A furlough is a temporary leave of absence granted by an employer to an employee for a variety of reasons.
These include financial difficulties, restructuring, or a reduction in workload. It is often used as a cost-cutting measure and can affect both full-time and part-time employees. It is important to provide affected employees with a furlough letter that outlines the details of the situation if your company is planning a furlough.
This article discusses key points to include in a furlough letter and provides an example for reference. Important points to include in a furlough letter include the following Reason for furloughing:
Be clear about the reason for the furlough, such as a work reduction or reorganization.
Effective dates: State the exact start and end dates of the furlough. Alternatively, state that the furlough is indefinite.
How long it lasts: If the furlough has a specific duration, state how long it will last.
Pay and benefits: Discuss how the employee’s pay and benefits will be affected during the leave. This includes whether the employee will receive pay or benefits while furloughed, how the furlough will affect vacation and sick leave, and whether the employee will be eligible to collect unemployment.
Return to the workplace: Information on how and when the employee can expect to return to work, including any conditions to be met, such as retraining or drug testing.
Point of Contact: Provide a point of contact for any questions the employee may have regarding the furlough. This could be the human resources department or a designated supervisor.
Furlough letter example Download
Sample Furlough Letter:
[Company Letterhead]
[Date]
[Employee’s Name]
[Employee’s address]
[City, State, Zip Code]
Dear [Name of Employee],
due to [reason for leave], we will need to take a temporary leave of absence starting on [date leave begins]. It is anticipated that the furlough will be for [duration of furlough], but we will provide you with updates if the situation changes.
During the period of the furlough, you will be [paid/unpaid] and [list any changes to your benefits, vacation, or sick leave]. Please note that you may qualify for unemployment during this time. We want to assure you that we value your contributions to our company and we understand that this news may be unsettling.
Updates, including details about returning to work, will be provided as they become available. If you have any questions or concerns, please feel free to contact [contact person]. Thank you for understanding and working with us during this difficult time.
Sincerely,
[Representative of the Company]
[Name of the Company]
