A
Assignment Letter
A document detailing the terms and conditions of an employee’s international assignment.
At-Will Employment
A doctrine under which an employer can terminate an employee at any time for any reason, except an illegal one, without warning, as long as the reason is not illegal.
Administrative Services Outsourcing (ASO)
A type of outsourcing where companies delegate specific administrative tasks, such as payroll and benefits administration, to a third-party provider. Unlike a PEO, an ASO does not become a co-employer but still provides essential administrative support.
Ancillary Benefits
Additional benefits offered to employees beyond basic health insurance and retirement plans, such as dental, vision, and wellness programs. PEOs and EORs manage the administration of these ancillary benefits to enhance employee satisfaction and well-being.
Audit Compliance
Ensuring that HR practices and records are in accordance with legal and regulatory standards through regular audits. PEOs and EORs conduct compliance audits to identify and address any discrepancies or non-compliance issues.
B
Benefits Administration
The process of managing employee benefits such as health insurance, retirement plans, and other perks on a global scale.
Business Entity
A company or organization formed to conduct business, essential for compliance when hiring employees internationally through a PEO or EOR.
Benchmarking
The practice of comparing a company’s HR metrics, such as compensation and benefits, against industry standards or competitors. PEOs and EORs provide benchmarking data to help companies maintain competitive and fair practices.
Business Continuity Planning
The process of creating systems and procedures to ensure that essential business functions can continue during and after a disruption. PEOs and EORs assist in developing and implementing business continuity plans to protect the workforce and maintain operations.
C
Co-Employment
A relationship where both the PEO/EOR and the client company share employer responsibilities for the employees.
Compliance
Adherence to local labor laws, tax regulations, and employment standards in different countries.
Cross-Cultural Training
Programs designed to help employees understand and adapt to different cultural norms and practices when working in foreign countries.
D
Data Protection
Ensuring that employee data is managed in accordance with international privacy laws such as GDPR.
Dual Employment
When an employee is employed by both a local entity and a foreign employer, common in global assignments.
Dependent Care Benefits
Benefits provided to employees to help them manage the care of their dependents, such as children or elderly family members. PEOs and EORs administer these benefits, which may include childcare services, elder care support, and financial assistance.
Due Diligence
The process of thoroughly investigating and assessing potential risks and legal obligations before entering into an employment arrangement or business transaction. PEOs and EORs conduct due diligence to ensure informed decision-making and compliance with regulations.
E
EOR (Employer of Record)
A service provider that becomes the legal employer of an organization’s employees in a foreign country, handling compliance, payroll, and taxes.
Expatriate Management
The administration of employees who are sent to work in a foreign country.
Equal Employment Opportunity (EEO)
The principle of providing fair treatment to all employees without discrimination. PEOs and EORs support EEO by ensuring that hiring and employment practices comply with local anti-discrimination laws.
F
Fraud Prevention
Measures taken to detect and prevent fraudulent activities within the organization. PEOs and EORs implement policies and procedures to protect the company and its employees from fraud.
FTE (Full-Time Equivalent):
A unit that indicates the workload of an employed person in a way that makes workloads comparable across various contexts.
G
Global Mobility
The process of managing employees who work in multiple countries, ensuring compliance with local labor laws and regulations.
Gross-Up
A practice where the employer increases the gross amount of an employee’s wages to account for taxes, ensuring the employee receives a specific net amount.
Gross to Net
The process of calculating an employee’s net pay by subtracting all necessary deductions, such as taxes and benefits, from their gross salary. This is a critical function handled by Global PEO and EOR providers to ensure accurate and compliant payroll processing across different regions.
H
Harmonization
Aligning employment terms and conditions across different countries to ensure consistency and compliance.
Home Country
The country in which an expatriate or foreign employee is working.
Hybrid Work Model
A work arrangement where employees split their time between working remotely and working in the office.
I
Immigration Compliance
Ensuring that all employees working internationally have the necessary visas and work permits.
In-Country Partner
A local service provider or consultant that assists with compliance and other employment-related tasks in the host country.
J
Job Classification
The process of categorizing jobs based on their duties and responsibilities, crucial for compliance with local labor laws.
Jurisdiction
The legal authority of a country or region to govern employment laws and regulations.
Jurisdictional Compliance
Adherence to the specific laws and regulations that apply in different legal jurisdictions where a company operates.
K
Key Talent
Critical employees who are essential for the company’s operations, often involved in global assignments.
Knowledge Transfer
The process of transferring knowledge from expatriates to local employees during and after international assignments.
L
Labor Law
Regulations governing employment practices in different countries, critical for ensuring compliance in global operations.
Localization
Adjusting an expatriate’s compensation and benefits to align with local market standards in the host country.
Liability Insurance
Insurance coverage that protects a company from financial losses due to legal claims related to employment practices. PEOs and EORs often provide liability insurance to cover risks associated with employing workers in different countries.
M
Multi-Country Payroll
The process of managing payroll for employees in multiple countries, ensuring compliance with local tax laws and regulations.
Mutual Recognition Agreements (MRAs)
Agreements between countries to recognize each other’s professional qualifications and certifications.
N
Non-Resident Taxation
Taxation rules that apply to employees working in a country where they are not a resident.
National Insurance
A system of contributions paid by workers and employers towards the cost of certain state benefits in the host country.
O
Offshoring
The relocation of business processes from one country to another, often requiring PEO/EOR services to manage employees in the new location.
Onboarding
The process of integrating a new employee into a global workforce, ensuring they understand local laws and company policies.
P
PEO (Professional Employer Organization)
A service provider that manages human resources, payroll, benefits, and compliance for companies, especially useful for international operations.
Permanent Establishment (PE)
A fixed place of business that gives rise to tax obligations in the host country, important for compliance when using EOR services.
Q
Quota Systems
Government-imposed limitations on the number or proportion of foreign workers that can be employed in a country.
Qualifying Period
The time an employee must work before gaining certain rights or benefits, which can vary by country.
R
Remote Work Compliance
Ensuring that remote employees working in different countries comply with local labor laws and tax regulations.
Repatriation
The process of returning an expatriate employee to their home country after an international assignment.
S
Social Security Agreements
Bilateral agreements between countries to coordinate social security benefits for employees working internationally.
Secondment
The temporary transfer of an employee to another country or business unit within the same organization.
T
Tax Equalization
A policy to ensure that an expatriate’s tax burden is the same as it would be in their home country.
U
Umbrella Company
A company that employs contractors who work on temporary assignments, often used in international employment to ensure compliance.
Unemployment Insurance
A system of social welfare payments made to unemployed people, with regulations varying by country.
V
Visa Sponsorship
The process by which a company or organization sponsors an employee’s visa to work in a foreign country.
Voluntary Benefits
Optional benefits provided by employers that employees can choose to participate in, often tailored to local preferences.
Vendor Management
The process of managing and coordinating with external suppliers or service providers.
W
Work Permits
Legal authorizations that allow a foreign employee to work in a specific country, crucial for compliance.
Wage Parity
Ensuring equal pay for employees performing similar work, regardless of their country of employment.
Workers' Compensation
Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.
Y
Year-End Processing
The process of preparing and submitting annual payroll reports to local tax authorities in multiple countries.
Z
Zone of Employment
The geographical area within which employment laws and regulations of a specific country apply.
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- Payroll OutsourcingPayroll Outsourcing
- Talent AcquisitionTalent Acquisition
- Statutory ComplianceStatutory Compliance
- Global PEO | EOR ServicesGlobal PEO | EOR Services
- About UsAbout Us
- Contact UsContact Us
- Find JobsFind Jobs
- CSRCSR
- Our BlogOur Blog
- HR TemplatesHR Templates
- SitemapSitemap
-
Sales Enquiry: +91 89259 27076
-
For Sales Enquiry: sales@sbshr.com
-
For Job Enquiry: talentacquisition@sbshr.com
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