Boss2966
Industrial Relations
Anil.arora
Administration Head
+1 Other

Hello,
What is the actual concept of furlough, when & why is it used? Is furlough legal in India? How will an employee be treated in company records once he/she is put on furlough? How to end a furlough?
Would really appreciate if someone can put some light on this topic.
Thanks.
2nd November 2011 From India, Thana
Dear Komal Varma
Furlough is a half pay leave which is given to the officers in Defence Forces in India. An Officer will get 20 days Half Pay leave as Furlough in every year. You can refer Defence Services Regulations (India) Leave Rules, in which you can find the details about Furlough.
2nd November 2011 From India, Kumbakonam
Hello Mr. Bhaskar,
Thanks for the prompt reply, really appreciate the same. Just one question do we use this concept in private sectors like Pharma, IT, BFSI, Telecom etc and follow the same policy of half pay? If yes, can you provide me more data on the same or some online link which I can refer to?
Thanks,
Komal
2nd November 2011 From India, Thana
Well about this concept I would like say that this concept is when an employer places an employee into temporary non-duty, non-pay status because of budget issues, lack of work, or other non-disciplinary reasons. Furloughs may be voluntary or mandatory and are different from normal layoffs because employees continue to work on a reasonably regular basis. An employer will institute a furlough by scheduling employees to have certain days off without pay. For example, an employer may ask or require an employee to take off every other Monday without pay.

Basically this concept has come from US.

Few of details i would like to share about this what i have used for my research...

Non-exempt employees:

Furloughs are easiest to implement with non-exempt employees because under federal and most state wage and hour laws, non-exempt employees must only be paid for the actual hours they work. Therefore, employers may use furloughs for non-exempt employees by sending them home, and employers don't have to pay employees for regularly scheduled hours that are not actually worked.

Exempt employees:

It is more difficult to implement furloughs for employees that are exempt from wage and hour regulations and other state laws. Exempt employees are entitled to full weekly salaries for any week they perform work. If an employer does not fully pay an exempt employee for a full workweek, the employee’s exemption status may be jeopardized.

An exempt employee may be furloughed without losing her exempt status if the exempt employee is furloughed for an entire workweek. The employee must perform absolutely no work at all during that week, including even the most minimal tasks (such as checking email or voicemail). If the exempt employee performs any work during that week, the employee will then be entitled to her full weekly salary. The exempt employee’s weekly salary also cannot fall below $455, the current minimum weekly salary requirement for an employee to be considered exempt.

Other Issues:

There are other employment law issues to consider when employers implement furloughs. If an employee’s hours are reduced because of a furlough, the employee’s status might change from full-time to part-time, and that status change could affect the employee's benefits eligibility. There also may be notice or bargaining requirements if a negotiated collective bargaining agreement is in place.

To know more about this you can dig into web, there are several things are available. Also I have mentioned below some articles which will help you to understand all about this..

- The Law of Alternative Work Arrangements: Furloughs, Reduced Work-Weeks & Flexible Work Arrangements » The Glass Hammer

- Employers Hit Salaried Staff With Furloughs - WSJ.com

Hope this will help you ...

2nd November 2011 From India, Gurgaon
Hello Mr. Arora, Thank you so much for the information you have shared. Will surely get in touch with you if i need more information on this. For now, thanks a ton.... Thanks, Komal
3rd November 2011 From India, Thana
In India in Defence The Leave Furlough is being given only to the Officers, because they need to have more rest due to Mental Stress, and to avoid any unwanted Health problems due to work tension and highly extended working hours. But is it required for private sectors is a question which requires more deliberations before its implementation.
4th November 2011 From India, Kumbakonam
Hello Mr. Arora,
Any possibilities to get the Furlough letter template?
Kind Regards,
Anto
1st August 2019 From Qatar
Dear Tony, whether you require a furlough letter or not you have opened a pandora box which was closed in 2011
14th August 2019 From India, New Delhi
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