Compensation definition: Copy, customize, and use instantly
Introduction
The term "Compensation" refers to the payment or remuneration given to an employee, contractor, or partner for their services or work. It is essential for clarifying the agreed-upon financial terms and ensuring both parties are aligned on payment arrangements in a contract.
Below are various examples of how "Compensation" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Compensation" as a salary
This definition ties "Compensation" to the regular salary paid for services rendered.
"Compensation" means the fixed salary or wage paid to the employee on a monthly or bi-weekly basis as agreed upon in the employment contract.
Definition of "Compensation" as performance-based pay
This definition connects "Compensation" to pay based on performance outcomes.
"Compensation" refers to the total monetary payment, including bonuses, commissions, and incentives, based on the employee's performance and achievement of specific goals.
Definition of "Compensation" as benefits package
This definition links "Compensation" to additional non-monetary perks and benefits provided to employees.
"Compensation" means the overall benefits package, including health insurance, retirement contributions, paid time off, and other perks provided to the employee as part of their employment agreement.
Definition of "Compensation" as hourly wages
This definition applies "Compensation" to payment based on the number of hours worked.
"Compensation" refers to the hourly wage paid to the employee for each hour of work performed, as agreed upon in the employment contract.
Definition of "Compensation" as a total remuneration
This definition ties "Compensation" to the full value of payments and benefits provided to an individual.
"Compensation" means the total remuneration package, including salary, bonuses, benefits, stock options, and any other form of financial or non-financial remuneration provided to the employee.
Definition of "Compensation" as severance pay
This definition connects "Compensation" to payment given upon termination of employment.
"Compensation" refers to the severance pay provided to the employee upon the termination of their employment, as outlined in the severance agreement.
Definition of "Compensation" as equity compensation
This definition links "Compensation" to the granting of stock options or equity shares.
"Compensation" means equity compensation, including stock options, restricted stock units, or shares, granted to the employee as part of their compensation package.
Definition of "Compensation" as a contract fee
This definition applies "Compensation" to the fee agreed upon for contracted services.
"Compensation" refers to the fee paid to the contractor or freelancer for the completion of the project or services as per the terms of the contract.
Definition of "Compensation" as overtime pay
This definition ties "Compensation" to additional pay for work performed beyond standard hours.
"Compensation" means the additional overtime pay provided to the employee for work performed in excess of their standard working hours, calculated at a specified rate.
Definition of "Compensation" as a signing bonus
This definition connects "Compensation" to an upfront payment upon hiring.
"Compensation" refers to the signing bonus offered to the employee at the time of hiring as an incentive for joining the Company, in addition to their regular salary.
Definition of "Compensation" as tax reimbursement
This definition links "Compensation" to the reimbursement of taxes paid by the employee.
"Compensation" means the reimbursement of taxes or other governmental fees paid by the employee during their employment, to be paid by the employer.
Definition of "Compensation" as relocation allowance
This definition applies "Compensation" to funds provided for moving expenses.
"Compensation" refers to the relocation allowance provided to the employee to cover the costs of moving for the position, including travel, housing, and other related expenses.
Definition of "Compensation" as profit-sharing
This definition ties "Compensation" to a system where employees share in the company’s profits.
"Compensation" refers to profit-sharing, where a portion of the Company's profits is distributed to employees based on performance or tenure.
Definition of "Compensation" as a retention bonus
This definition connects "Compensation" to a bonus paid for staying with the company for a certain period.
"Compensation" means the retention bonus provided to employees as an incentive to remain with the Company for a specified period, often paid in installments.
Definition of "Compensation" as merit-based increases
This definition links "Compensation" to pay raises based on performance.
"Compensation" refers to salary increases or bonuses awarded to employees based on merit, performance reviews, or contributions to the Company.
Definition of "Compensation" as a reimbursement for business expenses
This definition applies "Compensation" to covering out-of-pocket expenses incurred by employees.
"Compensation" means the reimbursement of expenses incurred by the employee during the course of their duties, such as travel, lodging, and supplies, in accordance with Company policy.
Definition of "Compensation" as disability payments
This definition ties "Compensation" to financial support for employees unable to work due to disability.
"Compensation" refers to the disability payments provided to the employee in case of illness or injury that prevents them from performing their regular job functions.
Definition of "Compensation" as royalties or licensing fees
This definition connects "Compensation" to payments for intellectual property rights.
"Compensation" means royalties or licensing fees paid to the employee for the use of intellectual property, patents, or trademarks developed during their employment.
Definition of "Compensation" as a commission structure
This definition links "Compensation" to commissions based on sales or performance.
"Compensation" refers to the commission structure, where employees earn a percentage of sales or revenue they generate, in addition to their base salary.
Definition of "Compensation" as educational reimbursements
This definition applies "Compensation" to financial support for education or training.
"Compensation" means the reimbursement or payment for education or training expenses, including tuition, books, and fees, to support the employee's professional development.
Definition of "Compensation" as a commission-based salary
This definition ties "Compensation" to a salary structure reliant on commissions.
"Compensation" refers to a salary structure that includes a base salary plus commissions or bonuses based on sales targets or performance goals.
Definition of "Compensation" as a guaranteed minimum
This definition connects "Compensation" to a minimum guaranteed pay level.
"Compensation" means the guaranteed minimum salary or wage provided to the employee, regardless of performance or other factors, ensuring baseline financial support.
Definition of "Compensation" as hazard pay
This definition links "Compensation" to additional pay for employees in hazardous conditions.
"Compensation" refers to hazard pay provided to employees working in dangerous or risky environments, offering additional financial incentives for the work performed.
Definition of "Compensation" as a base salary
This definition ties "Compensation" to the fixed regular payment for services rendered.
"Compensation" means the base salary or wage provided to the employee, paid on a regular basis (e.g., weekly, bi-weekly, or monthly).
Definition of "Compensation" as an incentive payment
This definition connects "Compensation" to additional pay based on specific achievements or goals.
"Compensation" refers to incentive payments or bonuses awarded based on performance metrics, targets, or company success.
Definition of "Compensation" as a commission-based structure
This definition links "Compensation" to payments based on sales or business results.
"Compensation" means the total remuneration earned by the employee, including base salary and commissions calculated based on sales or other performance criteria.
Definition of "Compensation" as benefits and allowances
This definition applies "Compensation" to additional non-salary perks and allowances.
"Compensation" refers to the full benefits package, including health insurance, retirement contributions, travel allowances, and other perks provided to the employee.
Definition of "Compensation" as a signing bonus
This definition ties "Compensation" to an upfront payment to incentivize joining the company.
"Compensation" means the signing bonus paid to the employee as an inducement for accepting the employment offer, in addition to their base salary.
Definition of "Compensation" as a profit-sharing scheme
This definition connects "Compensation" to a share of the company's profits.
"Compensation" refers to the profit-sharing arrangement where the employee receives a share of the company’s profits based on their role, performance, or tenure.
Definition of "Compensation" as overtime pay
This definition links "Compensation" to additional payment for hours worked beyond the standard work schedule.
"Compensation" means overtime pay at a specified rate for hours worked beyond the employee's normal work schedule, in accordance with labor laws.
Definition of "Compensation" as equity compensation
This definition applies "Compensation" to stock options or ownership shares provided as part of the pay package.
"Compensation" refers to equity compensation, including stock options, grants, or restricted shares provided to the employee as part of their remuneration.
Definition of "Compensation" as a royalty payment
This definition ties "Compensation" to payments for the use of intellectual property.
"Compensation" means royalty payments made to the employee for the use or licensing of intellectual property, including patents, trademarks, and copyrights.
Definition of "Compensation" as severance pay
This definition connects "Compensation" to the payment made when an employee is terminated.
"Compensation" refers to severance pay provided to an employee in the event of involuntary termination or separation, based on the terms of their employment contract.
Definition of "Compensation" as disability compensation
This definition links "Compensation" to financial support for employees unable to work due to illness or injury.
"Compensation" means disability compensation provided to an employee who is temporarily or permanently unable to work due to a medical condition, as per company policy.
Definition of "Compensation" as relocation assistance
This definition applies "Compensation" to financial support for an employee’s relocation.
"Compensation" refers to the relocation assistance provided to an employee for moving expenses, including travel, housing, and logistics, in connection with an assignment or promotion.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.