Can You Work Another Job or for Yourself While on Furlough?

Generally, no, you cannot perform any work for the employer who placed you on furlough. However, you are typically allowed to work for a different employer or on your own business, provided you do not violate your employment contract. Understanding the specific rules of your furlough is critical to navigating this period of temporary leave correctly and protecting your professional standing.

What Exactly is a Furlough?

Before delving into the rules of working, it's essential to define a furlough. A furlough is a mandatory, temporary leave of absence from work, initiated by an employer typically due to budget constraints, funding lapses, or unforeseen economic events. Unlike a layoff, a furlough is intended to be temporary, with the expectation that you will return to your job. Based on our assessment experience, there are two primary types:

• Administrative Furlough: This is a planned action due to budgetary issues. Your employer might suspend your work but may continue certain employee benefits.
• Emergency Furlough: This occurs unexpectedly, often due to sudden events that disrupt funding or operations.

Can You Work for Your Furloughing Employer?

The cornerstone of a furlough is the cessation of work. If you are on a full-time furlough, you are legally prohibited from performing any tasks for your employer, even checking emails or taking a brief phone call. This is a critical labor regulation; if an employer requires work, they must compensate you for it, effectively ending your furlough status.

In some cases, an employer may propose a flexible furlough arrangement, where you work a reduced number of hours. This must be a formal, agreed-upon change to your furlough status, and you must be paid for all hours worked. It is not a gray area.

Is It Permissible to Work for a New Employer While on Furlough?

Yes, in most cases, you are allowed to seek and accept employment with a different company while on furlough. This can be a practical way to maintain income. However, you must carefully review your existing employment contract for two key restrictions:

1. Exclusivity Clauses: Some contracts may prohibit taking on other employment. While these are not always enforceable, they must be considered.
2. Non-Compete Agreements: Your contract may prevent you from working for a direct competitor. Violating this could have legal consequences. It is generally acceptable to work in a different industry or role.

Pro Tip: If you pursue a new job, be transparent with the new employer about your furlough status and the temporary nature of your availability if you expect to return to your original role.

Can You Continue Running Your Own Business?

Yes, working on your own business or as a freelancer is typically treated as separate employment and is usually permissible. This can be an excellent opportunity to develop your venture, learn new skills, and establish a productive routine. If there is uncertainty about returning to your furloughed job, growing your business can provide a valuable career safety net.

What Other Productive Activities Can You Do on Furlough?

Beyond paid work, a furlough offers time for valuable professional development.

• Volunteering: You can absolutely volunteer your skills for non-profit organizations. This keeps you engaged, builds your network, and enhances your resume. Importantly, you cannot volunteer for your furloughing employer if the work you do is typically paid.
• Training and Upskilling: Undertaking training is highly encouraged. You can use this time to gain new certifications or improve existing skills. If your employer requires you to complete specific training during a full-time furlough, they are obligated to pay you at least the national minimum wage for the time spent training.

Practical Tips for Navigating a Furlough

A furlough can be disorienting, but a proactive approach turns it into an opportunity.

• Assess Your Finances: Create a budget to understand your new financial reality. This will help you decide if finding temporary work is necessary.
• Update Your Professional Materials: Use the time to refresh your CV (Curriculum Vitae) and professional portfolio. Highlight recent achievements and skills.
• Establish a New Routine: Structure your days to include job searching, skill development, and activities that support your well-being.
• Stay Informed: Maintain appropriate contact with your employer for updates on your return-to-work date.

The key to a successful furlough is understanding the strict rule against working for your furloughing employer while leveraging the freedom to pursue other income-generating opportunities, skill development, and volunteering, all within the bounds of your existing contract.