What are furloughs?
Furloughs are periods where employees are not working nor getting paid. Essentially, workers are placed on temporary unpaid leave until the business reopens. Often times, furloughed employees retain their “employed” status and continue to receive their benefits. Depending on the employer (and potential contract or union stipulations), employees may even be allowed to work for other businesses while on furlough from their primary employer.

What are layoffs?
Whereas furloughs are temporary arrangements, layoffs are permanent. Layoffs are mass firings of employees, sparked by a need to cut expenses to save an organization in crisis—not typically due to employee performance. Unlike furloughed employees, laid-off employees no longer have access to their employee benefits. However, they are typically entitled to unemployment assistance.

See the below article for considerations to keep in mind when determining whether a furlough or a layoff is the proper course of action.

Furloughs and Layoffs