Compensation

Compensation refers to the reimbursement of damages, losses, or inconveniences provided to individuals or organizations in the form of monetary payments, benefits, material goods, or social support. It is applied across various areas, such as government aid, labor relations, insurance, or legal processes. The primary purpose of compensation is to restore fairness, redress harm, or provide additional support in challenging situations.

Compensation may include:

• In labor relations: payments for overtime work, hazardous conditions, or termination.
• In social security: benefits for loss of property, health, moral damages, or loss of a breadwinner.
• From the state: subsidies, benefits, payments to victims of emergencies, natural disasters, or economic changes.
• In insurance: coverage of costs caused by damage to property or health.
• In legal disputes: reimbursement for losses caused by rights violations or breach of contractual obligations.