What is Furlough?

A furlough is a temporary, unpaid leave of absence from work that is typically mandated by an employer. During a furlough, employees are still technically employed, but are required to take time off without pay. The purpose of a furlough is often to reduce costs during a temporary downturn or crisis, such as during an economic recession or a natural disaster.

During a furlough, employees may be required to take a certain amount of time off, such as a week or a month, or they may be required to take off a certain number of days per week. In some cases, employees may be able to use paid vacation or sick time during a furlough to receive some compensation.

Unlike layoffs, which are typically permanent and involve the termination of employment, furloughs are temporary and employees are expected to return to work when the furlough period is over. Furloughed employees may be able to continue receiving benefits such as health insurance, but this can vary depending on the specific company policies and the duration of the furlough.

Overall, furloughs are a way for companies to reduce costs and retain their workforce during difficult times, while also minimizing the impact on employees by providing the opportunity to return to work once the furlough period is over.