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American Airlines to Furlough 25,000 Employees

airlinegeeks.com

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Re: American Airlines to Furlough 25,000 Employees

#4
post #2

> These letters indicate that potential layoffs or furloughs are possible in the near future as air travel demand continues to suffer due to COVID-19. it's a warning of a furlough, not an actual furlough.

Unless COVID magically goes away(tm) by October 1st and travel rebounds to where it was before, which is looking exceedingly unlikely, the furloughs will happen as soon as the payroll subsidies end.

Re: American Airlines to Furlough 25,000 Employees

#6
post #3

Can someone educate me what exactly is the difference between furlough and layoff?

A furlough is a temporary layoff

Main difference is a furlough means your job might come back, and usually you keep benefits like insurance.

Furlough also allows access to unemployment benefits, since you're still not getting paid

Re: American Airlines to Furlough 25,000 Employees

#7
post #3

Can someone educate me what exactly is the difference between furlough and layoff?

A layoff is permanent, and even if the position is reinstated, you have no claim to get your old job back.

A furlough is meant to be temporary and some benefits may contain to be paid out. If the company starts bringing people back in, those on furlough will be rehired first if still available.

That said, if the company doesn't recover fast enough or goes under entirely, there's no difference in practice.

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