An employer considering a reduction in force to cut costs ma

An employer considering a reduction in force to cut costs may opt instead for a - PHRi Prep

Question

An employer considering a reduction in force to cut costs may opt instead for a temporary, mandatory period of unpaid leave for a group of employees. This is referred to as a:

Answers

Layoff.
correct
Furlough.
Hiring freeze.
Leave of absence.

Explanation

Correct Answer Is:

B. Furlough.
Explanation
A furlough is a temporary, mandatory period of unpaid leave that an employer may impose on employees in times of financial difficulty or when reducing labor costs. Unlike a layoff, employees on furlough remain employed and are expected to return to work once the situation improves.

Why the other options are incorrect:

A. Layoff.
A layoff refers to the permanent or long-term separation of employees due to cost-cutting measures or workforce reductions. Unlike furloughs, layoffs typically result in the termination of employment rather than a temporary leave.
C. Hiring freeze.
A hiring freeze is a policy that temporarily halts the hiring of new employees but does not affect the status of current employees. It is different from a furlough, which directly impacts the employees' time off.
D. Leave of absence.
A leave of absence is typically a voluntary or non-mandatory period of time away from work for various personal or medical reasons, and it is usually not related to cost-cutting measures like furloughs.

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