Sad though it may be, many employers resorting to layoffs and terminations as a means to reducing costs. After all, labor is the largest expense for many employers. During the current recession, a different option has become increasingly popular. Furloughs are mandatory, unpaid time off for a larger group of employees. Unlike layoffs, furloughs keep employees on board, so they’re more likely to be around when the economy recovers, unlike laid off employees who tend to look for new jobs. That reduces recruitment and retraining costs in the future. However, there are some issues and potential liabilities any employer should look out for before deciding furloughs are their “magic bullet”. Employment law attorney Jan Hirsch of Jordan Schrader Ramis P.C., Portland, Ore., runs down the pros and cons of furloughs. It’s a must-read for any employer in a cost-cutting mode.
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About Curt Kipp
Curt Kipp is the director of publications and communications at the Oregon Association of Nurseries, and the editor of Digger magazine.