HR Glossary

Absence management is one of employer or HR’s approaches via policies, procedures or programs,to reduce employee absenteeism, avoid workforce disruption and maximise team’s overall productivity.

Absence management policy, as known as sickness absence policy, refers to a set of company-wide HR strategies to reduce the unnecessary absenteeism and to make sure all team members are on the same page.

The account code is a series of accounting numerical codes arranged in the order of the subject classification in chart of accounts

Accrual leave is the amount of leave time that employees earned per month or per year up to the company’s HR policy and the HK labour law which had not been used or paid. This time can be used toward vacations, personal time, or even sick days.

The average daily wage hk is designed to protect employees of wage fluctuation by calculating wages earned over a period of 12 months.

The one-stop human resources management system with a powerful AI engine can simplify payroll & human resources and other complicated issues.

AWS cloud, as known as the amazon web service, is the on-demand, cloud computing platform offered by Amazon.com Inc, has become a giant component of the e-commerce giants’ business portfolio, offering more than 200 fully featured services from data centers globally.

Annual leave refers to paid time off to employees as a part of the Employment Ordinance. According to the labour law, an employee is entitled to annual leave with pay after having been employed under a continuous contract for every 12 months.

Annual leave is a welfare clause under labor laws, which guarantees employees a certain amount of rest each year. According to the Employment Ordinance, employees are entitled to paid annual leave after every 12 months of employment under a continuous contract. The number of days of paid annual leave increases from 7 days to a maximum of 14 days according to the employee's seniority.

An application tracking system(ATS) is a software application that enables the electronic handling of recruitment needs.There are many benefits of using an ATS system, for example, the hiring team will avoid mistakes, reduce the time to hire, cut down on the cost per hire, and improve the quality of the hires. Plus, positions will be filled more quickly and administrative work will be minimal

Attendance management is a regulation for the company to inspect and manage employee attendance, including whether they are late and leave early, whether they are absent from work and ask for leave, etc.

Attendance management system refers to an organization’s approach to tracking employee time and attendance information.

Attrition meaning in HR refers to the departure of employees from the organisation for any reason(voluntary or involuntary). Attrition rate is the rate at which employees leave an organisation divided by the average number of the employees in it within a given period.

What is an HR System? HR System (Human Resource System)It is a software solution that uses technology to manage human resource processes such as personnel, scheduling, attendance, and payroll. It automates tedious manual operations, helping companies save time, reduce costs, ensure regulatory compliance, and improve operational efficiency. Simply put, an HR system helps companies handle...

Back pay refers to any form of the unpaid financial compensation that the company owes the employee.

Base pay in salary, also known as basic salary, is an initial rate of compensation that employees receive in charge of their work or service.

Behavioural competency refers to any behaviour attributes and personality traits that a person might have knowledge and skill set.

What does bereavement mean is a category of the leave many companies have so that the employees can deal with the grief associated with losing a loved one.

BIR60 is one of the income taxes in Hong Kong. It is levied on the annual income and allowances received by employees working.

What does biweekly pay means is one of the most commonly used pay periods by employers. The payments issued to employees are on the set day, every other week.

A blended workforce consists of a variety of employees on different types of contracts such as full time employees, part time employees, temporary employees, contract employees, internship employees, freelancers and etc.

The Boomerang employee is a worker who leaves the company due to personal or professional reasons and is rehired at a later point in the same position or the different position.

A bring your own device policy(BYOD) refers to the trend of employees using personal devices to connect their organisational networks and access work-related systems and potentially sensitive data.

Calendar day means the period of elapsed time, using Coordinated Universal Time or local time that begins at midnight and ends 24 hours later at the next midnight.

Casual labour or casual worker refers to temporary or part-time employees. Since the pay period of casual workers is short, and the pay date and mode is not that standardised, employers can freely manage casual workers.

Chart of accounts is a financial organisation tool. There are 5 major account types: assets, liabilities, equity, income, and expense.

The common leave year means that the employer can designate any period of 12 months to define the start and end date of the leave year.

The data dictionary is a collection of information used to describe customised data in the system and lists all possible predefined data.

Employee database is a collection of personnel files (URL), usually created and maintained by humans or machines. The process is generally as follows: collecting relevant information, scanning and entering the files (if any), sorting out, and finally completing the archiving.

In Hong Kong, except for persons exempted under the Mandatory Provident Fund Schemes Ordinance, full-time and part-time employees, as well as self-employed persons, must participate in the MPF scheme.

According to the guidelines of the Labor Bureau, employees can choose to make additional voluntary contributions to the MPF through their employers in the contribution account in addition to the mandatory contributions.

Employer's return is a tax return form required by the Hong Kong Inland Revenue Department for all employers to declare employees' salaries, benefits, stock options and other items. Tax forms usually include IR56B, IR56E, IR56F, IR56G, IR56M and other different types of forms.

End of year payment means any annual payment (including double pay, 13th month payment, end of year bonus) of a contractual nature.

eTAX is the gateway to the Inland Revenue Department’s electronic services. It offers an easy, secure and environment-friendly means to facilitate your compliance with the tax law.

Expense claim means that the expenses incurred by an individual due to company affairs or a certain business.

FTE stands for Full Time Equivalent, which also means full-time, means a single job, and no other part-time job. Full-time workers are also called full-time employees.

Hourly rate is a method of calculating payroll by the hour. Like those who calculate payroll by the hour, employees can agree with the employer on the hourly wages, but the hourly wages should not be lower than the basic hourly wages.

HR App is a key part for HR systems, which usually includes scheduling, attendance, leave, expense claims and more functions.

HR SaaS is human resource management software as a service (out-of-the-box human resource management software running on the cloud). As the name suggests, it is a set of personnel management applications that can assist the personnel department in handling daily affairs.

HR software, HRMS(Human Resources Management System) refers to a human resource management system, which is a human resource software used to combine many necessary human resources functions, such as employee attendance, salary, vacation, tax declaration, and other transaction management. HRMS system can help simplify the management process and improve work efficiency.

HMR means the management issues for completing the tasks of staff or personnel aspects in management work.

Income additions refer to the income item in the employee's relevant income. Income deductions refer to deductions from an employee's relevant income.

IR56 refers to the employer's tax return, including IR56B, IR56F, IR56E, IR56G, and IR56M.

The IR56 Forms Preparation Tool is a web-based application to provide a convenient way for employers to prepare up to 2,000 sets of IR56B or IR56F record in one single data file. The Preparation Tool can be used by employers without any installation process.

IR56B refers to the payroll and pension tax return filed by the employer, which is only applicable to employees who are still employed on March 31. The Inland Revenue Department (IRD) issues it to Hong Kong employers on April 1 each year and requires employers to return it within one month in order to accurately assess the amount of salaries tax paid by employees.

IR56E refers to the notification letter filled by the employer about the start of employment of its employees. IR56E is a tax form only for new employees. The employer must submit this form to the Inland Revenue Department (IRD) within 3 months of the employee's employment.

IR56F is the "notification to be completed by the employer regarding the employee's termination of employment", which is applicable when the employee leaves the company.

IR56G is the "notification to be completed by the employer regarding the employee's departure from Hong Kong", which is applicable when the employee leaves Hong Kong.

IR56M form is a notice for payment of remuneration to persons other than employees. Workstem one-stop cloud & human resources management platform includes a complete tax reporting function.

Overview of major labour law: Employment Ordinance (Chapter 57 of the Laws of Hong Kong) Factories and Industrial Undertakings Ordinance (Chapter 59 of the Laws of Hong Kong) Employees' Compensation Ordinance (Chapter 282 of the Laws of Hong Kong) Occupational Safety and Health Ordinance (Chapter 509 of the Laws of Hong Kong) Minimum Wages regulations.

Application for leave refers to the leave application form that the employee submits to the supervisor for approval after completing the reason, leave type, and relevant data through the HR system according to the actual situation and attaching the corresponding documents.

Long service payments are payments that employees can claim from their employers when they terminate their employment contracts. An employee may claim long service payment after being employed under a continuous contract for 5 years without being redeemed or permanently unfit for the job, etc.

Maternity leave is an employee benefit that working women enjoy to apply for leave after pregnancy and childbirth.

If an employee is sick and needs to take leave, he needs to provide a certificate issued by a registered doctor to the company.

The minimum wage is the lower limit agreed between the employer and the employee as regulated by the Employment Ordinance.

Mandatory Provident Fund Schemes, also known as MPF. It is a retirement protection system launched by the Hong Kong Special Administrative Region Government and implemented in December 2000.

Employers should enrol MPF scheme for for full-time and part-time employees aged 18 but under 6 within the first 60 days of employment.

The term defined in 418 is 「continuous contract」. It is commonly known as Ordinance 418 in the HR circle in Hong Kong.It means that an employee who has been employed continuously by the same employer for four weeks or more, with at least 18 hours worked in each week is further entitled to such benefits as paid annual leave, severance payment, and long service payment, etc.

713 means that no matter what kind of employee is(monthly, daily or piece-based paid), the employee’s leave pay shall be calculated on the basis of the average daily wage (ADW) earned by the preceding 12 months instead of simply dividing by 30 days, the number of days or the number of working days in the month. If the employer is found not to calculate wages based on Ordinance 713, the employer should recalculate all the wages and pay the underpaid wage.

OT, commonly known as overtime, generally refers to the extending working hours beyond "normal working hours".

An employee under a continuous contract is entitled to sickness allowance if the sick leave taken is not less than 4 consecutive days.

Part-time job, which means that it is opposite to the concept of a full-time job. The weekly working hours are less than full-time jobs. It is generally a job that students/housewives find outside of school or their own work.

Payroll analysis is the process of using a variety of analysis methods to comprehensively analyse the payroll data of an enterprise.

Payroll management is one of the ongoing HR management issues that design, develop and maintain relevant payroll management systems.

The payroll statement is mainly used to reflect the economic status of the enterprise and the composition of labour costs and fluctuations.

Payroll meaning: All remuneration, earnings, allowances, tips and service charges paid in money by an employer to an employee.

Personnel files are used to record personal experience and related work performance, usually including original records

Roster, also known as schedule, refers to the form arranged by the supervisor or HR to allocate duty time for employees according to the store's demand, the number of employees, and the status of employee reports. There are various forms of working rosters, which are the basis of attendance.

Scheduling means that employees work according to the morning, midday and evening shifts arranged by the enterprise.

“Severance Payment” means the payment made by the employer to an employee who is forced to quit the job for suspension or redundancy.

Shift change generally means that after the shift schedule is confirmed, the employee cannot attend a specific shift due to personal reasons, and communicates with other colleagues to adjust the change of the day.

An employee employed under a continuous contract and meets the conditions required by Employment Ordinance is entitled to corresponding sick leave and sickness allowance.

Sick leave pay is a sum equivalent to four-fifths of the normal wages that employees would have earned if they had worked.

Statutory holiday is also known as labour holiday. An employee, irrespective of his length of service, is entitled to 13 statutory holidays.

SWOT is a business model proposed in the 1980s by Heinz Weihrich, and suitable for corporate strategy formulation and competitor analysis.

360 degree feedback, also referred to as the 360-degree reviews or 360 degree assessment, are a powerful tool for evaluating employee performance by garnering feedback from everyone who regularly deals with the employee. Typically, a 360 degree evaluator not only includes the supervisor, but also with colleagues and even subordinates who evaluate an employee’s performance according to certain criteria.

Termination is “permanent termination of employment relationship" or "termination of labour contract relationship".

A time clock machine, or punch clock, work sign-in machine, and attendance machine, is a traditional attendance record method used to record employees' commuting time.

The timesheet is a form of employee working hours record, which mainly shows the working hours and provides information to calculate payroll.

During work injury sick leave, the employer must pay the employee four-fifths of his normal wages as regular payments.

Working day refers to the length of time (hours) that employees work in a day and is the working time in a daily unit.