Glossary

Furlough

A temporary, usually unpaid, mandatory leave initiated by the employer.

A furlough is an employer-initiated temporary leave, often unpaid, used to cut costs during downturns while keeping employees on the books rather than laying them off.

Unlike a layoff, furloughed staff usually retain their job and benefits and are expected to return. Furloughs are tracked so status and return dates are clear.

Example: During a slow season, a business furloughs part of its staff for one month to reduce payroll.

In Orvella: Record furlough periods as a leave type so headcount status stays accurate.

Related terms

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