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compensation
/ˌkɒmpənˈseɪʃən/
payment or reward for work or loss
The company offered compensation for the overtime hours.
The company provided payment to employees for working extra hours.
Business
general
Money or benefits given to someone in return for work or services rendered.
She received compensation for her consulting services.
She was paid for her consulting work.
Often includes salary, bonuses, or other benefits.
Law
legal
Financial or other reparation given to someone who has suffered loss or injury.
The court awarded compensation to the victim for medical expenses.
The victim was given money to cover medical costs.
Common in personal injury or employment law cases.
Finance
Finance
A form of payment or benefit given to employees as part of their employment contract.
The compensation package included stock options and a signing bonus.
The employee's payment included shares and an extra payment for joining.
May include salary, bonuses, benefits, and other perks.
Collocations
compensation packagea set of payments and benefits given to an employeecompensation claima request for payment due to loss or injurycompensation funda pool of money set aside for payments to victims
Related Phrases
Pro Tip
Legal vs. Business Use
In legal contexts, compensation often refers to payments for harm, while in business, it refers to employee payments.
Gold Rule
Context Matters
Always consider the context when using 'compensation'—it can mean different things in legal, business, or general settings.
Word Origin
From Latin 'compensatio', meaning 'a balancing or making up for', from 'compensare' (to balance).
Usage Notes
In legal contexts, compensation often refers to financial reparation for harm. In business, it refers to employee payments.
Word Breakdown
com-
together
prefix-pens-
to weigh
root-ation
the act of
suffixEnglish Dictionary