An employer uses a furlough letter to place an employee on furlough. This guide will teach you how to write a letter using our employee furlough letter template.
What Is Furlough?
A furlough is a temporary, unpaid leave of absence from work. Employers often use furloughs to cut costs during periods of reduced business activity and financial hardship. Examples of businesses that often use furlough include landscaping companies and ice cream shops.
During furlough, employees are usually required to take a certain amount of time off without pay. However, they are still employed by the company. Furloughs are distinct from layoffs, which are permanent.
What Is a Furlough Letter?
An employer uses a furlough letter to tell an employee that they are being placed on furlough. It can be a written confirmation of the employer’s verbal notice to the employee.
Every furlough letter should contain the following:
- The names and addresses of the employer and employee
- Why is the employer placing the employee on furlough
- The starting date and duration of the furlough
- Whether the employee will continue receiving benefits during furlough
When To Use a Furlough Letter
Employers should use a furlough letter whenever they need to place an employee on furlough. Furloughs may be necessary for the following situations:
- When there is a temporary decrease in business operations (i.e., winters for ice cream shops)
- During times of economic hardship
- When the business must be closed due to circumstances beyond the employer’s control, such as a pandemic or natural disaster
- When an employee requests a temporary leave of absence
How To Write a Furlough Letter
A furlough letter allows employers to communicate compassionately and clearly with their employees during a furlough. Follow these steps to create your furlough letter.
1. State the Names and Addresses of the Employer and Employee
First, write the name and address of the employer’s company and the date of the letter. Next, add a space and write the employee’s name and address.
2. Write the Greeting
After writing the date and both parties’ contact information, write the greeting. Furlough letters are formal, so they should begin with “Dear” and the employee’s name.
3. Write the Body of the Letter
You can now write the body of the letter. Make sure to include the following:
- A clear and concise statement of the letter’s purpose. Start by telling the employee why the employer is implementing a furlough program. Then, tell them that the furlough program affects the employee’s position.
- The duration of the furlough. State the furlough’s starting date and duration (i.e., four months). Assure the employee that the employer will monitor the situation and inform them of any changes.
- Employee expectations and duties while on furlough. Tell the employee they will not be required to perform work-related responsibilities and will not receive their regular salary during furlough. You should also outline expectations for continued training, if applicable.
- Employee benefits during furlough. If the employee’s health and other benefits continue during the furlough, write that out. You should also mention whether these benefits are subject to continued payments of required employee contributions.
- A list of financial assistance resources, such as government programs, internal company resources, and non-profit organizations. Including a list of financial resources can be helpful for employees who may be facing financial difficulties due to the furlough. It can also show employees that the employer cares about them.
- A short thank-you to show the employee you value them. The last paragraph of the letter should thank the employee for their service. It should also alleviate their worries by reminding them that the furlough is only temporary and that you look forward to resuming normal operations as soon as possible. Include the names and contact information of supervisors or HR representatives that can address the employee’s questions and concerns.
4. End and Sign the Furlough Letter
Once you’ve finished the body of the employee furlough letter, add a space and write the close. Most people end formal letters with “Sincerely,” but you can also use “Thank you,” “With appreciation,” and “Respectfully.”
After writing the close, add a space and write your name, title, and company name. You can then sign, proofread, and send the letter.
Furlough Letter Example
Writing a furlough letter from scratch can be challenging, so below you can see a written example:
Furlough Letter Sample
Download a furlough letter template below in PDF or Word format: