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Furlough
In the U.S. workforce, a furlough is a temporary, involuntary, and unpaid leave of absence for an employee. Unlike a layoff or termination, the company still employs the individual and the employee keeps their benefits but does not receive a paycheck. The employee is not allowed to do any work while on furlough.
What Small and Midsize Businesses Need to Know About Furlough
A furlough's temporary nature differs from that of layoffs, which involve the permanent dismissal of employees. Furloughs can be a practical approach for businesses that need to reduce staffing costs. However, employers need to navigate the process kindly and have a long-term strategy.
Related terms
- Absence Management
- Furlough
- Onboarding
- Attrition
- Right to Work
- Employee Self-Service (ESS)
- Background Check
- Equity Theory
- Performance Management
- Diversity and Inclusion (D&I)
- Gamification
- Center of Excellence (COE)
- Succession Planning and Management
- Workforce Analytics
- Performance Improvement Plan (PIP)
- Employee Resource Group (ERG)
- Chief Human Resources Officer (CHRO)
- 9-Box Model
- Enterprise Applications
- People Analytics
