Compensation Plan
/ˌkɒmpənˈseɪʃən plæn/
Definitions
- (n.) A structured scheme or arrangement outlining how compensation is allocated, typically within employment or contractual relationships.
The company's compensation plan details the salary, bonuses, and benefits employees are entitled to.
- (n.) A formal document or policy specifying terms and conditions for payment, benefits, and incentives in a business or legal context.
The lawyer reviewed the compensation plan to ensure compliance with labor laws.
Forms
- compensation plan
- compensation plans
Related terms
See also
Commentary
Compensation plans must be clearly drafted to specify eligibility, calculation methods, and payment schedules to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.