What Is A Furlough?
A furlough is a leave of absence that is mandatory and temporary, imposed by an employer, and in most cases it is unpaid, although the employee remains on the company books. It is frequently employed when it comes to financial restraints or decreased operations where the organizations can cut down on the payroll but not necessarily fire the employees.
When workers are on furlough, they still enjoy certain benefits such as health insurance and can resume as soon as business situations are better. Furloughs are currently popular in government, hospitality, retail, and seasonal sectors.
Examples:
To deal with the decreased demand, the company declared a three-month furlough.
Furloughed employees were still entitled to receive health benefits.
Furloughs are another way of organizations saving money by retaining the necessary talent.
Synonyms:
- Temporary Leave
- Unpaid Leave Mandate
- Workforce Furlough
- Enforced Leave
- Mandatory Leave of Absence
