what is furlough

A furlough is a temporary leave of absence, a reduction in hours, or a pay cut, during which the employee retains their job but does not receive pay. It is often used as a cost-saving measure by employers during periods of reduced work or budget constraints. The key characteristics of a furlough include its temporary nature and the expectation that employees will return to work or have their hours and pay restored. Unlike a layoff, employees on furlough typically retain their benefits, and the employer can call them back to work when needed. Furloughs are distinct from layoffs, which involve the permanent termination of employment. Employers may choose furloughs over layoffs to retain skilled workers and avoid the costs of hiring and training new employees. Furloughs are also used in the military for service members who are allowed to leave their station post for a preset time