HR Glossary
Comprehensive HR and Payroll Terms for UAE Businesses
A
Absenteeism
The habitual absence of an employee from work, often without valid reason, impacting productivity and workforce management.
Advance Payment
A payment made to an employee before their scheduled payday, often deducted from future wages.
Allowances
Monetary benefits provided to employees in addition to their base salary, such as housing, transport, or education allowances.
Annual Leave
Paid time off work granted to employees, typically calculated based on service duration.
Arrears
Unpaid or overdue salary or wages owed to an employee.
Attendance Machine
A device used to record employee attendance through methods like biometric scanning or swipe cards.
Attendance Management
The process of tracking employee working hours, absences, and punctuality.
Attendance Report
A document summarising employee attendance data over a specific period.
B
Base Salary
The fixed portion of an employee’s earnings, excluding bonuses or allowances.
Benefits
Non-salary compensation provided to employees, such as health insurance, bonuses, or retirement plans.
Biometric Attendance
A system using biometric data (e.g., fingerprints) to track employee attendance.
C
Compassionate Leave
Leave granted to an employee to cope with personal emergencies or the death of a loved one.
Compensation
Total payment to an employee, including salary, bonuses, and other benefits.
Compliance
Adherence to laws, regulations, and policies governing employment.
Contract Employee
An individual hired for a specific period or project under a fixed-term contract.
D
Deduction
Amount subtracted from an employee’s salary, including taxes, insurance, or fines.
Disciplinary Action
Measures taken by an employer to address employee misconduct.
E
Employee Allowances
Additional monetary benefits provided to employees, such as housing, transportation, or travel allowances.
Employee Appraisal
The evaluation of an employee’s performance to determine compensation, promotions, or development needs.
Employee Assets Management
Tracking and managing company assets assigned to employees, such as laptops, phones, or vehicles.
Employee Benefits
Non-salary perks provided to employees, such as healthcare, bonuses, or retirement plans.
Employee Clock In/Clock Out
Recording the time an employee starts and finishes their workday.
Employee Database
A central repository of employee information, including personal details, job roles, and employment history.
Employee Directory
A searchable list of employee details, including names, contact information, and job titles.
Employee Geolocation Time-Tracking
Monitoring employee work hours and locations using GPS technology.
Employee Handbook
A document outlining company policies, procedures, and expectations for employees.
Employee Leaves
Days off work granted to employees, including annual leave, sick leave, and unpaid leave.
Employee Management
The administration of employee-related processes, including hiring, training, and performance evaluation.
Employee Shift Management
Scheduling and tracking employee work shifts to ensure operational efficiency.
Employee Time and Attendance Tracking
Monitoring and recording employee working hours and attendance patterns.
Employee Timesheets
Documents tracking the hours an employee has worked over a specific period.
End-of-Service Benefits (EOSB)
Payments made to employees upon termination of employment, as per UAE labor law.
Expatriate Employee
A foreign national working in a country other than their own.
G
Gratuity
A lump-sum payment made to employees upon completing service, governed by UAE labor law.
Gross Salary
Total employee earnings before any deductions.
H
HR Compliance
Ensuring that all HR processes align with labour laws and organisational policies.
HRIS (Human Resource Information System)
Software to manage HR activities like recruitment, payroll, and attendance.
HR Letters
Official documents issued by HR, such as offer letters, experience letters, and NOCs.
Hybrid Work Model
A flexible work arrangement combining remote and in-office work.
J
Job Description (JD)
A written document outlining the roles, responsibilities, and qualifications for a position.
Job Evaluation
A systematic process to determine the value of a job in relation to others within an organisation.
K
Key Performance Indicators (KPIs)
Measurable metrics used to evaluate an employee’s performance against objectives.
L
Labour Contract
A legal agreement between an employer and employee specifying job terms.
Leave Management
Tracking and managing employee leave requests and balances.
Loans Management
Handling employee loan requests, repayments, and balances.
M
Minimum Wage
The lowest remuneration an employer is legally allowed to pay an employee.
MOHRE
Ministry of Human Resources and Emiratisation, the UAE authority overseeing labor law compliance.
N
Net Salary
The amount an employee receives after deductions like taxes or loans.
Non-Disclosure Agreement (NDA)
A legal contract protecting confidential information shared between parties.
NOC (No Objection Certificate)
A document issued by an employer allowing an employee to pursue certain actions, like visa processing.
O
Offboarding
The structured process of managing an employee’s exit from an organisation, including final settlements, handovers, and exit interviews.
Onboarding
The process of integrating a new employee into an organisation.
Overtime
Hours worked beyond an employee’s contractual obligations, often paid at a higher rate.
P
Payroll
The process of calculating and distributing employee salaries, taxes, and benefits.
Payroll Cycle
The recurring period (e.g., weekly, bi-weekly, monthly) during which employee salaries are calculated and processed.
Payroll Processing
The administration of employee wages, including calculations, deductions, and distributions.
Payroll Software
A digital solution for automating salary calculations, tax compliance, and reporting.
Performance Management
Ongoing assessment and feedback to improve employee performance.
Probation Period
An initial trial period for new employees to evaluate their suitability for the role.
R
Reimbursement
Repayment made to employees for work-related expenses.
Remote Work
A work arrangement allowing employees to perform their duties outside the office.
Retention Strategy
Plans and initiatives to retain talented employees and reduce turnover rates.
S
Sabbatical Leave
A long-term leave granted to employees for personal development or rest.
Salary Calculation
The process of determining employee pay based on hours worked, benefits, and deductions.
Salary Slip
A document detailing an employee’s salary components and deductions for a specific period.
Shift Work
A work schedule where employees perform duties in different shifts, often in a 24-hour cycle.
SIF File
Salary Information File required for WPS-compliant salary transfers in the UAE.
T
Taxable Income
The portion of an employee’s income that is subject to tax deductions.
Termination
The formal conclusion of an employee’s contract with the organization, which can occur due to resignation (voluntary exit), dismissal (termination for cause, misconduct, or performance issues), or redundancy (elimination of the role due to restructuring or downsizing). Proper termination processes include notice periods, end-of-service settlements, and legal compliance to avoid disputes.
Timesheet
A record of an employee’s working hours during a specified period.
Training and Development
Organised activities aimed at enhancing employee skills and career growth
W
Wage Protection System (WPS)
A UAE government-mandated system designed to ensure timely and accurate salary payments to employees through approved financial institutions. It helps businesses comply with UAE labour laws, improve transparency, and prevent salary disputes.
Workplace Safety
Policies and practices to ensure a safe working environment.