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compensation legal definition

noun

  1. Payment for work done.
  2. Payment for injury, loss, or otherwise depriving a person of something he or she is entitled to. See also damages.
deferred compensation
  1. Payment at some agreed time in the future for work already done.
  2. 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 employeeÂ’s tax liability for the payment.
just compensation
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.

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