{"id":8366,"date":"2023-08-05T19:44:59","date_gmt":"2023-08-05T19:44:59","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/savings\/furlough-vs-layoff-what-should-you-know-about-your-benefits\/"},"modified":"2023-08-05T19:45:00","modified_gmt":"2023-08-05T19:45:00","slug":"furlough-vs-layoff-what-should-you-know-about-your-benefits","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=8366","title":{"rendered":"Furlough vs. Layoff: What Should You Know About Your Benefits?"},"content":{"rendered":"
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It\u2019s been a rough couple of months for millions of Americans <\/span>and while some companies have been able to shift to work from home policies, others have had to furlough or lay off employees during this pandemic. In order to fully understand your benefits, let\u2019s take a minute to learn the differences between a furlough and a layoff.\u00a0\u00a0<\/span><\/span><\/p>\n

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What Happens When You\u2019re Laid Off?<\/span><\/strong><\/div>\n

Both involve not working, but a furlough is meant to be temporary while being laid off is permanent. In some insistences of a layoff, your employer may offer you a seve<\/span><\/span>rance package\u2014though there is no requirement for them to do so. Severance packages can help financially ease you into a layoff.\u00a0<\/span><\/span><\/p>\n

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They can include a sump sum cash payout or COBRA payments that help you remain on your employer\u2019s health insurance plan until you find another job or obtain your own health insurance. Being laid off means you are no longer an employee and must look for other employment options <\/span>or file for unemployme<\/span><\/span>nt.<\/span><\/span><\/p>\n

What Happens When You\u2019re Furloughed?<\/span><\/span><\/h3>\n

When you\u2019re furloughed your employer is picking an alternative to a layoff. Furloughs can come in many different forms. You are still employed, but being paid less or not at all. Furloughs and layoffs can happen in any industry to any position. You still have your health benefits in place, but you don\u2019t receive a paycheck and you can\u2019t contribute to benefits like a retirement plan or an HSA savings account.<\/span><\/span><\/span><\/span><\/span><\/p>\n

What Are Your Rights When You\u2019re Laid Off or Furloughed?<\/span><\/span><\/h3>\n

Unemployment benefits are available to people w<\/span><\/span><\/span>ho are both furloughed or laid off. The CARES Act has ensured increased unemployment benefits to many Americans. Furloughed employees are allowed to work for other employers.<\/span><\/span><\/span><\/p>\n

If you do find yourself furloughed or laid off, it\u2019s important to remember it doesn\u2019t have to do with your work performance. People are laid off or furloughed because the company is having problems Every situation is unique so we\u2019d encourage you to reach out to our advisors to talk about your personal situation if needed.<\/span><\/span><\/span><\/p>\n

Download Your Infographic Below:<\/span><\/span>\u00a0<\/span><\/span><\/span><\/h3>\n

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