A temporary, mandatory unpaid leave of absence due to economic or organizational factors.
Furlough is a temporary leave of absence from work, during which employees retain their job but receive reduced or no pay. Furloughs are typically implemented by employers facing financial difficulties or seasonal downturns to avoid permanent redundancies. During the COVID-19 pandemic, government furlough schemes (such as the UK's Coronavirus Job Retention Scheme) allowed employers to claim grants covering a portion of furloughed employees' wages. HR software manages furlough scheduling, tracks affected employees, and calculates any applicable government grant claims.
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