Definition of: compensation

(kom′pən·sā′shən) noun
1. The act of compensating, or that which compensates; payment; amends.
2. Mech. A means of counteracting variations, as of temperature; neutralizing opposing forces, as of magnetic attraction; or maintaining equilibrium.
3. Psychol. A form of behavior whereby an individual disguises or conceals an unpleasant sensation, feeling, or trait by giving prominence to one having desirable results.
4. Biol. The correction, by biological processes or medical means, of serious defects in the structure and functions of an organism or a human body.
—workmen's compensation
1. Damages recoverable from an employer by an employee in case of accident.
2. Government insurance against illness, accident, or unemployment.
—com′pen·sa′tion·al adjective