Sample Furlough Notification Letter

[DATE]

To: Employee Name

From: Management/Company Rep

RE: Furlough Notification

Dear (employee name),

Over the past year, [Company Name] has experienced [business issues leading to downsizing, financial difficulties, etc.] due to [the ongoing recession, lack of work in our industry, etc.]. As a result, your current position is being placed on furlough.

This change will take place effective [DATE] and continue until [further notice or date].

Furloughs are a company-initiated short-term temporary unpaid leave of absence; your employment with has not been terminated. The furlough period and provisions may be changed or terminated at the sole discretion of the Company.

During the furlough period, your health benefits (if applicable) [will/will not – verify obligation with broker] continue throughout this period as long as you continue to pay your portion of the benefits.

[If health benefits continue] The company will provide information regarding how to submit payment of premiums. Inability to pay premiums will result in a cancelation of coverage.

[If health benefits will not continue] If you are enrolled in company benefits, they will terminate on [DATE]. If applicable, you will receive information regarding the continuation of health care benefits.

[OPTIONAL] Current vacation/PTO accrual (will carry over after furlough; however, additional benefit accrual will not accrue while on furlough.

You may file for unemployment compensation. Please refer to your state’s guidelines for unemployment compensation regarding specific details and provisions surrounding application, eligibility, and collection of benefits.

During the furlough, we will communicate any changes in status, the direction of the furlough, or applicable business activities.

If you find alternate long-term employment during the furlough period and do not intend to return to work, please immediately notify management of your job status change.

Please accept our appreciation for all your hard work as we try to navigate our business through a difficult time. If you have any questions, please contact [Contact name] at [Contact information].

Sincerely,

Name of Manager/Company Rep

Title

phone

email