Final answer:
Benefits paid to employees who are temporarily out of work for reasons that are not their fault are known as unemployment compensation. This is funded through unemployment insurance paid by employers. This category is distinct from workers' compensation, welfare benefits, and pension plans.
Step-by-step explanation:
Benefits paid to employees out of work through no fault of their own and who are available for suitable work if and when it becomes available falls under the category of unemployment compensation. Unemployment insurance is a program for which employers in every state contribute.
These funds are specifically set aside to provide financial assistance to workers who have lost their jobs and are currently looking for new work, typically for a period of up to six months.
It is important to distinguish between other types of benefits such as workers' compensation, which covers employees who suffer an injury on the job, and pension plans, which provides retirement income to employees and is guaranteed to some extent by the Pension Benefit Guarantee Corporation in case a company goes bankrupt.
Welfare benefits, on the other hand, are a broader category of social safety net programs that are not tied to one's employment status or history.