job evaluation assesses the relative value of a role inside an organization.

Job Grade

Job grade is a level assigned to roles based on responsibility, seniority, pay band and hierarchy.

Job Offer

Job offer is the company's formal proposal to employ a candidate.

Job Portal

Job portal is an online platform used to post jobs and source candidates.

  • Naukri
  • LinkedIn
  • Indeed and other recruitment platforms.

Joining Bonus

Joining bonus is a one-time amount paid to a candidate for joining the company, usually subject to conditions.

Joining Checklist

Joining checklist is a list of documents and actions required when a new employee joins.

Joining Formalities

Joining formalities include document collection, appointment letter signing, policy acknowledgment, bank details, ID creation and onboarding.

K 3 terms

Key Performance Indicator

KPI is a measurable indicator used to track performance.

Sales revenue, number of calls, customer satisfaction score, hiring closure time, production output.

Key Result Area

KRA defines the key responsibility areas of a role.

For a sales manager: revenue generation, team management, pipeline review, client conversion.

KYC Documents

KYC documents are identity and address documents collected for verification and HR records.

  • Aadhaar
  • PAN
  • passport
  • voter ID
  • driving licence
  • address proof.

L 11 terms

Labour Codes

Labour Codes refer to India's consolidated labour law framework covering wages, industrial relations, social security, occupational safety, health and working conditions.

Indian employers should track labour-code implementation and compliance changes.

Labour Contractor

A labour contractor supplies manpower to a principal employer for specific work.

Labour Law Compliance

Labour law compliance means following employment, wage, social security, workplace safety and industrial relations laws applicable to the business.

Labour Welfare Fund

Labour Welfare Fund, or LWF, is a statutory contribution applicable in certain Indian states for employee welfare.

Applicability and contribution vary by state.

Layoff

Layoff means temporary inability or refusal to provide employment due to reasons such as shortage of work, power, raw material or other business reasons, depending on applicable law.

Leave Encashment

Leave encashment is payment made for eligible unused leaves as per company policy or applicable law.

Leave Management

Leave management is the process of tracking leave balances, applications, approvals and records.

Leave Policy

Leave policy defines types of leave, eligibility, approval process, carry-forward, encashment and leave rules.

Letter of Intent

Letter of Intent, or LOI, is a preliminary document expressing intent to offer employment or business engagement.

Letter of Warning

A letter of warning is a formal HR letter issued to an employee for misconduct, poor attendance, poor performance or policy violation.

LOP

Loss of Pay, or LOP, means unpaid leave or salary deduction for absence not covered by available or approved leave.

M 6 terms

Manpower Planning

Manpower planning is the process of estimating how many employees and what roles are needed to meet business goals.

Maternity Benefit

Maternity benefit refers to benefits available to eligible women employees under applicable maternity laws and company policy.

Minimum Wages

Minimum wages are the legally prescribed minimum wage rates applicable for certain categories, roles, industries, skills or locations.

Rates may vary by state, skill category, scheduled employment and wage notification.

Misconduct

Misconduct is behavior that violates company policy, law, ethics, discipline or employment terms.

Monthly HR MIS

Monthly HR MIS is a management report covering HR activities and metrics.

  • Headcount
  • new joiners
  • exits
  • attrition
  • attendance
  • payroll inputs
  • hiring status
  • employee issues and compliance gaps.

Muster Roll

Muster roll is a record of employee or worker attendance.

  • Factories
  • labour establishments
  • contract labour and industrial workplaces.

N 7 terms

NAPS

NAPS stands for National Apprenticeship Promotion Scheme. It is linked to apprenticeship promotion in India.

Natural Justice

Natural justice refers to fairness in decision-making, especially in disciplinary matters.

  • Give the employee a fair opportunity to be heard.
  • Avoid bias.
  • Follow proper procedure.

Net Salary

Net salary is the amount received by the employee after deductions.

Take-home salary.

New Joinee

A new joinee is an employee who has recently joined the company.

Non-Disclosure Agreement

NDA is an agreement where employees or parties agree not to disclose confidential information.

Notice Pay

Notice pay is salary payable or recoverable when an employee or employer does not serve the required notice period.

Notice Period

Notice period is the time required to be served before leaving employment.

Appointment letter, employment contract or HR policy.

O 7 terms

Offer Dropout

Offer dropout happens when a candidate accepts an offer but does not join.

High offer dropout indicates weak candidate engagement, delayed joining, salary mismatch or better competing offers.

Offer Letter

Offer letter is the document offering employment to a selected candidate.

Offer letter is usually before joining. Appointment letter confirms formal employment terms at or after joining.

Onboarding

Onboarding is the process of integrating a new employee into the company.

  • Documentation
  • induction
  • role clarity
  • policy explanation
  • team introduction
  • access setup and early support.

One-on-One Meeting

A one-on-one meeting is a structured discussion between manager and employee.

Useful for feedback, engagement, performance, support and retention.

Organization Chart

Organization chart visually shows reporting structure, roles and hierarchy.

Organization Design

Organization design is the process of structuring roles, teams, reporting lines and decision-making authority.

Overtime

Overtime is work performed beyond normal working hours.

Overtime rules depend on applicable law, establishment type and employee category.

P 19 terms

PAN

Permanent Account Number is required for taxation and payroll records in India.

Payroll

Payroll is the process of calculating and paying employee salary.

Payroll Calendar

Payroll calendar defines monthly dates for attendance closure, payroll input submission, salary processing, approval and salary disbursement.

Payroll Compliance

Payroll compliance means salary processing as per applicable statutory requirements like PF, ESI, professional tax, TDS, minimum wages and other laws.

Payroll Input

Payroll input is the data needed to calculate salary.

  • Attendance
  • leaves
  • LOP
  • reimbursements
  • incentives
  • deductions
  • salary changes
  • joining and exit details.

Payroll Processing

Payroll processing is the calculation of salary, deductions, net pay and payroll reports.

Payroll Register

Payroll register is a detailed salary record for employees.

Payslip

Payslip is a salary statement given to the employee showing earnings, deductions and net salary.

Performance Bonus

Performance bonus is variable pay linked to employee, team or company performance.

Performance Improvement Plan

Performance Improvement Plan, or PIP, is a structured plan given to an employee to improve performance within a defined timeline.

Performance Management System

PMS is a structured process for goal setting, performance review, feedback, ratings and development planning.

PF

PF generally refers to Provident Fund, a social security contribution for eligible employees.

PIP

PIP stands for Performance Improvement Plan.

Poaching

Poaching means hiring employees from competitors or other companies, often through targeted outreach.

Policy Acknowledgment

Policy acknowledgment is employee confirmation that they have read and accepted company policies.

POSH

POSH stands for Prevention of Sexual Harassment at the workplace.

Indian organizations covered by POSH requirements need policy, awareness, complaint mechanism and Internal Committee where applicable.

Probation

Probation is an initial employment period during which employee suitability is reviewed.

Professional Tax

Professional tax is a state-level tax deducted from salary in applicable Indian states.

Promotion

Promotion is movement to a higher role, grade, designation or responsibility level.

Q 2 terms

Quality of Hire

Quality of hire measures how successful a hired candidate is after joining.

  • Performance
  • retention
  • manager satisfaction
  • productivity and cultural fit.

Query Resolution

Query resolution means responding to employee HR questions related to salary, leave, policy, documents, benefits or attendance.

R 16 terms

Recruitment

Recruitment is the process of finding and hiring employees.

Recruitment Agency

A recruitment agency helps companies source and screen candidates.

Recruitment Process Outsourcing

RPO is a model where an external partner manages the recruitment process partially or fully.

Reference Check

Reference check means contacting previous employers or professional references to verify candidate background.

Reimbursement

Reimbursement is repayment of approved business expenses incurred by an employee.

Relieving Letter

Relieving letter confirms that an employee has been relieved from duties after completing exit formalities.

Remote HR

Remote HR refers to HR services delivered virtually.

Resignation

Resignation is an employee's formal decision to leave employment.

Resignation Acceptance

Resignation acceptance is employer confirmation that resignation has been accepted.

Retention

Retention is the ability of a company to keep employees.

Retention Bonus

Retention bonus is an amount paid to encourage an employee to stay for a defined period.

Retrenchment

Retrenchment refers to termination of service for reasons other than disciplinary action, retirement or certain excluded reasons, depending on applicable law.

Rewards and Recognition

Rewards and recognition systems appreciate employee performance, contribution, behavior or values.

Risk Heatmap

Risk heatmap visually shows high, medium and low HR risk areas.

Role Clarity

Role clarity means an employee understands responsibilities, reporting, authority and expected outcomes.

Roster

Roster is a schedule of employee shifts or working days.

S 17 terms

Salary Breakup

Salary breakup shows different salary components such as basic, HRA, allowances, bonus, employer PF and other benefits.

Salary Revision

Salary revision is change in salary due to appraisal, promotion, correction or market adjustment.

Screening

Screening is the process of evaluating candidates before interview.

Separation

Separation means employee exit from the organization.

Settlement

Settlement refers to financial or employment closure between employer and employee.

Shift Allowance

Shift allowance is additional pay for working specific shifts.

Shops and Establishments Registration

Shops and Establishments registration is a state-level registration applicable to many commercial establishments, shops and offices.

Shortlisting

Shortlisting means selecting suitable candidates for further interview or evaluation.

Show Cause Notice

Show cause notice asks an employee to explain conduct, absence, misconduct or policy violation before action is taken.

Skill Gap

Skill gap is the difference between skills required and skills available in employees or candidates.

Skill Matrix

Skill matrix maps employee skills against required job skills.

Social Security

Social security refers to benefits and protections for employees such as PF, ESI, gratuity, maternity benefits and other applicable schemes.

Standing Orders

Standing orders are formal rules defining employment conditions, conduct, discipline, leave, attendance, misconduct and other workplace matters in applicable establishments.

Statutory Bonus

Statutory bonus is bonus payable under applicable bonus law to eligible employees.

Statutory Compliance

Statutory compliance means following laws and regulations applicable to employment, wages, safety, social security and workplace practices.

Succession Planning

Succession planning is preparing future leaders for critical roles.

Suspension

Suspension is temporary removal from duty, usually during enquiry or disciplinary process.

T 7 terms

Talent Acquisition

Talent acquisition is a strategic hiring function focused on current and future talent needs.

Talent Management

Talent management includes attracting, developing, retaining and planning talent for business success.

TDS

Tax Deducted at Source is tax deducted by employer from salary as per income tax rules.

Termination

Termination means ending employment by employer action.

Time Office

Time office is the function that manages attendance, shifts, overtime and workforce time records, common in factories and industrial workplaces.

Training Calendar

Training calendar is a planned schedule of learning and development activities.

Travel Policy

Travel policy defines rules for official travel, approvals, reimbursements and allowances.

U 4 terms

UAN

Universal Account Number is the unique number allotted to EPF members.

Unauthorised Absence

Unauthorised absence means absence from work without approval or valid reason.

Unpaid Leave

Unpaid leave is leave without salary.

Upskilling

Upskilling means improving employee skills for current or future roles.

V 4 terms

Variable Pay

Variable pay is compensation linked to performance, targets or business results.

Vendor Compliance

Vendor compliance means ensuring vendors, contractors or outsourced partners follow applicable HR, labour, safety and documentation rules.

Virtual HR

Virtual HR is HR support delivered remotely.

Voluntary Attrition

Voluntary attrition occurs when employees leave by their own decision.

W 10 terms

Wage Register

Wage register is a statutory or internal record of wages paid to employees or workers.

Warning Letter

Warning letter is a formal document issued for misconduct, absence, poor performance or policy breach.

Welfare Officer

Welfare officer is a role required in certain factories or establishments based on employee count and applicable law.

Whistleblower Policy

Whistleblower policy allows employees to report unethical, illegal or improper conduct safely.

Work From Home Policy

Work from home policy defines rules for remote work, availability, productivity, security and communication.

Workmen

Workmen is a legal term used in labour and industrial relations context for certain categories of employees as defined under applicable law.

Workforce Analytics

Workforce analytics uses employee data to understand trends in hiring, attrition, attendance, productivity and workforce cost.

Workforce Planning

Workforce planning means estimating current and future manpower needs.

Workplace Harassment

Workplace harassment means unwanted conduct that affects dignity, safety or work environment.

Workplace Investigation

Workplace investigation is a structured review of complaints, misconduct, harassment, fraud or policy violations.

X 2 terms

X-Factor Candidate

An informal hiring term used for a candidate who brings exceptional energy, culture fit, skill or growth potential beyond basic job requirements.

XML Payroll Upload

A technical payroll or statutory-compliance term used in some systems where data is uploaded in structured digital formats.

Y 2 terms

Year-End Appraisal

Year-end appraisal is the annual review of employee performance.

Yearly CTC

Yearly CTC is the annual cost to company for an employee.

Z 2 terms

Zero Tolerance Policy

Zero tolerance policy means the company will not accept certain behaviors under any circumstances.

  • Sexual harassment
  • violence
  • fraud
  • theft
  • discrimination
  • bullying
  • safety violation or data breach.

Zone-Wise Workforce Planning

Zone-wise workforce planning means planning manpower by region, city, territory or operational zone.

  • Sales
  • logistics
  • retail
  • franchise
  • field service and distribution businesses.
Quick Reference

India-Specific HR Compliance Terms Quick Index

EPF

Employees' Provident Fund.

ESI

Employees' State Insurance.

Gratuity

Long-term statutory employee benefit.

Professional Tax

State-level salary tax where applicable.

Labour Welfare Fund

State-specific employee welfare contribution where applicable.

Shops and Establishments

State-level registration and compliance framework for shops, offices and commercial establishments.

Factories Compliance

Compliance applicable to covered factory establishments.

Contract Labour Compliance

Compliance related to workers engaged through contractors.

POSH

Prevention of Sexual Harassment at workplace.

Minimum Wages

Legally prescribed wage floor based on state, role, industry or skill category.

Bonus

Statutory or company-defined additional payment.

Maternity Benefit

Benefit framework for eligible women employees.

Standing Orders

Formal workplace service rules in applicable establishments.

Labour Codes

India's consolidated labour-code framework.

Next Step

Do Not Just Understand HR Terms. Build The Right HR System.

HR terminology becomes useful only when it is converted into proper systems, documents, payroll discipline, employee records, compliance calendars, hiring processes and employee support.

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