A furlough is a temporary leave of absence from a job, often without pay, with the understanding that the employee will return. Employers use it to cut costs during slow periods without permanently ending anyone’s employment.
Merriam-Webster defines a furlough as a leave of absence, and the word is now most familiar in the workplace. When a company furloughs staff, it pauses their work and usually their pay for a set time, then brings them back when conditions improve.
Furlough in the workplace
A furlough is a middle path between keeping everyone fully employed and letting people go. During a furlough, workers typically stop working and stop receiving wages, but they remain employees on the company’s books. In many cases they keep some benefits, such as health coverage, and they retain their seniority and job title. Furloughs are common during economic downturns, government shutdowns, seasonal lulls, and emergencies that force a business to pause operations.
Furlough vs. layoff
The two terms are easy to mix up, but the difference matters:
| Furlough | Layoff |
|---|---|
| Temporary by design | Often permanent |
| Employment usually continues | Employment ends |
| Return to work expected | No guaranteed return |
| Some benefits may continue | Benefits typically stop |
Because a furlough is meant to be temporary, it lets employers hold on to trained staff and lets workers keep their place, even during a difficult stretch.
Other meanings
Outside the office, furlough has older uses. In the military, a furlough is authorized leave that lets a service member step away from duty for a period of time. In the justice system, a prison furlough is a temporary, supervised release that allows an inmate to leave for a specific reason, such as a family emergency or a work program, before returning to custody.
Origin of the word
Furlough entered English in the early 1600s. It comes from the Dutch verlof, meaning “leave” or “permission,” related to Middle Low German forms carrying the same sense. Early spellings such as furloff reflect that Dutch pronunciation. The word first described time off from military service and later spread to other kinds of authorized leave, including the employment sense that dominates today.
Using furlough correctly
Furlough works as both a noun and a verb. You can be placed on furlough, or an employer can furlough its workers. In each case the core idea is the same: a temporary, authorized pause with the expectation of coming back. That expectation of return is what separates a furlough from a permanent job loss and gives the word its distinctive meaning.
Why employers use furloughs
For a business, a furlough is a way to weather a rough patch without losing valuable people. Hiring and training new staff is costly and slow, so keeping experienced employees on standby can be smarter than letting them go. Furloughs also give organizations flexibility to respond to sudden events, such as a temporary drop in demand, a funding gap, or a required shutdown, and then resume normal operations once conditions improve. For workers, the trade-off is losing pay in the short term while keeping their job, their standing, and often their benefits, so they can step back in when the pause ends.
Frequently Asked Questions
What does furlough mean at work?
It means a temporary leave of absence, often unpaid, during which you keep your job and are expected to return later.
Is a furlough the same as being fired?
No. A furlough is temporary and the employment relationship usually continues, while being fired or laid off ends the job.
Are furloughed employees paid?
Often not, though some employers or programs provide partial pay or let workers keep certain benefits during the furlough.
Where does the word furlough come from?
It comes from Dutch verlof, meaning leave or permission, and entered English in the early 1600s.
Does furlough only apply to jobs?
No. It also refers to authorized leave for military personnel and to temporary release granted to some prisoners.