Compensation vs. Recompensation — What's the Difference?

Compensation encompasses a broad range of payments, from salaries for employment to settlements for injuries or losses. It's a term widely used in both legal and employment contexts to denote any form of payment or benefit provided as an exchange for services rendered or for losses incurred. Recompensation, although less commonly used, specifically implies the act of compensating again or additionally, often suggesting a form of restoration or correction for inadequate or disputed initial compensation.

In the workplace, compensation includes wages, salaries, bonuses, and benefits, serving as remuneration for employees' work. It is an essential element of employment contracts and human resources management. Recompensation, on the other hand, might come into play if an employee were inadequately compensated for overtime or under a workers' compensation claim where the initial settlement did not cover all medical expenses or losses.

From a legal perspective, compensation can be awarded through settlements in lawsuits for a variety of reasons, including personal injury, breach of contract, or property damage. Recompensation could be sought or awarded when the original compensation amount was deemed insufficient upon further review, or if additional losses were discovered after the fact.

Financially, the concept of compensation often reflects a proactive and agreed-upon amount, such as a salary or a contractual settlement. Recompensation suggests a reactive measure, possibly indicating a need to address a shortfall or oversight in the original compensation package.

The emotional and psychological impact of compensation versus recompensation also differs. While compensation can provide a sense of justice, security, or reward, recompensation might carry with it an acknowledgment of a prior oversight or mistake, potentially leading to feelings of vindication or restitution.