Explaining the difference between furlough and layoffs

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ARKANSAS (KNWA/KFTA) — Several companies furloughing thousands of workers due to the economic fallout from the coronavirus pandemic but what exactly does it mean to be furloughed and how does it differ from being laid off?

A furlough is a “temporary layoff from work.” Furloughed workers are still considered an employee, but they have been forced to take a break from work without pay or reduced hours.

Workers also usually keep their existing benefits and return to the same pay level when they are brought back.

A layoff however is a separation of employment that can be either temporary or permanent.

This means the worker is not kept on the company’s payroll but could be rehired at a later date.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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