Guide to Furlough and its meaning. We explain its benefits, notice requirements, examples, and comparison with termination. FURLOUGH meaning: 1. a period of time that a soldier, worker, or prisoner is allowed to be absent, especially to…. Learn more. Furlough is a temporary unpaid leave of absence for employees due to economic or other reasons. Learn how furloughs work, how long they last, what benefits they offer, and how they differ from layoffs. Furlough is simply defined as the temporary leave or absence from work, for which you are not paid. It is different from normal leave because the employer will provide you with this leave even when you don't need a leave.