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What Is Furlough? | HR Glossary | BambooHR

A temporary, agreed pause in work — often with reduced or state-supported pay — during which employment continues.

Furlough is a temporary leave of absence during which an employee remains employed but does little or no work, often because the employer faces a downturn or disruption. It became widely known through pandemic wage-support schemes.

The arrangement lets employers retain skilled staff through difficult periods rather than making redundancies, ready to resume when conditions improve.

Terms — including pay, duration and whether any work is permitted — must be agreed and documented clearly, and any government support scheme rules followed precisely.

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