Compensation System
/ˌkɒmpənˈseɪʃən ˈsɪstəm/
Definitions
- (n.) A structured legal framework or arrangement through which individuals receive monetary or other benefits in exchange for services, damages, or losses.
The employee received compensation according to the company's compensation system.
- (n.) The legally defined mechanism for providing remuneration or damages under contract, tort, or statutory law.
The worker's injury entitled her to benefits under the state compensation system.
Forms
- compensation system
- compensation systems
Related terms
See also
Commentary
Typically used in employment and personal injury law; clarity on whether the term refers to remuneration or to damages context improves drafting precision.
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.