Furlough

Furlough: A furlough is a temporary leave of absence from work, often mandated by the employer. This can occur for various reasons, including Budget cuts, government mandates, or organizational restructuring. During a furlough, employees may not be paid, but they usually retain their job status and are expected to return once the furlough period ends.

Examples:

• A company facing financial difficulties may implement a furlough for all employees, requiring them to take unpaid leave for a week.
• During a government shutdown, federal employees may be furloughed until the Budget is resolved, meaning they will not work and will not receive pay during that time.

Cases:

• In 2020, many businesses in the hospitality sector furloughed employees due to COVID-19 restrictions, with plans to rEINstate them once the situation improved.
• A school district may furlough teachers during the summer months to save on payroll expenses, with the expectation that they will return for the next academic year.