money paid to someone because they have suffered injury or loss, or because something they own has been damaged
compensation for injuries at work
She received compensation from the government for the damage caused to her property.
The jury awarded Tyler $1.7 million in compensation.
The workers were given 30 days' pay as compensation.
People who are wrongly arrested may be paid compensation.
The parents are seeking compensation for birth defects caused by the drug.
The court awarded Jamieson £30,000 compensation.
2 [uncountable and countable]
something that makes a bad situation better:
One of the few compensations of losing my job was seeing more of my family.
by way of compensation (=in order to make a situation better)
By way of compensation he offered to take her out for a meal.
3 [uncountable and countable]
when someone behaves in a particular way in order to replace something that is missing or to balance the bad effects of something
Linda's aggressiveness is just a compensation for her feelings of insecurity.
as compensation (for something)
Lip-reading can act as compensation for loss of hearing.
4 [uncountable] American English
the money someone is paid for doing their job