Legal Question in Employment Law in New York

is there a time limit that a company can keep an employee on a furlough (unpaid leave)? Does keeping an employee on furlough preclude you from filing for unemployment? If a company typically offers a severance package upon seperation does that policy hold true in the case of placing someone on furlough?


Asked on 3/09/13, 5:12 am

1 Answer from Attorneys
Locksley Wade Law Office of Locksley O. Wade

The answer to your first question is no. Being on furlough (unpaid leave) is a qualifying event for unemployment insurance benefits. A furlough is a temporary event and a separation is a permanent event. If the furlough becomes a separation then you may qualify for a severance payment under your company's existing policy. A company may change their policy at anytime. There is no "hard and fast" rule as to severance payment as long as it is not discriminatory (age, race, disability, sex (gender)).

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Answered on 3/11/13, 4:46 am


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