Retrenchment Benefit Insurance: A Financial Lifeline in Times of Job Loss
Retrenchment benefit insurance is a form of insurance that provides financial protection to employees who lose their jobs due to downsizing, restructuring, or other economic factors. For instance, a manufacturing company facing financial difficulties may be forced to lay off a significant portion of its workforce. In such a scenario, employees covered by retrenchment benefit insurance would receive a lump sum payment or regular income to help them cope with the immediate financial impact of job loss.