A(n) _____ is a short-term elimination of paid workdays applied to salaried workers, as opposed to hourly workers.
A. work sharing culture
B. demotion
C. furlough
D. lay-off
E. transfer
The correct answer and explanation is :
The correct answer is:
C. furlough
Explanation:
A furlough is a temporary, unpaid leave of absence or reduction in paid workdays imposed by an employer, typically due to financial difficulties or economic downturns. It is commonly applied to salaried employees rather than hourly workers. During a furlough, employees remain employed by the company but do not receive their regular wages for the duration of the furlough period.
Key Differences Between a Furlough and Other Employment Actions:
- Furlough vs. Layoff: A layoff is a permanent or indefinite termination of employment, while a furlough is temporary, with an expectation that the employee will return to work.
- Furlough vs. Demotion: A demotion involves reducing an employee’s rank, responsibilities, or pay, while a furlough is simply a suspension of work without termination or a change in job title.
- Furlough vs. Work Sharing Culture: Work sharing refers to a system where employees work fewer hours to avoid layoffs, often supported by unemployment benefits. A furlough, on the other hand, involves a full suspension of work for a period.
- Furlough vs. Transfer: A transfer involves moving an employee to a different department, role, or location, but it does not involve unpaid leave or a reduction in workdays.
Common Reasons for Furloughs:
- Economic downturns – Companies facing financial struggles may use furloughs to cut costs without laying off workers permanently.
- Government shutdowns – Public sector employees are often furloughed during budget crises or government shutdowns.
- Pandemics or emergencies – During COVID-19, many businesses furloughed employees due to temporary closures.
Furloughs help companies manage costs while keeping employees available for future work, making them a useful tool during uncertain times.