The Foreign Worker Levy (FWL) is a monthly fee that employers in Singapore must pay when they hire foreign workers. It is designed to regulate the number of foreign employees and encourage companies to prioritize local hiring. The levy amount varies based on factors such as industry, worker skill level, and the employer’s dependency ratio.
A foreign subsidiary is a separate legal entity established by a parent company in another country. While the parent company owns a controlling stake, the subsidiary operates under the host country’s laws, tax rules, and business regulations. This structure allows companies to expand internationally while limiting liability and adapting to local markets.
A floating holiday is a flexible paid day off that employees can take outside of standard public holidays. Companies often provide them to accommodate personal needs, cultural or religious observances, or to give employees more control over their time off. Unlike fixed holidays, floating holidays allow greater flexibility and support work-life balance.
The Fair Work Act is the central piece of legislation governing workplace relations in Australia. It sets out the minimum employment standards, protections against unfair dismissal, rules for collective bargaining, and obligations for both employers and employees. The Act is enforced by the Fair Work Ombudsman and the Fair Work Commission to ensure fair and lawful workplace practices.
Exercising stock options is the process where an employee or investor purchases company shares at the predetermined strike price stated in their option agreement. If the market price is higher than the strike price, the option holder can gain equity value or sell shares for profit. Exercising can be done immediately or after meeting vesting conditions, depending on the plan.
An equity grant is a form of compensation where employees receive company shares or the right to purchase shares at a set price. Common types include stock options, restricted stock units (RSUs), and performance shares. Equity grants align employee interests with company growth and are often used to attract, retain, and motivate talent.
Employment Practices Liability Insurance (EPLI) is a type of coverage that helps employers defend against and cover costs from employee lawsuits. It typically protects businesses from claims of discrimination, harassment, retaliation, wrongful termination, or breach of employment contract. EPLI is especially valuable for small and mid-sized businesses that may not have in-house legal teams.
End of Month (EOM) refers to the last calendar day of a month, commonly used as a cutoff for business, payroll, or accounting activities. Many companies schedule salary payments, invoices, or financial reconciliations at EOM to maintain consistency. It serves as a standard reporting period for tracking performance, expenses, and compliance.
A Data Processing Agreement (DPA) is a legally binding contract between a data controller and a data processor. It defines how personal data is collected, processed, stored, and protected, ensuring compliance with privacy regulations like GDPR. DPAs set responsibilities for both parties and safeguard individuals’ rights when their data is handled by third parties.
A Document Management System (DMS) is a digital solution that helps businesses store, track, and manage documents in electronic format. It allows users to organize files, control access, share securely, and maintain version history. A DMS improves efficiency, reduces paper use, and ensures compliance with data security and record-keeping regulations.
Diluted shares represent the total number of a company’s shares that would be outstanding if all convertible securities, such as stock options, warrants, and convertible bonds, were exercised. They provide a more conservative view of earnings per share (EPS), since potential dilution lowers the value per share for existing shareholders. Investors use diluted share counts to assess the true impact of equity compensation and financing.
A debtor is an individual or organization that has borrowed money or received goods or services on credit and is obligated to repay the creditor. Debt may arise from loans, credit cards, or unpaid invoices. Debtors can be secured, where repayment is backed by collateral, or unsecured, relying solely on the borrower’s promise to pay.
A data protection policy is a formal document that explains how a company manages personal and sensitive information. It covers rules for collecting, storing, processing, and sharing data while ensuring compliance with privacy regulations like GDPR or HIPAA. Such policies help protect customer and employee data, reduce legal risks, and build trust.
A creditor is any individual, company, or financial institution that provides goods, services, or money to another party with the expectation of repayment. Creditors can be secured, backed by collateral, or unsecured, relying only on the borrower’s promise to repay. They play a key role in business operations and personal finance by enabling access to funds and resources.
The Canada Pension Plan (CPP) is a mandatory social insurance program that provides income support in retirement, as well as disability and survivor benefits. Both employees and employers contribute a percentage of wages to the plan, with contributions capped annually. CPP ensures workers have a stable income source after retirement or in case of unexpected life events.
Corporate immigration refers to the strategies and processes companies use to move employees across borders for work. It involves handling visas, work permits, residency applications, and compliance with local labor and immigration laws. Businesses use corporate immigration services to attract global talent, expand into new markets, and ensure smooth international assignments.
A corporate credit card is a payment card provided by a business to its employees for covering work-related expenses such as travel, client meetings, or office supplies. These cards help companies track spending, simplify reimbursements, and improve expense management. Depending on policy, the employer or employee may be responsible for repayment.
Business equity is the residual value of a company after subtracting all liabilities from its total assets. It represents the ownership interest that business owners or shareholders have in the company. Equity can grow through retained earnings or investments and is a key indicator of financial health and long-term value.
A Broker of Record (BOR) is an insurance professional or firm officially appointed by a client to represent them in dealings with insurance companies. The BOR manages policies, negotiates terms, and ensures the client gets proper coverage and service. Clients designate a BOR through a formal letter, which transfers responsibility from a previous broker to the new one.
A bank payment file is an electronic document that contains payment instructions a business submits to its bank. It typically includes details like account numbers, payment amounts, and transaction dates for multiple recipients. Companies use payment files to streamline bulk transactions such as payroll, vendor payments, or reimbursements, ensuring accuracy and efficiency.
