Employee Furlough

Attrition (Workforce Reduction)
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Munadil Shafat
Student (MBA), Bangladesh
🔥NEW The word "furlough" recently has got some prevalence due to COVID-19. What does it actually refer to? Employee Furlough (EF) is often misunderstood as being the same as employee layoff. However it is actually an alternative to layoff. The word furlough means: leave, vacation, permission, license, permit, holiday, day off. In business, when an employer furloughs its employees, it requires them to work less hours or no hours at all or to take a certain amount of unpaid time off. In some countries, the government then pays a substantial part of the salaries of the furloughed employees to avoid the Covid crisis will harm the employees and the economy. EF is a cost saving strategy for employers when they don't want to lay off staff but lack the resources to continue paying them. In a layoff strategy, the employer permanently separates employees from the payroll. However in a furlough strategy they can give them a temporary unpaid leave in order to cope with extreme situations like COVI (...) Read more? Sign up for free

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