<p>As the coronavirus from China spreads and companies close, so does the question of what is a furlough vs layoff?
Source: Osugi / Shutterstock.com
Some employees are likely to hear about furloughs and layoffs during the coronavirus outbreak, but they are not the same thing. Let’s go through the difference between a furlough and layoff below.
A furlough is a temporary leave while a dismissal can be permanent. Employees who are part of a furlough may return to work without losing their position. The same does not always apply to a dismissal. One point where the difference from dismissal does not differ is salary, with both circumstances leading to none. However, employees who are in a job often get to keep their benefits. It is also worth noting that laid-off employees may reduce unemployment. This is not always the case with a furlough because it is up to each state to decide.
One major retailer that has recently announced is Macy’s (NYSE: M). The move will affect almost all of its 130,000 employees as the company seeks to reduce costs during the coronavirus outbreak.
Macy’s has already closed its stores and now plans to keep them closed until May. However, the reseller will still retain some employees to manage its online business, which is still in operation.
The M share fell by 7.64% as of Tuesday afternoon.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/03/coronavirus-2020-what-is-a-furlough-vs-layoff/.
© 2020 InvestorPlace Media, LLC