What does a "License" mean?

A given number of licenses is the number of active users a company may have at any given time. For example, a company having 'N' number of licenses is supposed to have N active employees at any particular time.

In order to use your licenses efficiently, you can set the status of an employee who has left the company to "disable", thus releasing the extra license for someone else. All of the information of the old employee will still remain intact, but you will be prevented from performing any further reviews for this employee which is only logical since he/she has left your organization.