Considerations When Severing Employment Relationships With Furloughed Employees

April 28, 2020

As a result of COVID-19, employers have been forced to take a hard look at employment levels. Many employers have furloughed employees. Furloughing an employee is distinguishable from terminating an employee. A furloughed worker is still considered an employee, but they have been forced to take a temporary break from work without pay or had their work hours significantly reduced. This permits employers to cut costs without ending the employment relationship, and in most cases permits the employee to receive unemployment benefits.

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