A furlough is a temporary layoff, an involuntary leave, or another modification of normal working hours without pay for a specified duration. Businesses use furloughs for a variety of reasons, such as plant shutdowns, or when a broad reorganization makes it unclear which employees will be retained. For employers, one of the main advantages of furloughs over layoffs is that they can call back trained workers when conditions improve rather than hiring and training new employees. Furloughs may be short- or long-term, depending on the circumstances
The Difference Between Furloughs and Layoffs
Furloughs are temporary cessations of work when employees retain their jobs but do not get paid. During furloughs, employees keep their benefits and anticipate that they will return to work within a certain period of time. However, in layoffs, employees are permanently discharged and have no expectation of getting their employment back. For employers, one of the main advantages of furloughs over layoffs is that they can call back trained workers when conditions improve rather than hiring and training new employees.
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