The Difference Between a Furlough and a Layoff
When you’re losing your job, the language your employer or boss uses may not seem important, but there are different types of job loss. Often, terms like layoff and furlough are used interchangeably, but they do have meaningful differences, especially when it comes to your job in the future and your ability to receive unemployment benefits.
With the coronavirus crisis sparking an enormous spike in unemployment, many, many people—jobless claims in the U.S. were at more than 40 million at last count—are experiencing job loss. Some people are getting their hours or pay cut; others are being let go altogether. With so many people experiencing these negative changes, it’s nearly guaranteed that you or someone you know will also be affected (if it hasn’t happened already) before economic conditions turn around. Keeping that in mind, it’s important to understand what kind of job loss is happening, and that’s where the difference between getting furloughed and getting laid off comes in.
To understand the differences and definitions of furlough and layoff, Real Simple spoke with Brittney Castro, CFP at Mint, for the information anyone experiencing a job loss or seeking to support someone through a job loss should know.