To be furloughed from work means being placed on a temporary, unpaid leave of absence by an employer. During furlough, an employee retains their job and often their benefits, but they do not receive pay and are not required to work. The furlough is typically due to special circumstances such as economic downturns, reduced work demand, or organizational changes, and it implies the expectation that the employee will return to work once conditions improve. Unlike layoffs, furloughs do not sever the employment relationship permanently—they are temporary pauses rather than terminations.
Key Points about Furloughs
- Furlough is unpaid leave or a reduction in hours due to lack of work or budget constraints.
- Employees keep their jobs and benefits during furloughs but do not get paid.
- Employers use furloughs to reduce costs while avoiding permanent layoffs.
- The length of a furlough can vary from a few days to several months.
- Employees are expected to return to their positions and normal schedules after the furlough.
- Furloughs are different from layoffs; layoffs mean permanent job loss, whereas furloughs imply temporary work stoppage with a possibility of return.
Practical Effects for Employees
- No wages or salary during furlough, but employment status continues.
- Possible retention of benefits like health insurance.
- Ability to file for unemployment benefits during the furlough period in many regions.
- Employers may require no work during furlough; salaried employees generally cannot perform work without pay during furlough weeks.
In summary, being furloughed means a temporary unpaid break from work while keeping employment status, with the expectation of returning to work after the furlough period ends. This arrangement helps employers manage financial difficulties without permanently letting go of employees.
