Furlough Letter

A furlough letter is a formal notice issued by an employer to inform an employee of temporary unpaid leave. This document is different from a termination of employment letter, as during the furlough leave an employee keeps their job position and the employment contract remains intact. A well-drafted furlough letter from employer must include start and end dates of unpaid leave and any obligations the employee must continue to observe, such as confidentiality or non-compete agreements, etc.

The parties involved in a furlough letter are an employer and an employee. This document cannot be used outside of employment relations, for example, in case parties are independent contractors or service providers.

This editable furlough letter for employees US could be helpful when an organization or business:

• experiences economic downturn;
• seasonal slowdowns in operation or revenues;
• business restructuring or improvement.

Drafting a furlough letter from scratch is a challenging task. We’ve got you covered here and prepared the list of the top-5 most important tips you must be aware of when creating this type of letter:

• Sender’s Details. The text of every furloughing letter template for employee must start with the identification details of an employer. Include the organization’s full name, address, and contact information of an authorized person sending this letter.
• Furlough Reasons. The law does not specify the exact list of reasons when furlough is possible. The most common reasons usually include closure of certain departments, downturn in the business activity, financial troubles, etc. The good business practice is to explain the reason behind such a decision, as it helps to maintain trust between employer and employee.
• Furlough Details. When drafting a furlough letter from employer try to be as specific as possible. Include the following details: (1) furlough start date; (2) furlough end date (if not known, state this information in the text of the letter); (3) type of furlough leave—paid or unpaid; (4) additional benefits—decide if employer wish to pay any benefits during the furlough or not.
• Additional Duties. Some employers may want to include a non-compete clause in the text of a furlough letter to ensure their employees do not participate in competing activities. If this is the case, employers must, in their turn, offer an employee additional compensation in exchange for the provided obligation. Usually, employers offer fully paid furlough leave. If the parties wish so, they could enter a separate non-compete agreement to agree on more details regarding the non-compete obligation.
• Conclusive Statement. It is important to inform an employee that the decision regarding the furlough is not connected in any way with their performance.

To get a fully customized legal document template, follow a few easy steps below:

1. Click the create document button.
2. Answer a simple question in the form.
3. Select a template’s format—furlough letter template Word or PDF.
4. Make a payment.
5. E-sign, download, print, and send this letter to the selected employees.