HR glossary: definitions and terms, A to Z
Plain-language definitions of the HR, leave, and compliance terms small and mid-sized companies ask about. Filter by category or browse A to Z.
A
Leave
Annual leave carryover
Leave carryover is the unused paid leave an employee is allowed to move into the next year, often capped at a set number of days or with an expiry date.
HR basics
ATS (Applicant Tracking System)
An ATS is software for managing hiring - posting jobs, collecting applications, and moving candidates through interview stages - separate from core HR, which manages people you already employ.
C
Pay
Compensation history and effective dating
Compensation history is the record of an employee's pay over time, and effective dating means each change is stored with the date it takes effect, so past and future salaries stay accurate.
HR basics
Core HR
Core HR is the essential layer of HR software - employee records, leave and absence, compensation history, roles and permissions, and an audit trail - without add-ons like recruiting or payroll.
D
E
HR basics
Employee self-service
Employee self-service lets staff handle routine HR tasks themselves - request leave, update personal details, check balances - instead of emailing HR for each one.
Compliance
EU data residency
EU data residency means personal data is stored and processed on servers inside the European Union, which simplifies GDPR compliance and avoids cross-border transfer complications.
F
G
H
HR basics
HR audit log
An HR audit log is a tamper-resistant record of who changed what and when across the system - edits to records, salaries, and leave approvals - used for accountability and compliance.
HR basics
HRIS (Human Resources Information System)
An HRIS is the central software a company uses to store and manage employee data - records, leave, compensation, and roles - in one place instead of scattered spreadsheets.
L
Leave
Leave accrual
Leave accrual is the way paid time off builds up over the year, usually a set number of days or hours added each month rather than granted all at once.
Leave
Leave balance and leave ledger
A leave balance is how much paid time off an employee has left, and a leave ledger is the running record of every accrual, deduction, and adjustment behind that number.
P
Pricing
Per-employee pricing (PEPM)
Per-employee-per-month (PEPM) pricing charges for HR software by headcount, so the bill rises every time you hire and add-on modules are often charged on top.
Leave
Pro-rata holiday entitlement
Pro-rata holiday is the share of annual leave a part-time employee or a mid-year joiner earns, calculated in proportion to the time or hours they work.
Leave
Probation period
A probation period is an initial stretch of employment, commonly one to six months, during which either side can end the contract on shorter notice while the fit is assessed.
Leave
Public holidays
Public holidays are nationally or regionally mandated non-working days, and they differ by country, which makes a shared absence calendar harder to manage for cross-border teams.
R
S
Leave
Sick leave tracking
Sick leave tracking records absence due to illness separately from annual leave, so balances, patterns, and any statutory sick-pay rules are handled correctly.
Leave
Statutory annual leave
Statutory annual leave is the minimum paid holiday an employer must give by law; under the EU Working Time Directive that minimum is four weeks, which is 20 days for a five-day week, and many countries set more.
Compliance
Subprocessor
A subprocessor is a third-party service a software vendor uses to deliver its product - hosting, email, error monitoring - and under GDPR each one handling personal data needs its own data-processing terms.
T
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