A furlough is a temporary, unpaid leave of absence, reduction in hours, or pay cut. It is a mandatory and temporary pause on employment, and employees are expected to return to work or be restored from a reduced work schedule. Furloughs are usually used as a strategy to keep employees while protecting the companys bottom line. They are often implemented when a company does not have enough money to make payroll or when there is not enough work for their employees. Furloughed individuals are still considered employees and usually resume their jobs at a later point, while those who are laid off are separated from their employer indefinitely.

Some key differences between furloughs and layoffs include:

• Duration: Furloughs are temporary, while layoffs are permanent.
• Pay: Furloughs are unpaid, while layoffs may include severance pay.
• Benefits: Workers who are furloughed generally continue to receive health benefits through their employer, except for when their hours are reduced so much that they no longer meet the providers eligibility requirements. A layoff is a qualifying event under the Consolidated Omnibus Budget Reconciliation Act (COBRA), but a furlough is not.
• Eligibility for rehire: Furloughed employees are usually eligible for rehire, while laid-off employees may or may not be eligible depending on their HR file.

Its important to note that furloughed employees cannot work at all while they are furloughed, even something as small as sending an email could require the employer to pay that employee for the full day.