Furlough Letter Template: Layoff Notice, Dates and Pay Terms

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Furlough Letter Template

Date:

Employee Name:

Employee Address:

City, State, ZIP:

Dear [Employee Name],

Notice of Furlough

This letter serves as formal notification that your employment with [Company Name] will be placed on furlough status effective [Start Date]. This action is being taken due to [Reason — e.g., economic conditions, business restructuring, or temporary closure].

Duration and Review

Your furlough is expected to last until [Anticipated End Date]. Please note that this duration may be extended or shortened based on business needs. You will be notified in writing if any changes occur.

Compensation and Benefits

During the furlough period, you will not receive regular pay; however, you may be eligible for unemployment benefits as permitted by law. [Optional: Specify whether benefits such as health insurance will continue and under what terms.]

Expectations During Furlough

While on furlough, you are not required or expected to perform any work-related tasks unless explicitly authorized by your supervisor in writing. Please ensure that all company property, including equipment, documents, or keys, is properly secured before your furlough begins.

Return to Work

When operations resume, you will be contacted regarding your expected return date. Failure to return to work as scheduled may be considered a voluntary resignation, unless otherwise arranged.

Contact Information

If you have any questions or concerns about your furlough, please contact [HR Contact Name] at [HR Contact Email] or [Phone Number].

We value your contributions and look forward to your return when operations allow. Thank you for your understanding during this period.

Sincerely,

[Manager or HR Representative Name]

[Title]

[Company Name]

[Phone Number]

[Email Address]

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Furlough Letter Template: Layoff Notice, Dates and Pay Terms

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Reviewed July 2026 Free download, PDF & DOCX

What is a Furlough Letter?

A Furlough Letter is a written notice sent by an employer to inform employees that their work and pay will be temporarily paused due to financial, operational, or unforeseen circumstances such as economic downturns or government mandates. It ensures clarity about the furlough period and future reinstatement terms.

Why is a Furlough Letter important?

It provides legal documentation of the employer’s decision, helps maintain transparency with employees, and protects the company from potential disputes by clearly defining the start and end of the furlough, employee benefits, and reemployment procedures.

When should a Furlough Letter be issued?

Employers should issue the letter before the start of the furlough period, giving employees sufficient notice as required by company policy or labor law. Early communication helps minimize confusion and maintain trust.

What should a Furlough Letter include?

It should specify the employee’s name, position, effective furlough date, anticipated duration, benefits continuation (if any), and a statement about possible recall or reemployment terms. It should also provide a contact person for questions.