what does it mean to furlough an employee

To furlough an employee means to place them on a temporary, unpaid leave of absence or significantly reduce their working hours as a cost-saving measure. The employee remains employed by the company and usually retains benefits like healthcare, but does not receive a salary during the furlough period. This is typically done during economic downturns, reduced demand, or other temporary business challenges to avoid layoffs. The furlough is intended to be temporary, with the expectation that the employee will return to their normal work schedule once conditions improve.