Furlough Leave Meaning

Furlough Leave Definition:

Furlough leave refers to a temporary leave of absence from work, often without pay, mandated by the employer. Furloughs are usually implemented to reduce costs during economic downturns or financial crises while retaining employees for future needs.

Best Practices for Managing Furlough Leave

  • Clear Communication: Communicate the reasons and details of the furlough clearly to affected employees.
  • Support: Provide support resources such as unemployment benefits information.
  • Plan for Return: Develop a plan for employees to return to work once the furlough period ends.

How Furlough Leave Works

  1. Decision: Employer decides to implement furlough leave due to financial constraints.
  2. Notification: Employees are notified about the furlough and provided with details.
  3. Return: Employees return to work once the financial situation improves or the furlough period ends.

Key Features of Furlough Leave

  • Temporary: A temporary measure, not a permanent layoff.
  • Cost-Saving: Helps reduce labor costs without permanently losing employees.
  • Unpaid: Often involves unpaid leave, though some benefits may continue.


This depends on the company's policies and local regulations; some benefits may continue during furlough leave.

This depends on the terms set by the employer and any contractual agreements in place.

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