top of page
  • Writer's pictureHumberto Arturo Caiaffa

Coronavirus: Layoffs vs Furloughs

There are several pros and cons to consider when determining whether a furlough is a good alternative to a layoff. #coronavirus #furloughs #layoffs.

Being an employer during the COVID-19 era may be one of the most challenging moments of a business owner. The lack of prospective business creates anxiety and the need to anticipate expenses and cut losses. Many Americans are being laid off and furloughed and the differences between the two are not known to the general public. Here is a basic and to the point summary of the advantages and disadvantages between the two.

The advantages of furloughs include:

•Employers avoid employment terminations and the attendant potential legal liability.

•Employees don't lose their jobs.

•Employers don't have to eliminate positions and manage organizational consequences.

The furloughs’ disadvantages compared to layoffs include:

•Furloughs will generally save employers significantly less than layoffs. In addition to keeping people on the payroll, furloughs usually mean paying for benefits even on unpaid days. Furloughed employees may also be eligible for unemployment insurance payments.

•Full-time workers may lose morale if their workloads increase in relation to the time they have to work due to the furloughs. In addition, furloughed employees may feel upset and disconnected from their jobs and colleagues if they consistently have to take significant periods of unpaid time off.

Note: Caiaffa Law P.A. Blog is only for information purposes. It is recommended to seek the advice of a lawyer to make decisions in relation to the issues mentioned above. Call us at 305-539-9260 or schedule an appointment with us online.

107 views1 comment
bottom of page