Which term refers to financial compensation for loss suffered due to unfair dismissal?

Compensation is the correct term for financial recompense given to an employee who has experienced loss due to unfair dismissal. When an employee is unfairly dismissed, they may face financial hardship due to loss of income and other potential consequences such as damage to their reputation in the workforce. Therefore, compensation serves to provide financial relief to the employee to address these losses and help them recover from the situation.

This term encompasses various forms of payouts, including severance pay and any related financial losses the employee may have incurred. It is a crucial aspect of employment law, emphasizing that employees who face unfair treatment are entitled to some form of monetary redress.

In contrast, re-engagement refers to the reinstatement of an employee in their previous job, while reinstatement means placing the employee back in their original position. Constructive dismissal, on the other hand, occurs when an employee resigns due to the employer's behavior effectively forcing them to leave, and it doesn't specifically relate to financial compensation for loss suffered due to dismissal.