furloughed

Furloughed describes the state of an employee who is placed on furlough—a temporary leave of absence from work. A furlough typically means the worker is not performing duties for a defined period and may not receive pay, though some employers arrange partial pay or continue certain benefits during the period. The employee remains employed by the company and is expected to return to work when the furlough ends.

Furloughs are used for economic, organizational, or operational reasons, such as during downturns, budget shortfalls, or emergencies that reduce workload. The concept originated in military and naval contexts and later spread to civilian workplaces, where it became a formal way to reduce labor costs without permanently terminating employees.

A key distinction is between furloughs and layoffs. A furlough is intended to be temporary, with the expectation that the employee will be recalled to work after the specified period or when conditions improve. In contrast, a layoff can be permanent or long-term. Whether benefits continue during a furlough and how pay is handled depend on company policy, employment contracts, or applicable labor laws; some employers require using accrued paid time off, while others may offer continued health coverage or other benefits for the duration of the furlough.

Return from a furlough typically follows a defined schedule, though extensions can occur if business conditions remain challenging. Effective communication and clear recall procedures are important to maintain operational continuity and minimize disruption for both employees and the organization.