What's the difference between being furloughed and being laid off?

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When you are laid off from your job, your relationship to your employer is terminated, and you are no longer on the payroll. When you are furloughed, your relationship to your employer continues, just without you getting paid. This is the difference between being laid off and being furloughed.

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Furloughs are a temporary lay off from work where the employee returns at a later date. A lay off is when a company dismisses employees due to no longer being able to pay them, the employee is no longer needed, etc.

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While laid-off workers are sometimes rehired, the term usually refers to a permanent break in employment. A furlough, is typically for a shorter, fixed period of time. Workers are told to stop coming in to work or that their hours will be cut back.

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