Sample Furlough Notification Letter

[DATE]

To: Employee Name

From: Management/Company Rep

RE: Furlough Notification

Dear (employee name),

Due to the COVID–19 public health emergency [and recent local/state mandates if applicable], (Company name) is implementing actions to ensure our future financial stability. Unfortunately, this current pandemic situation has impacted our business significantly, and as a result, we find that we must make some problematic short-term decisions.

[if the business is temporarily closing use: Due to the COVID-19 public health emergency [and recent local/state mandates if applicable], (Company name)’s business volume has been impacted significantly. As a result, we find that we must make a questionable short-term decision to close our business temporarily.]

As a result, your current position with (company name) is being placed on furlough effective immediately and until further notice. Furloughs are a company-initiated short-term temporary unpaid leave of absence; your employment with (company name) has not been terminated at this time. The furlough period and provisions may be changed or terminated at the sole discretion of the Company and do not create any employment contract, express or implied.

During the furlough period, your health benefits will continue (if applicable) throughout this furlough period as long as you continue to pay your portion of the benefits. [See attached letter for repayment of premiums]

During the furlough period, 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. The link for [state] unemployment office is: [insert a link to state UI office]  

[Depending on your situation, you may have some benefits through (state) Paid Family Leave and Disability Benefits: (insert link).] 

You [may/may not] use Personal Time Off (PTO)/Vacation during the furlough period.

If you find alternate long-term employment during the furlough period and do not intend to return to work at (company name), please immediately notify Human Resources or me of your job status change. If the Company is not able to return you to work by the end of the furlough period, your employment status will be considered to be a reduction in force.

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

Please accept our appreciation for all your hard work with (company name) as we try to navigate our business through a difficult time. If you have any questions, please contact me or (name) in Human Resources.

Thank you,

Name of Manager/Company Rep

Title

phone

email