People Processes

Unemployment Vs Furlough

Informações:

Sinopsis

Many companies, now that the PPP funds have been distributed, are making the big decision this week on whether to layoff employees or not. I wanted to bring another option to the table to protect your team when they can not work. Obviously, the "best" option for the employee is paid leave, but that’s unaffordable for some small businesses (see our info on the FFCRA to see if that could help though!). Furloughs, on the other hand, allow employers to cut labor costs without severing that relationship fully. What is a furlough? A furlough is a suspension from work without pay for a finite period of time. It can be mandatory or voluntary. While public and private institutions can both furlough employees, you’re probably most familiar with them at the federal level. Workers are often furloughed as a cost-saving measure during a government shutdown. It also happens sometimes when labor organizations can't come to an agreement or budget with the employer. Organizations do this when they don’t want to lay off staff b