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HR for teams in India and the US: people, leave, time and documents in one place.

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Glossary

HR terms, in plain words.

Definitions for the HR, payroll and employment-law terms teams in India and the US run into.

C E F G H O P S T

C

Casual LeaveCasual Leave (CL) is a short-duration leave type in India typically granted for unplanned or personal reasons, usually ranging from 7 to 12 days per year.

E

Earned LeaveEarned Leave (EL), also called Privilege Leave (PL), is a type of paid leave in India that employees accrue over time — typically 15 to 18 days per year — and can carry forward or encash.
Employer of RecordAn Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of a client company, handling payroll, taxes, and compliance without requiring the client to establish a local legal entity.
ESICEmployee State Insurance Corporation (ESIC) is a statutory social security scheme in India that provides medical and cash benefits to employees earning up to INR 21,000 per month, funded through contributions of 3.25% from employers and 0.75% from employees.

F

FMLAThe Family and Medical Leave Act (FMLA) is a US federal law that entitles eligible employees to up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.

G

GCCA Global Capability Center (GCC) is a captive offshore unit set up by a multinational company to deliver specialized business functions — such as IT, finance, or R&D — from a lower-cost location, most commonly India.
GratuityGratuity is a statutory lump-sum payment made by an employer to an employee in India upon separation after completing five or more years of continuous service, calculated as (last drawn salary × 15 × years of service) / 26.

H

HRISA Human Resource Information System (HRIS) is software that centralizes employee data, automates HR processes, and serves as the system of record for workforce management — covering everything from hiring and onboarding to payroll, leave, and compliance.

O

OffboardingOffboarding is the structured process of managing an employee's departure from an organization — including knowledge transfer, access revocation, final settlement, and exit documentation — to ensure a smooth, compliant, and secure transition.
OnboardingOnboarding is the structured process of integrating a new employee into an organization — covering orientation, training, system access, document collection, and cultural assimilation — to accelerate their productivity and long-term retention.

P

Professional TaxProfessional Tax is a state-level tax in India levied on income from employment, profession, or trade, with a maximum annual cap of INR 2,500 — though not all Indian states impose it.
Provident FundThe Employees' Provident Fund (EPF) is a mandatory retirement savings scheme in India requiring both employer and employee to each contribute 12% of the employee's basic salary and dearness allowance, applicable to establishments with 20 or more employees where the salary is up to INR 15,000 per month.
PTOPaid Time Off (PTO) is a US employment benefit that grants employees a bank of paid leave days usable for vacation, illness, personal matters, or any reason — as distinct from traditional separate vacation and sick leave buckets.

S

Sick LeaveSick Leave is employer-provided paid or unpaid leave that allows employees to be absent from work due to illness, injury, or medical appointments — with requirements varying significantly between US states and Indian labor laws.

T

TDSTax Deducted at Source (TDS) is a mechanism under the Indian Income Tax Act where the employer deducts tax from an employee's salary at the time of payment and remits it directly to the government — governed by Section 192 and reported via Form 24Q.