Differences between dismissals, furloughs, and layoffs

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This article outlines the basic differences between dismissals (sometimes known as firings), furloughs, and layoffs (sometimes known as job cuts).

NOTE: Accountability Wiki does not provide legal or employment advice or services. If you are in need of assistance on these matters, please contact a professional.

Basic overview

Dismissals Furloughs Layoffs
Possibly related to employee's performance Green check.svg Yes Dark Red x.svg No Dark Red x.svg No
Possibly related to employer's needs or economic downturn Green check.svg Yes Green check.svg Yes Green check.svg Yes
May be reversed as situation changes - allowing worker to return to job Dark Red x.svg No Green check.svg Yes Green check.svg Yes
May include a severance package Green check.svg Yes Green check.svg Yes Green check.svg Yes
May include partial pay or hours Dark Red x.svg No Green check.svg Yes Dark Red x.svg No
Generally includes benefits Dark Red x.svg No Green check.svg Yes Dark Red x.svg No
Generally qualifies for unemployment benefits in the United States Green check.svg Yes Green check.svg Yes[note 1] Green check.svg Yes
Sources:[1][2][3][4][5][6][7][8][9]

Notes

  1. If receiving partial hours or pay, amount received from insurance may be reduced by amount received from employer.

References

  1. Congress, Senate., United States, Committee on Foreign Relations (1953). "Mutual Security Act of 1953: Hearings Before the Committee on Foreign Relations, United States Senate, Eighty-third Congress, First Session, on a Bill to Amend the Mutual Security Act of 1951, and for Other Purposes ...". Economic assistance, American. U.S. Government Printing Office, 1953: 470.
  2. Fired vs. Laid Off Connotations Archived February 19, 2011, at the Wayback Machine
  3. "Supreme Court Confirms Doctrine of At-Will Employment". Meyers Nave. Retrieved June 21, 2018.
  4. "Employee Furloughs Can Be a Bad Alternative to Layoffs". ERE.net. February 9, 2009. Retrieved October 8, 2013.
  5. Repko, Melissa (30 March 2020). "Kohl's will furlough about 85,000 employees, Macy's furloughs majority as retailers cope with significant sales losses". CNBC.
  6. "COVID-19: support for businesses". GOV.UK. Department for Business, Energy & Industrial Strategy. 24 March 2020. Archived from the original on 26 March 2020. Retrieved 26 March 2020.
  7. "Redundancy: your rights". www.gov.uk.
  8. Harvard University. Graduate School of Business Administration (1921). "Labor Terminology". Bulletin of the Bureau of Business Research. 25: 50. Retrieved 8 January 2017.
  9. Okatenko, Anna (1 January 2010). "The Impact of the Reason for Layoff on the Subsequent Unemployment Duration". Annals of Economics and Statistics (99/100): 285–315. doi:10.2307/41219168. JSTOR 41219168.