What is the difference between a furlough and reduction in force (RIF)?
These terms describe actions that are intended to achieve cost savings by reducing a company’s payroll costs. Even though the words have been used interchangeably, their true meanings are quite different. A furlough is considered to be an alternative to layoff. When an employer furloughs its employees, it requires them to work fewer hours or to take a certain amount of unpaid time off during the year. For example, an employer may furlough its employees two days a month for the remainder of the year. Another method of furlough is to require all employees to take a week or two without pay sometime during the year. A reduction in force (RIF, pronounced “rif”) involves an involuntary separation of an employee or groups of employees due to economic pressures, lack of work, organizational changes or other reasons of business necessity that require a reduction in staff. Posted: 01/23/2008 • Can you tell us if we will be eligible for unemployment benefits while on furlough? The decision on une
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