What You Need to Know About Furlough vs. Layoff
A furlough is a temporary absence of personnel caused by the company’s needs. A layoff is a temporary suspension or permanent termination of an employee for business purposes. The distinction between a layoff and a furlough is explained in detail here.
What is the main difference between furlough and layoff?
Furloughed employees are still employed by the company they work for, but they cannot work and get compensation. The difference between being furloughed and being laid off is that a lay-off employee must be rehired to continue working for the company.
If you’re an hourly worker, your furlough may reduce the number of hours you’re scheduled to work rather than a loss of work. If you normally work 40 hours a week, you may need to work 30 hours instead. You’ll make less money, but you’ll still have a job. However, a reduction in your working hours may impact the benefits you are eligible for from your company.
Related: Pennsylvania Furlough Laws: Explained
Can I get unemployment on Furlough?
You are not entitled to paid sick leave or paid expanded family and medical leave if your company furloughs you because there isn’t enough work for you. You may, however, be eligible for unemployment compensation.
Can I get unemployment on Layoff?
Unemployment Insurance (“UI”) benefits give money to unemployed workers for a short period or whose work hours have been drastically curtailed. If you were laid off due to a lack of a job, you are almost always eligible for benefits, and you may even be eligible if you were fired or quit.
What happens to my benefits when I am furloughed?
When you are furloughed, you keep your benefits, including health and life insurance, for example. When you’re furloughed, you keep your employment rights, which means you cannot lose your job while on leave.
Related: California Furlough Laws: Explained
What happens to my benefits when I am laid off?
If you are laid off, your employer may provide you with 30 days’ notice. Employers must issue 30-day notice under the federal WARN Act if:
- The company has 100 or more full-time employees with at least six months on the job; or
- Employs 100 or more staff that work at least a combined 4000 hours a week (in the private sector)
Other circumstances may necessitate a 30-day notice period from your employer. For example, if your company has a mass layoff involving 50 and 499 full-time employees, your employer may be required to provide you advance notice.
You are not obligated to accept a severance package if you receive an offer. Accepting a severance package may entail relinquishing some of your rights. For example, you may need to sign a non-compete agreement prohibiting you from working for certain businesses or clients for a specific length of time.
If you lose your job, you can apply for unemployment benefits. However, accepting a severance payment may impact your unemployment benefits, depending on your state.
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