- The money a company pays to its employee to do work is an example ofcompensation.
- When a person gets into a car accident and injures someone, the money he pays to the injured victim for his losses is an example ofcompensation.
The definition of compensation is something of value given in exchange for something else.
- a compensating or being compensated
- anything given as an equivalent, or to make amends for a loss, damage, unemployment, etc.; recompense
- payment for services; esp., wages or remuneration
- Biol. the counterbalancing of a defect in the structure or function of a part by greater activity in or development of one or more other parts
- Psychol. a mechanism by which an individual seeks to make up for a real or imagined psychological defect by developing or exaggerating a psychological strength
Origin of compensationMiddle English compensacioun from Classical Latin compensatio
- The act of compensating or the state of being compensated.
- Something, such as money, given or received as payment or reparation, as for a service or loss.
- Biology The increase in size or activity of one part of an organism or organ that makes up for the loss or dysfunction of another.
- Psychology Behavior that develops either consciously or unconsciously to offset a real or imagined deficiency, as in personality or physical ability.
- The act or principle of compensating.
- That which constitutes, or is regarded as, an equivalent; that which makes good the lack or variation of something else; that which compensates for loss or privation; amends; remuneration; recompense.
- The extinction of debts of which two persons are reciprocally debtors by the credits of which they are reciprocally creditors; the payment of a debt by a credit of equal amount; a set-off.
- A recompense or reward for some loss or service.
- An equivalent stipulated for in contracts for the sale of real estate, in which it is customary to provide that errors in description, etc., shall not avoid, but shall be the subject of compensation.
- The relationship between air temperature outside a building and a calculated target temperature for provision of air or water to contained rooms or spaces for the purpose of efficient heating. In building control systems the compensation curve is defined to a compensator for this purpose.
From Old French compensacion, from Latin compensātiōnem, accusative singular of compensātiō.
compensation - Legal Definition
- Payment for work done.
- Payment for injury, loss, or otherwise depriving a person of something he or she is entitled to. See also damages.
- Payment at some agreed time in the future for work already done.
- Payment for work done paid in a tax year subsequent to when the payment is earned or paid in a manner, such as contributing to a qualified pension or profit-sharing plan, that postpones the employee’s tax liability for the payment.
The compensation to a property owner required by the Fifth Amendment to the United States Constitution whenever a state government or the federal government takes possession of private property by means of eminent domain for public use. Generally, the amount of compensation is the market value of the property at the time of the taking. See also eminent domain.