Work Terms, Explained (A–Z)

A fast glossary for the words you'll see in job posts, HR docs, and Slack. Bookmark this page and search as needed.

Work Terms Visual
Employment Types & Status
At-Will Employment (U.S.):

Employment can be ended by either party at any time for lawful reasons.

Contract/1099 (U.S.):

You're an independent contractor, not an employee; taxes/benefits differ.

W-2 (U.S.):

Tax form for employees with wages withheld by employer.

FTE (Full-Time Equivalent):

Headcount measure; 1.0 FTE ≈ full-time hours.

Exempt vs. Non-Exempt (U.S.):

Exempt roles typically don't earn overtime; non-exempt usually do.

Conversion (Intern/Temp-to-Perm):

Moving from temporary to permanent employee status.

Internship (Paid/Unpaid):

Short-term role to learn and contribute; paid is standard in many fields.

Compensation & Pay
Bonus (Annual/Discretionary/Sign-On):

Extra pay, tied to performance, company results, or offered to join.

Equity/Stock Options/RSUs:

Ownership in the company as part of pay; vesting means it unlocks over time.

Total Compensation:

Base pay + bonus + equity + benefits + perks.

Overtime:

Extra pay for hours above a threshold (varies by law and employer).

Shift Differential:

Extra pay for nights/weekends/holidays.

Stipend:

Fixed cash for a purpose (e.g., WFH set up, learning budget).

Relocation Assistance:

Help with moving for a job.

Work Terms Visual
Work Terms Visual
Benefits & Insurance
Benefits Eligibility:

When you qualify for benefits (e.g., after 30 days of employment).

HSA/FSA (U.S.):

Pre-tax accounts for medical (and sometimes dependent care) expenses.

COBRA (U.S.):

Lets you pay to continue health insurance after leaving a job for a limited time.

Commuter Benefits:

Pre-tax funds for transit/parking.

PTO (Paid Time Off):

Bank of paid days for vacation/personal time.

Work Arrangements & Culture
Work Style (Remote/Hybrid/In-Person):

Where and how your work happens.

Hybrid:

Mix of on-site and remote work.

On-Call:

You're available to work if needed outside regular hours; may include extra pay.

Onboarding:

Ramp-up period with training and setup.

Probationary Period:

Early period where performance and policies are evaluated.

Job Family/Level:

The track (e.g., Marketing) and the seniority band (e.g., L1/Associate).

Work Terms Visual
Work Terms Visual
Legal & Policies
Non-Compete:

Limits where you can work after leaving; legality varies by location.

NDA (Non-Disclosure Agreement):

You agree not to share confidential info.

PIP (Performance Improvement Plan):

Formal plan to address performance gaps.

Tip: Terms and rules vary by country and state/province. Always check the employer's policy and local laws.