Restitution vs. Compensation: What's the Difference?
Edited by Aimie Carlson || By Janet White || Published on November 20, 2023
Restitution involves restoring or returning something lost or stolen to its rightful owner, while Compensation is payment given for service, loss, or suffering.
Key Differences
Restitution and Compensation, although often used interchangeably, have distinct meanings. Restitution pertains to the act of returning something that was lost, stolen, or wrongfully taken. It's about making things right by restoring them to their original state or to their rightful owner. Compensation, conversely, is about providing something, typically money, in exchange for something else, such as services rendered, loss, or damages.
In legal contexts, Restitution may be ordered when a party has been unjustly enriched at another's expense. This order is meant to nullify any benefits received unlawfully or unfairly, ensuring that no party gains an advantage from unjust actions. Compensation, on the other hand, is often seen in employment contexts, referring to wages, salaries, or benefits provided in return for work or services. It can also be awarded in legal judgments for pain, suffering, or losses endured.
Restitution aims to bring back a situation to its original state. For example, if someone's property is damaged, Restitution might involve repairing or replacing the item. Compensation, however, may not necessarily restore the original state but provides a form of recompense, usually monetary, for the loss or damage. For instance, if a person is injured at work, they might receive Compensation for medical bills or lost wages.
Often, in cases of wrongdoing or injury, both Restitution and Compensation may come into play. An individual might be ordered to return stolen goods (Restitution) and also pay for any damages or losses that occurred due to the theft (Compensation). While both concepts focus on redress, their application and implications vary based on context and intention.
Comparison Chart
Nature
Returning or restoring
Payment for service, loss, or suffering
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Context
Often used in cases of theft or wrongful possession
Common in employment and legal judgments
Purpose
Restore original state or rightful ownership
Provide recompense or remuneration
Form
Can be in the form of goods, services, or money
Typically monetary
Outcome
Aims to nullify unjust enrichment
Aims to balance out a loss or provide wages for service
Restitution and Compensation Definitions
Restitution
The act of returning something stolen or lost to its rightful owner.
The thief was ordered to make Restitution for the stolen goods.
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Compensation
Reimbursement for a loss, damage, or injury.
She received Compensation for her medical bills.
Restitution
Restoring or compensating for a loss.
The museum sought Restitution for the damaged artifact.
Compensation
A reward or recompense for a service.
As Compensation, they offered her a premium seat.
Restitution
Reinstating something to its original condition.
The company made Restitution by cleaning the oil spill.
Compensation
Payment provided in return for services or work.
His Compensation for the project was generous.
Restitution
A means to rectify a wrongdoing.
Restitution was made by planting new trees after the forest fire.
Compensation
Something given to offset a deficiency or balance out an unfavorable situation.
The firm offered free products as Compensation for the delay.
Restitution
The act of restoring to the rightful owner something that has been taken away, lost, or surrendered.
Compensation
The act of compensating or the state of being compensated.
Restitution
The act of making good or compensating for loss, damage, or injury; indemnification.
Compensation
Something, such as money, given or received as payment or reparation, as for a service or loss.
Restitution
A return to or restoration of a previous state or position.
Compensation
(Biology) The increase in size or activity of one part of an organism or organ that makes up for the loss or dysfunction of another.
Restitution
(legal) A process of compensation for losses.
Compensation
(Psychology) The act of consciously or unconsciously changing one's behavior to offset a real or imagined deficiency, as in personality or physical ability.
Restitution
The act of making good or compensating for loss or injury.
Compensation
The act or principle of compensating.
Restitution
A return or restoration to a previous condition or position.
The restitution of an elastic body
Compensation
Something which is regarded as an equivalent; something which compensates for loss.
Restitution
That which is offered or given in return for what has been lost, injured, or destroyed; compensation.
Compensation
(finance) The extinction of debts of which two persons are reciprocally debtors by the credits of which they are reciprocally creditors; the payment of a debt by a credit of equal amount.
Restitution
(medicine) The movement of rotation which usually occurs in childbirth after the head has been delivered, and which causes the latter to point towards the side to which it was directed at the beginning of labour.
Compensation
A recompense or reward for service.
Restitution
The act of restoring anything to its rightful owner, or of making good, or of giving an equivalent for any loss, damage, or injury; indemnification.
A restitution of ancient rights unto the crown.
He restitution to the value makes.
Compensation
(real estate) An equivalent stipulated for in contracts for the sale of real estate, in which it is customary to provide that errors in description, etc., shall not avoid, but shall be the subject of compensation.
Restitution
That which is offered or given in return for what has been lost, injured, or destroved; compensation.
Compensation
The relationship between air temperature outside a building and a calculated target temperature for provision of air or water to contained rooms or spaces for the purpose of efficient heating. In building control systems, the compensation curve is defined to a compensator for this purpose.
Restitution
The act of returning to, or recovering, a former state; as, the restitution of an elastic body.
Compensation
(neuroscience) The ability of one part of the brain to overfunction in order to take over the function of a damaged part (e.g. following a stroke).
Restitution
The movement of rotetion which usually occurs in childbirth after the head has been delivered, and which causes the latter to point towards the side to which it was directed at the beginning of labor.
Compensation
The act or principle of compensating.
Restitution
A sum of money paid in compensation for loss or injury
Compensation
That which constitutes, or is regarded as, an equivalent; that which makes good the lack or variation of something else; that which compensates for loss or privation; amends; remuneration; recompense.
The parliament which dissolved the monastic foundations . . . vouchsafed not a word toward securing the slightest compensation to the dispossessed owners.
No pecuniary compensation can possibly reward them.
Restitution
The act of restoring something to its original state
Compensation
The extinction of debts of which two persons are reciprocally debtors by the credits of which they are reciprocally creditors; the payment of a debt by a credit of equal amount; a set-off.
Restitution
Getting something back again;
Upon the restitution of the book to its rightful owner the child was given a tongue lashing
Compensation
Something (such as money) given or received as payment or reparation (as for a service or loss or injury)
Restitution
A legal action causing one party to disgorge benefits obtained from another.
The court demanded Restitution for the profits unlawfully earned.
Compensation
(psychiatry) a defense mechanism that conceals your undesirable shortcomings by exaggerating desirable behaviors
Compensation
The act of compensating for service or loss or injury
Compensation
Monetary benefits provided to an employee.
The package included health benefits and other forms of Compensation.
FAQs
Can a court order both Restitution and Compensation?
Yes, a court might require Restitution for returned goods and Compensation for related damages.
How does Restitution differ from Compensation?
Restitution returns something to its original state or owner, while Compensation provides payment for loss or service.
Can Restitution involve repairing damaged items?
Yes, restoring an item to its original state can be a form of Restitution.
Is worker's Compensation the same as a salary?
No, worker's Compensation specifically covers injuries at work, while a salary is regular pay.
Why might a company offer Compensation?
Companies might offer Compensation for services, losses, damages, or to maintain goodwill.
How does Compensation relate to job benefits?
Job benefits, like health insurance, are forms of Compensation for employment.
Is Restitution always monetary?
No, Restitution can involve returning goods or services, not just money.
What's a common context for Compensation?
Employment, where Compensation includes wages, benefits, and bonuses.
Can Restitution be symbolic in nature?
Yes, sometimes Restitution is a symbolic act to acknowledge wrongdoing.
What's an example of non-monetary Compensation?
Paid vacation, health benefits, or company shares.
Can Restitution involve non-material aspects?
Yes, Restitution might include apologies or other acts to rectify a situation.
Who typically decides on the amount of Restitution?
Courts or legal agreements often determine Restitution amounts.
Why is Restitution important in legal contexts?
It ensures no party benefits from wrongdoing and restores equity.
Are bonuses a form of Compensation?
Yes, bonuses are additional Compensation provided for performance or other criteria.
How is Compensation determined in personal injury cases?
It considers medical bills, lost wages, pain, and suffering.
Is Restitution always ordered by a court?
No, parties might agree on Restitution outside of court settlements.
Why do businesses provide Compensation to employees?
To remunerate them for their services and incentivize performance.
Can Compensation be non-monetary?
Yes, Compensation can be in the form of benefits, stock options, or other non-cash rewards.
Can Restitution be more than the original value?
Typically, Restitution restores the original value, but added damages might require more.
Is there a moral aspect to Restitution?
Often, yes. Restitution can be seen as morally righting a wrong.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Aimie CarlsonAimie Carlson, holding a master's degree in English literature, is a fervent English language enthusiast. She lends her writing talents to Difference Wiki, a prominent website that specializes in comparisons, offering readers insightful analyses that both captivate and inform.
