Workforce Tip of the Week, sponsored by Spectrum Employee Services: The difference between furlough and layoff

    As COVID-19 hits the world economy hard, most companies are forced to think, “Should I lay off my employees or furlough them?” Here are some basic differences:


    1. Furlough: Typically used when there is a definitive length of time the employee/s will be out of work.  It allows the employee to keep benefits while not at work so there can be a seamless transition back to the workplace when things pick back up.
    2. Layoff: Layoffs are used more often when the amount of time the employee will be away from work is unknown or possibly permanent.

    One of the biggest concerns is whether the employee will be eligible for unemployment; and right now the answer is yes, no matter if it is furlough orlLayoff.  If you’re an employer that needs help with a strategy, contact us.

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