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Definition: Employee Furlough is an alternative to layoffs.
In business, when an employer furloughs its employees, it requires them to work less hours or no hours at all or to take a certain amount of unpaid time off.
In a layoff strategy, the employer permanently separates employees from the payroll. However in a furlough strategy they can give them a temporary unpaid leave in order to cope with extreme situations like COVID-19. The employers adopting an EF strategy do not have to rehire the furloughed employees after the situation becomes normal.