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Furlough

March 20, 2023

For the 2018 American film, see Furlough (film). For military furloughs, see Leave (military).

A furlough (/ˈfɜːrloʊ/; from Dutch: verlof, "leave of absence") is a temporary leave of employees due to special needs of a company or employer, which may be due to economic conditions of a specific employer or in society as a whole. These furloughs may be short or long term.

United States

US federal government

In the United States, involuntary furloughs concerning federal government employees may be of a sudden and immediate nature. Such was the case in February 2010, when a single United States Senate objection prevented emergency funding measures from being implemented. As a result, 2,000 federal workers for the Department of Transportation were immediately furloughed as of March 1, 2010.[1] The second-longest such shutdown was December 16, 1995, to January 6, 1996, which affected all non-essential employees, shutting down many services including National Institutes of Health, visa and passport processing, parks, and many others. This happened again on October 1, 2013,[2] and on January 19, 2018.

The United States Congress failed to pass a re-authorization of funding for the Federal Aviation Administration, and as a result, furloughed about 4,000 workers at midnight on July 22, 2011.[3]

Potential furlough in 2011

Congress was on the verge of forcing a government shutdown on April 8, 2011, if their plan to reduce the federal budget deficit was not resolved, which would have caused the furlough of 800,000 out of two million civilian federal employees.[4][5]

Furloughs in 2013

Main articles: United States budget sequestration in 2013 and 2013 United States federal government shutdown

The first federal government furloughs of 2013 went into effect as a result of budget sequestration (or sequester) – the automatic spending cuts in particular categories of federal outlays. (This procedure was first used in the Gramm–Rudman–Hollings Balanced Budget Act of 1985.) The sequesters were designed to take place if the federal deficit exceeded a set of fixed deficit targets. In 2013 specifically, sequestration refers to a section of the Budget Control Act of 2011 (BCA) that was initially set to begin on January 1, 2013, as an austerity fiscal policy. These cuts were postponed by two months by the American Taxpayer Relief Act of 2012 until March 1, when this law went into effect. At that time, most federal departments and agencies began furloughing their employees in order to meet their spending cut targets. For the Department of Defense, almost all of the civilian workforce as well as most full-time, dual-status military technicians of the National Guard and the Reserves were affected. The initial furlough requirement was 176 working hours per affected employee, which was later cut to 88 hours. Due to cost-cutting measures in other areas, this furlough was further reduced to a total of 48 working hours per DoD civilian and full-time Reserve Component member.

Later, on October 1, 2013, at 12:01 am EDT, Congress' inability to agree on a spending bill led to a government shutdown. During the shutdown, most "non-essential" government employees were furloughed. This resulted in approximately 800,000 government workers being put on a leave beginning October 1. Congress later unanimously voted to restore pay to the furloughed workers.[6][7]

Furloughs in 2018 and 2019

Main article: 2018–19 United States federal government shutdown

Due to the government shutdown starting on December 22, 2018, approximately 350,000 federal employees were furloughed for 35 days until January 25, 2019.[8]

Furloughs in 2020

In September 2019 the United States Department of Labor issued Fact Sheet #70 governing furloughs. These rules have remained in place (as of 21 March 2020), but with new developments in connection with the COVID-19 pandemic in the United States, new rules and guidance could be issued at any time.[citation needed] The United States Department of Labor has a Coronavirus Resources page which can be consulted for the latest developments.[9]

Schools

Board members of various school districts as well as universities implemented "furlough days" in 2009. This made students pay the same rate, if not more, for their education while providing fewer educational days by forcing educators and staff members to take the day off. In states such as Georgia, the Board of Regents of the University System of Georgia included a clause so that mandatory furlough days are implemented but no classes are lost during the 2009–2010 academic year.[10]

In California, the State Employee Trades Council (SETC) voted to implement a mandatory two-day-per-month furlough policy for the staff and faculty of the CSU system.[11] The furloughs, intended to prevent layoffs, began in August 2009, and ended in June 2010. The 10% cut saved about $270 million of the CSU's $564 million budget deficit.[12]

Private sector

During the global recession of 2009 companies such as Intel, Toyota, and Gannett implemented furloughs.[13]

In the US federal government shutdown of 2013 federal contractors such as Lockheed Martin and United Technologies considered furloughing their own employees.[14]

In 2020, retail giants, including Kohl's and Macy's, furloughed thousands of employees because of decreased sales connected to the COVID-19 pandemic in the United States.[15]

In April of 2020, Disney furloughed over 100,000 employees, while almost all Disney executives kept their jobs and received bonuses.[16]

United Kingdom

The word furlough was used until at least 1908 to describe military personnel home on leave.[17] It was also widely used by religious groups in the twentieth century to refer to the periods when their missionaries returned to the UK on long leave.

COVID-19 pandemic

In 2020, in response to the COVID-19 pandemic, Her Majesty's Government introduced what was described as a "furlough" programme to support employers and workers.[18][19] For many years the term "furlough" had been very little known in the United Kingdom,[20] and many HR managers were not acquainted with the US "furlough" system.[21] Formally named the Coronavirus Job Retention Scheme, it funded businesses to continue paying up to 80% of employees' salary for those that would otherwise have been made unemployed.[22]

Philippines

In the Philippines, a furloughed employee is deemed to be placed on "floating status". The Labor Code, particularly Article 301, provides a legal basis for the furlough process of an employee; an employee could be furloughed if the business had a "bono fide suspension of operations" or if the said individual should fulfill a military or civic duty. The Labor Code emphasizes that the employment status of a furloughed employee is not terminated.[23] Employees under "floating status" do not render actual work and thus do not receive any salary.[24] However an employee may only be placed on floating status for a period of not more than six months[25] after which the employee could be retrenched or asked to report back to work.[24]

During the COVID-19 pandemic the Department of Labor and Employment issued an order allowing furloughed employees to be extended for a year provided there is mutual agreement between the employer and employee[24] and for employees to look for alternative temporary work without losing their employment status with their original employer.[26]

Other uses

The term furlough in employment can also refer to annual leave, long service leave, time off based on a company-planned schedule. For example, with a "work three weeks, off one week" schedule, a company's workforce is divided into four groups. Each group, in turn, takes a week off on furlough while the remainder work. It can also refer to a vacation from missionary work, military leave, or, in the case of convicts, parole, probation, conjugal visit, or work release.

See also

 
Look up furlough in Wiktionary, the free dictionary.

References

  1. ^ "Sen. Bunning Single-handedly Causes 2,000 Federal Worker Furloughs". Blogs.abcnews.com. 2010-03-01. Retrieved 2013-10-07.
  2. ^ (PDF). Archived from the original on September 28, 2005. Retrieved 2010-09-22.{{cite web}}: CS1 maint: archived copy as title (link) CS1 maint: bot: original URL status unknown (link)
  3. ^ Smith, Ian. "FAA to Furlough Nearly 4,000 Employees". FedSmith.com. Retrieved 2020-02-24.
  4. ^ Charles Riley, staff reporter (2011-04-06). "Shutdown: 800,000 federal workers in the dark". Money.cnn.com. Retrieved 2013-10-07.
  5. ^ "Government Prepares for Shutdown". Online.wsj.com. 2011-04-06. Retrieved 2013-10-07.
  6. ^ Korte, Gomez, Gregory, Alan (October 5, 2013). "Congress likely to restore pay for furloughed workers". USA Today.
  7. ^ Schmidt, Michael S.; Shanker, Thom; Siddons, Andrew (September 28, 2013), "Federal Agencies Lay Out Contingency Plans for Possible Shutdown", The New York Times, retrieved 5 March 2020
  8. ^ Guida, Victoria (January 9, 2019). "Shutdown's economic damage: $1 billion a week". Politico. Retrieved January 10, 2019.
  9. ^ Coronavirus Resources
  10. ^ "Furlough Information - Human Resources". University System of Georgia. Retrieved 2013-10-07.
  11. ^ . Calstate.edu. Archived from the original on 2013-10-04. Retrieved 2013-10-07.
  12. ^ Fontana, Cyndee (July 18, 2010). . The Modesto Bee. Archived from the original on 2013-10-05. Retrieved 2013-10-08.
  13. ^ "Employee Furloughs Can Be a Bad Alternative to Layoffs". ERE.net. February 9, 2009. Retrieved October 8, 2013.
  14. ^ "United Technologies, Lockheed Martin Revise Furlough Plans After Pentagon Brings Workers Back". The Motley Fool. October 7, 2013. Retrieved October 8, 2013.
  15. ^ Repko, Melissa (30 March 2020). "Kohl's will furlough about 85,000 employees, Macy's furloughs majority as retailers cope with significant sales losses". CNBC.
  16. ^ "Disney Furloughs 100,000 Workers, Top Execs Get to Keep Their Jobs: Reports FT". Forbes.
  17. ^ Office, Great Britain War (May 14, 1908). "The King's regulations and orders for the army". H.M.S.O. – via Google Books.
  18. ^ "UK Gov: COVID-19: support for businesses". GOV.UK. 26 March 2020. Retrieved 31 March 2020.
  19. ^ Szulc, J. M. & Smith, R. (2021). "Abilities, Motivations, and Opportunities of Furloughed Employees in the Context of Covid-19: Preliminary Evidence From the UK". Frontiers in Psychology. 12:635144: 635144. doi:10.3389/fpsyg.2021.635144. PMC 7991597. PMID 33776862.{{cite journal}}: CS1 maint: multiple names: authors list (link)
  20. ^ Lawrie, Eleanor (May 12, 2020). "What does it mean if I've been furloughed by work?". BBC News.
  21. ^ "Is the 'all or nothing' Furlough system causing more problems for small businesses? | Business Leader News". April 14, 2020.
  22. ^ . GOV.UK. Department for Business, Energy & Industrial Strategy. 24 March 2020. Archived from the original on 26 March 2020. Retrieved 26 March 2020.
  23. ^ "Inquiry". eFOI - Electronic Freedom of Information. 12 August 2020.
  24. ^ a b c "DOLE allows workers on 'floating status' for a year". CNN Philippines. 28 October 2020. Retrieved 7 March 2021.
  25. ^ "Workers placed on floating status at 2M". BusinessWorld. 9 December 2020. Retrieved 7 March 2021.
  26. ^ Patinio, Ferdinand (28 October 2020). "'Floating' employees allowed to find alternative work: DOLE". Philippine News Agency. Retrieved 7 March 2021.

External links

 
Wikisource has the text of the 1905 New International Encyclopedia article "Furlough".

March 20, 2023
furlough, examples, perspective, this, article, deal, primarily, with, represent, worldwide, view, subject, improve, this, article, discuss, issue, talk, page, create, article, appropriate, november, 2020, learn, when, remove, this, template, message, 2018, am. The examples and perspective in this article deal primarily with the UK and USA and do not represent a worldwide view of the subject You may improve this article discuss the issue on the talk page or create a new article as appropriate November 2020 Learn how and when to remove this template message For the 2018 American film see Furlough film For military furloughs see Leave military A furlough ˈ f ɜːr l oʊ from Dutch verlof leave of absence is a temporary leave of employees due to special needs of a company or employer which may be due to economic conditions of a specific employer or in society as a whole These furloughs may be short or long term Contents 1 United States 1 1 US federal government 1 1 1 Potential furlough in 2011 1 1 2 Furloughs in 2013 1 1 3 Furloughs in 2018 and 2019 1 1 4 Furloughs in 2020 1 2 Schools 1 3 Private sector 2 United Kingdom 2 1 COVID 19 pandemic 3 Philippines 4 Other uses 5 See also 6 References 7 External linksUnited States EditUS federal government Edit In the United States involuntary furloughs concerning federal government employees may be of a sudden and immediate nature Such was the case in February 2010 when a single United States Senate objection prevented emergency funding measures from being implemented As a result 2 000 federal workers for the Department of Transportation were immediately furloughed as of March 1 2010 1 The second longest such shutdown was December 16 1995 to January 6 1996 which affected all non essential employees shutting down many services including National Institutes of Health visa and passport processing parks and many others This happened again on October 1 2013 2 and on January 19 2018 The United States Congress failed to pass a re authorization of funding for the Federal Aviation Administration and as a result furloughed about 4 000 workers at midnight on July 22 2011 3 Potential furlough in 2011 Edit Congress was on the verge of forcing a government shutdown on April 8 2011 if their plan to reduce the federal budget deficit was not resolved which would have caused the furlough of 800 000 out of two million civilian federal employees 4 5 Furloughs in 2013 Edit Main articles United States budget sequestration in 2013 and 2013 United States federal government shutdown The first federal government furloughs of 2013 went into effect as a result of budget sequestration or sequester the automatic spending cuts in particular categories of federal outlays This procedure was first used in the Gramm Rudman Hollings Balanced Budget Act of 1985 The sequesters were designed to take place if the federal deficit exceeded a set of fixed deficit targets In 2013 specifically sequestration refers to a section of the Budget Control Act of 2011 BCA that was initially set to begin on January 1 2013 as an austerity fiscal policy These cuts were postponed by two months by the American Taxpayer Relief Act of 2012 until March 1 when this law went into effect At that time most federal departments and agencies began furloughing their employees in order to meet their spending cut targets For the Department of Defense almost all of the civilian workforce as well as most full time dual status military technicians of the National Guard and the Reserves were affected The initial furlough requirement was 176 working hours per affected employee which was later cut to 88 hours Due to cost cutting measures in other areas this furlough was further reduced to a total of 48 working hours per DoD civilian and full time Reserve Component member Later on October 1 2013 at 12 01 am EDT Congress inability to agree on a spending bill led to a government shutdown During the shutdown most non essential government employees were furloughed This resulted in approximately 800 000 government workers being put on a leave beginning October 1 Congress later unanimously voted to restore pay to the furloughed workers 6 7 Furloughs in 2018 and 2019 Edit Main article 2018 19 United States federal government shutdown Due to the government shutdown starting on December 22 2018 approximately 350 000 federal employees were furloughed for 35 days until January 25 2019 8 Furloughs in 2020 Edit In September 2019 the United States Department of Labor issued Fact Sheet 70 governing furloughs These rules have remained in place as of 21 March 2020 update but with new developments in connection with the COVID 19 pandemic in the United States new rules and guidance could be issued at any time citation needed The United States Department of Labor has a Coronavirus Resources page which can be consulted for the latest developments 9 Schools Edit Board members of various school districts as well as universities implemented furlough days in 2009 This made students pay the same rate if not more for their education while providing fewer educational days by forcing educators and staff members to take the day off In states such as Georgia the Board of Regents of the University System of Georgia included a clause so that mandatory furlough days are implemented but no classes are lost during the 2009 2010 academic year 10 In California the State Employee Trades Council SETC voted to implement a mandatory two day per month furlough policy for the staff and faculty of the CSU system 11 The furloughs intended to prevent layoffs began in August 2009 and ended in June 2010 The 10 cut saved about 270 million of the CSU s 564 million budget deficit 12 Private sector Edit During the global recession of 2009 companies such as Intel Toyota and Gannett implemented furloughs 13 In the US federal government shutdown of 2013 federal contractors such as Lockheed Martin and United Technologies considered furloughing their own employees 14 In 2020 retail giants including Kohl s and Macy s furloughed thousands of employees because of decreased sales connected to the COVID 19 pandemic in the United States 15 In April of 2020 Disney furloughed over 100 000 employees while almost all Disney executives kept their jobs and received bonuses 16 United Kingdom EditThe word furlough was used until at least 1908 to describe military personnel home on leave 17 It was also widely used by religious groups in the twentieth century to refer to the periods when their missionaries returned to the UK on long leave COVID 19 pandemic Edit In 2020 in response to the COVID 19 pandemic Her Majesty s Government introduced what was described as a furlough programme to support employers and workers 18 19 For many years the term furlough had been very little known in the United Kingdom 20 and many HR managers were not acquainted with the US furlough system 21 Formally named the Coronavirus Job Retention Scheme it funded businesses to continue paying up to 80 of employees salary for those that would otherwise have been made unemployed 22 Philippines EditIn the Philippines a furloughed employee is deemed to be placed on floating status The Labor Code particularly Article 301 provides a legal basis for the furlough process of an employee an employee could be furloughed if the business had a bono fide suspension of operations or if the said individual should fulfill a military or civic duty The Labor Code emphasizes that the employment status of a furloughed employee is not terminated 23 Employees under floating status do not render actual work and thus do not receive any salary 24 However an employee may only be placed on floating status for a period of not more than six months 25 after which the employee could be retrenched or asked to report back to work 24 During the COVID 19 pandemic the Department of Labor and Employment issued an order allowing furloughed employees to be extended for a year provided there is mutual agreement between the employer and employee 24 and for employees to look for alternative temporary work without losing their employment status with their original employer 26 Other uses EditThe term furlough in employment can also refer to annual leave long service leave time off based on a company planned schedule For example with a work three weeks off one week schedule a company s workforce is divided into four groups Each group in turn takes a week off on furlough while the remainder work It can also refer to a vacation from missionary work military leave or in the case of convicts parole probation conjugal visit or work release See also Edit Look up furlough in Wiktionary the free dictionary Four day week Layoff Short time working Prison furloughReferences Edit Sen Bunning Single handedly Causes 2 000 Federal Worker Furloughs Blogs abcnews com 2010 03 01 Retrieved 2013 10 07 Archived copy PDF Archived from the original on September 28 2005 Retrieved 2010 09 22 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link CS1 maint bot original URL status unknown link Smith Ian FAA to Furlough Nearly 4 000 Employees FedSmith com Retrieved 2020 02 24 Charles Riley staff reporter 2011 04 06 Shutdown 800 000 federal workers in the dark Money cnn com Retrieved 2013 10 07 Government Prepares for Shutdown Online wsj com 2011 04 06 Retrieved 2013 10 07 Korte Gomez Gregory Alan October 5 2013 Congress likely to restore pay for furloughed workers USA Today Schmidt Michael S Shanker Thom Siddons Andrew September 28 2013 Federal Agencies Lay Out Contingency Plans for Possible Shutdown The New York Times retrieved 5 March 2020 Guida Victoria January 9 2019 Shutdown s economic damage 1 billion a week Politico Retrieved January 10 2019 Coronavirus Resources Furlough Information Human Resources University System of Georgia Retrieved 2013 10 07 Members of State Employees Trades Council Ratify Tentative Agreement for 2009 2010 CSU Public Affairs Calstate edu Archived from the original on 2013 10 04 Retrieved 2013 10 07 Fontana Cyndee July 18 2010 Furloughs over for schools in the CSU Education The Modesto Bee Archived from the original on 2013 10 05 Retrieved 2013 10 08 Employee Furloughs Can Be a Bad Alternative to Layoffs ERE net February 9 2009 Retrieved October 8 2013 United Technologies Lockheed Martin Revise Furlough Plans After Pentagon Brings Workers Back The Motley Fool October 7 2013 Retrieved October 8 2013 Repko Melissa 30 March 2020 Kohl s will furlough about 85 000 employees Macy s furloughs majority as retailers cope with significant sales losses CNBC Disney Furloughs 100 000 Workers Top Execs Get to Keep Their Jobs Reports FT Forbes Office Great Britain War May 14 1908 The King s regulations and orders for the army H M S O via Google Books UK Gov COVID 19 support for businesses GOV UK 26 March 2020 Retrieved 31 March 2020 Szulc J M amp Smith R 2021 Abilities Motivations and Opportunities of Furloughed Employees in the Context of Covid 19 Preliminary Evidence From the UK Frontiers in Psychology 12 635144 635144 doi 10 3389 fpsyg 2021 635144 PMC 7991597 PMID 33776862 a href Template Cite journal html title Template Cite journal cite journal a CS1 maint multiple names authors list link Lawrie Eleanor May 12 2020 What does it mean if I ve been furloughed by work BBC News Is the all or nothing Furlough system causing more problems for small businesses Business Leader News April 14 2020 COVID 19 support for businesses GOV UK Department for Business Energy amp Industrial Strategy 24 March 2020 Archived from the original on 26 March 2020 Retrieved 26 March 2020 Inquiry eFOI Electronic Freedom of Information 12 August 2020 a b c DOLE allows workers on floating status for a year CNN Philippines 28 October 2020 Retrieved 7 March 2021 Workers placed on floating status at 2M BusinessWorld 9 December 2020 Retrieved 7 March 2021 Patinio Ferdinand 28 October 2020 Floating employees allowed to find alternative work DOLE Philippine News Agency Retrieved 7 March 2021 External links Edit Wikisource has the text of the 1905 New International Encyclopedia article Furlough Guidance and Information on Furloughs from the United States Office of Personnel Management Furlough The worst cockpit terror of them all What if it happens to you by Patrick Smith May 26 2006 CNNMoney special report Enjoy your forced vacation March 11 2009 Retrieved from https en wikipedia org w index php title Furlough amp oldid 1126974469, wikipedia, wiki, book, books, library,

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