Furloughing Employees is a tactic that employers can resort to in times of economic hardship. It allows the employer to reduce its cost of labor by, essentially, "temporarily terminating" their employee(s).
This is different from firing or laying off the employee(s), as with a furlough, there is an expectation that the employee(s) can be brought back on to their previously-held position once that economic hardship runs its course. This terminology may also be relevant for statistics and/or determining unemployment costs.
With this concept, employers can hope to retain some of their valuable workforces during a time in which they cannot afford to do so, and employees can hope to return to a familiar workplace.
How to mark a Furloughed employee in Fingercheck
Furloughing an employee in Fingercheck is a relatively simple process.
You just need to create a "Furloughed" status to differentiate these employees from ones who are still Active/Terminated, then, apply that status to the employees.
Creating a "Furloughed" status
- From your Fingercheck sidebar (the big blue left-hand column), go to Setup.
- Go to the System category, then click Employee Statuses.
- Click the blue Add button to create a new status.
- The Code and Description fields are just for naming purposes, so you can label these however you want.
We recommend "F" for the Code, and "Furloughed" for the Description.
- Employee Status should be set to "Inactive" for this purpose.
- Click the green Save button to complete the process.
Now you're ready to set this new status to an employee.
Labeling an employee as Furloughed
- From your Fingercheck sidebar (the big blue left-hand column), go to Employees.
- Use the search bar to find the employee you wish to change. Once located, click their Name or Employee Number to enter their Employee record.
- In the Employee record, go to the Position & Rates page. Look for the "Status & History" section, and click the Pencil icon to enter Editing mode.
- Look for the field called Employee Status. Change this to the "Furloughed" status you created earlier in this article.
- Click the blue Save button to save your changes. Once complete, the Status & History section should resemble the following.
That's all, now your employee is marked as Furloughed.
How to re-hire a Furloughed employee
Once you've successfully re-hired a Furloughed employee, you can follow the steps you previously went through for labeling them, except you'd change the Employee Status field to "A - Active".
However, there is a proper process involved in rehiring these employees.
Returning employees will have concerns and questions regarding any changes which may or may not have happened to the company and (more importantly to them) their position, and everything that comes with it- for example, their salary or benefits.
It is crucial to assuage these concerns, and typically this comes in the form of what's called a "Furlough Recall Letter".
Fingercheck can provide you with information and templates for these kinds of letters through our partnered service, HR Concierge.
If you have signed up for the HR Concierge service in the past, you can access it by going to Human Resources > HR Concierge from your Fingercheck sidebar (the big blue left-hand column), which will automatically log you into their dashboard.
If you have not signed up for HR Concierge, going there will give you directions on how to sign up.
You can also do so by simply reaching out to us using the contact information below.
Lastly, if ever you (or your employer) have any questions regarding this article, you can contact us at 1-800-610-9501, or, use our in-app messaging feature by logging into our secure site and initiating a conversation.
(Please note that HR Concierge is an affiliated third-party service, and as such we are unable to assist with any questions regarding it.)
To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com. Interested in our services? Sign up for a 30-day free trial and get started with FingerCheck today.