Warning Signs of Potential Furloughs or Layoffs: What Employees Need to Know

Man pondering at work

Employees may see some signs or hear rumblings from others before any significant changes happen at a company. This is not always the case, especially regarding furloughs or layoffs. These two actions have detrimental consequences for more than the employees impacted but do unfortunately happen.

A furlough is usually a temporary suspension of employment. This is often used as a cost-saving measure by businesses during periods of economic downturn. Furloughed employees may be able to return to their job once business conditions improve.

A layoff, on the other hand, is typically a permanent termination of employment. This can happen for several reasons, such as a decrease in business demand or an overall restructuring of the company. Employees laid off will most likely not be able to return to their job even if business conditions improve.

Employees concerned about potential furloughs or layoffs at their company can look for one of the below signs that may indicate that their company is considering one of these events.

Financial Outlook

This is the most tell-tale sign that a furlough or layoffs could be implemented. If a company has been experiencing difficulties getting in the black, cost-cutting measures or other ways to raise revenue will be carried out. Employees who know about a company’s financial outlook may better understand if potential furloughs or layoffs may occur.

Reduced Hours or Temporary Leave of Absence

Hourly employees who notice they are not receiving as many hours as before should be wary of potential changes to the company. More significantly, if employees are asked to take an unpaid temporary leave of absence, it is best to consider looking for different employment opportunities.

Changes in Leadership

If a recent leadership change has brought on any of the events mentioned above, or if it’s known that new leadership is looking to thin the workforce, then employees should be prepared for furloughs or layoffs.

Navigating a Furlough or Layoff?

If you are concerned about the possibility of a layoff or furlough, it is important to stay informed about the latest developments at your company. You should keep an updated resume and list of references handy, just in case you need to start looking for a new job. Additionally, it’s essential to understand your rights and options if you believe an employer conducted a furlough or layoff unlawfully.

The Arizona employment attorneys at Barton Mendez Soto PLLC will fight to protect your interests. Let our dedicated team help you seek justice for your employment matter. Contact us online or by phone to set up a consultation. (480) 418-0668

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