A furlough is a temporary leave or break from work, usually without pay but with the expectation of returning later. When a company experiences financial difficulties, it might place workers on furlough rather than firing them permanently. The employees stay home and don't receive paychecks, but they remain officially employed and can return when business improves.

A soldier on furlough could visit home or take a break from duty, knowing they had to report back by a specific date.

Schools sometimes use a similar idea: if your school closes unexpectedly due to a snowstorm, students get an unplanned break, though that's usually called a snow day rather than a furlough. The key difference with a furlough is that it's planned and temporary, not permanent, and the person on furlough keeps their job even though they're not currently working or being paid.

Government offices occasionally furlough workers during budget disputes, sending employees home until funding resumes. Unlike being laid off or fired, a furlough means your position still exists and you're expected to return when circumstances change.