Remote Work Glossary: Key Terms Explained

Remote job listings and contracts use a lot of jargon. This glossary explains the most common terms in plain language. It is general information, not legal or tax advice.

Working arrangements

Remote

Work done away from a company office, usually from home.

Remote-first

A company whose default is remote work. Processes are designed for people working apart, and no one is expected to be in an office.

Remote-friendly or remote-allowed

A company with offices that allows some roles to be done remotely. Practices may be less developed than at remote-first companies.

Hybrid

A mix of remote and in-office days.

Distributed team

A team whose members work in different places, sometimes many countries.

Work from anywhere

A policy that lets employees work from any location, usually within rules about legal and tax requirements. Read the details; it often has limits.

Digital nomad

Someone who works remotely while travelling or living in different places. Visa, tax and legal rules in each country still apply.

Communication

Asynchronous (async)

Communication that does not require an immediate reply, such as email, comments on documents or recorded updates. See asynchronous communication.

Synchronous (sync)

Live communication such as video calls and instant conversations.

Overlap hours

The part of the working day when team members in different time zones are all available.

Handoff

Notes passed to the next person or time zone describing what was done and what comes next.

Employment types

Employee

A person hired by a company, usually paid through payroll, with the employer handling tax withholding and, in many places, providing benefits and legal protections.

Contractor

A self-employed person who provides services under a contract and is typically responsible for their own taxes and benefits.

Freelancer

A self-employed worker who finds their own clients and projects.

W-2

In the United States, the tax form reported for employees.

1099

In the United States, a tax form commonly used to report payments to independent contractors.

Full-time equivalent (FTE)

A way of expressing workload where one full-time worker equals one FTE.

Probation period

An initial period of employment in which either side may end the arrangement more easily.

Notice period

The time you or the employer must give before ending the arrangement.

Hiring and payment

Employer of record (EOR)

A third-party company that legally employs a worker on behalf of another company, handling payroll, taxes and compliance in the worker's country. This lets a business hire in places where it has no legal presence.

Professional employer organisation (PEO)

A company that shares certain employment responsibilities with a business, such as payroll and benefits administration.

Contractor platform

A service that handles contracts and payments between businesses and independent contractors.

Invoice

A bill you send for work done, common for contractors.

Stipend

A fixed allowance for a specific purpose, such as a home-office or internet stipend.

Location-based pay

A policy of setting pay according to where the employee lives.

Equity

Ownership in a company, often offered as shares or options. Terms vary widely, so read them carefully.

Tools and processes

Applicant tracking system (ATS)

Software employers use to manage applications. See how an ATS reads your resume.

Knockout question

A screening question that can end an application if answered a certain way, such as required work authorisation.

Onboarding

The process of getting a new hire set up with accounts, equipment and information.

Standup

A short regular update, which may be live or written, where team members share progress and blockers.

Documentation

Written records of processes, decisions and knowledge, which are especially important in distributed teams.

Security

VPN

A virtual private network that creates a secure connection, often required to access work systems remotely.

Two-factor or multi-factor authentication

An extra step beyond a password to confirm your identity.

Scams

Overpayment or cheque scam

A fraud in which you receive a payment, are asked to send part of it onward, and later find the original payment was fake. See remote job scams.

Put it into practice

Browse live remote jobs, explore global remote roles, or see openings by field such as customer support, software development and AI & machine learning.

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