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An employee can do the same if he loses his job so why should he get retrenchment benefits?
All your arguments are stacked against the hardworking and productive members of society while doling out money to the lazy and useless.
Interns for Oppo parties, please check this out:
http://siteresources.worldbank.org/...SP-Discussion-papers/Labor-Market-DP/1111.pdf
By the way, I simply googled "Retrenchment Benefits Rationale" and checked out the links that looked most promising. I most definitely have NOT read that World Bank Report which is 83 pages long! I simply glanced through and focused on the pages that looked most promising.

Now, Oppo parties' interns, roll up your sleeves and get to work before ultra right wing PAPzi LeongSam accuses you of being lazy bums.

Extract:
The historic overview of the prior Section and Annex 1 suggests the following features:
- Many severance pay disbursements occurred during large-scale industrial restructuring, with
provisions directly negotiated between firm and workers (trade unions) in an ad-hoc manner
and adjusted to the specific restructuring process. They often happened outside legislated
rules or collective agreements.
- There are various firm-based indications of how severance pay provisions together with
occupational pensions have been used early on in knowledge-intensive sectors to establish a
commitment technology both for employer and employee. The loss of an occupation
(defined benefit) pension for early leavers was balanced with severance pay commitments
and hence firing costs for the employer.
- Firm or industry-specific agreements still play a role in most countries above and beyond
legislated rules or collective agreements with little information about the terms of references.
In some countries, most prominently Germany, Japan and the US, they are the basis of
severance pay as a mandated scheme does not exist.
- Mandated severance pay provisions are a primitive form of social protection. They were
introduced in most but not all countries prior to other social protection mechanism, in
particular unemployment and retirement benefits.
- In developed economies severance pay was not abolished once related social security
benefits had been established. In most developing countries severance pay is still the key
provision for the formal labor force as access and eligibility to unemployment and retirement
benefits remain limited.
- In countries with limited formal sector employment, severance pay is often seen as a key
instrument for job protection. Severance pay together with long notice periods and firing
restrictions serve to protect workers in formal jobs from the main income loss in case of a
dismissal.
- The difference in coverage for unemployment and pension benefits between developed and
developing economies suggests that the rationale for severance pay, its design features, and
its interactions with related social benefits are different. This suggests a need to differentiate
conceptual frameworks between high and low income countries. Middle income countries
have characteristics for some group of workers closer to the first, for others closer to the low
income group.
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