Temporary Leave vs. Termination

Question

Debbie Sparks · Accepted Answer

THIS IS A SUMMARY OF "BEST PRACTICE” OPINIONS WE HAVE GATHERED TO DATE.

Due to the uncertainty regarding potential congressional action dictating whether and how furloughed workers will be able to access federal paid sick, family and medical leave resources, employers are strongly urged to place employees on temporary leave and advise them that they expect to have work available within 120 days, as opposed to terminating them. There is no additional cost to employers; employees remain eligible for UI benefits through the state; and employees may remain eligible for potential federal assistance.

Steps for employers placing employees on temporary unpaid leave:

Rather than terminating the employee, specify a temporary / indefinite leave with return to work expected within 120 days.
Do not create a contractual obligation to bring the employee back to work – let the employee know that the situation is fluid and subject to change.
Notify Outstaffing immediately of any employees who you place on leave, or who are unable to work because they are sick, quarantined, immunocompromised, or have an unanticipated family care responsibility. You should inform them that they are eligible for unemployment insurance benefits.
Ensure employees are aware that when they file for unemployment they should state that this is a temporary layoff. As Outstaffing is your PEO, they must complete the application specifying that their employer is Outstaffing, Inc., P.O. Box 1099, Chatham, VA 24531 (EIN#: 54-1858052).
Get each employee’s up-to-date contact information (mailing address, personal email and home/cell telephone numbers). Please send immediately to Outstaffing.
Appoint a single or limited number of individuals at your business who will field questions, and communicate that information to employees. Keep a tally of all questions and answers. Suggest they call Outstaffing if they have any unemployment or benefits continuation questions.
Please keep your employees, and Outstaffing, informed of all decisions you make concerning closing/opening business operations or payroll and benefits changes that may affect them and their families.

Outstaffing will be available to you as we navigate our way through these difficult times together. Things will undoubtedly change, but we have been supporting our clients for over 25 years, and we will stay strong with you during these trying times. Please call if you have any questions.