Furloughed vs. Fired

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By the time you read this article, you have probably already been personally affected by the economic ramifications of the coronavirus. Many organizations have already begun rounds of terminations. Others have opted for mandatory furloughs for employees. Still others have opted for some combination of the above, along with other measures, to keep them afloat over the long haul.

Let’s take a look at some key differences between firing and furloughing employees.

Furloughed Employees

When an employer opts to furlough employees, it means their job is temporarily suspended but not gone. Here are the basics:

  • A furlough is generally considered temporary and may or may not have a set end date. For example, some organizations have furloughs on a semiregular basis. It is considered a form of temporary leave of absence.
  • Furloughs can be short and recurring to trim costs, such as furloughing employees every other Friday or 1 day per month. (Remember, however, that there may be other ramifications for short, recurring furloughs. Employees who qualify as overtime-exempt and are paid on a salaried basis often cannot be subject to a short furlough that is unpaid without essentially nullifying their overtime exemption status. Consult with legal counsel in these cases to ensure these are handled appropriately.)
  • Employees do not get paid during the furlough. Continue reading here…

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Source: HR Daily Advisor

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