Compensation Policy
/ˌkɒmpənˈseɪʃən ˈpɒlɪsi/
Definitions
- (n.) A formal written framework outlining the principles and guidelines by which an organization administers remuneration, benefits, and related financial incentives to employees or stakeholders.
The company's compensation policy ensures equitable distribution of bonuses among all eligible employees.
- (n.) A legal or regulatory framework governing how damages or financial restitution are calculated and awarded in claims or settlements.
The compensation policy stipulates the procedure for assessing payouts in workplace injury cases.
Forms
- compensation policy
- compensation policies
Related terms
See also
Commentary
A compensation policy must be clear to avoid disputes; drafters should define eligibility criteria and methods of calculation precisely.
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.