Definitions
- Referring to a temporary or permanent termination of employment due to financial or business reasons. - Talking about a reduction in workforce due to economic downturns, restructuring, or company closures. - Describing a situation where an employee is let go from their job without any fault of their own.
- Describing a temporary leave of absence granted to employees due to financial or business reasons. - Referring to a mandatory unpaid leave of absence for employees due to economic downturns or company closures. - Talking about a situation where employees are required to take time off work without pay.
List of Similarities
- 1Both layoff and furlough involve temporary or permanent absence from work.
- 2Both can be caused by financial or business reasons.
- 3Both can affect a large number of employees at once.
- 4Both can result in loss of income for the affected employees.
- 5Both can be used as a means of cost-cutting for companies.
What is the difference?
- 1Duration: Layoff is typically longer-term or permanent, while furlough is usually shorter-term and temporary.
- 2Payment: Layoff often involves severance pay or unemployment benefits, while furlough usually does not provide any compensation.
- 3Purpose: Layoff is often a result of downsizing or restructuring, while furlough is usually a cost-saving measure.
- 4Employment status: Layoff implies termination of employment, while furlough suggests a temporary leave of absence.
- 5Recall: Laid off employees may not be rehired, while furloughed employees are usually expected to return to work after the leave period.
Remember this!
Layoff and furlough are both terms used to describe situations where employees are temporarily or permanently absent from work due to financial or business reasons. However, layoff typically refers to a longer-term or permanent termination of employment, while furlough is usually a shorter-term and temporary leave of absence without pay.
