How is 'Furlough' beneficial to employers?

The option that states furlough provides subsidies to pay employees during reduced business activity is correct because furlough schemes are designed to support businesses during times when they cannot maintain full operational capacity due to circumstances like economic downturns or crises. By allowing employers to claim financial assistance from the government to cover a portion of their employees' wages, businesses can retain their staff without the burden of paying full salaries. This helps businesses manage their payroll costs while keeping their workforce intact, positioning them for a quicker recovery once economic conditions improve.

In contrast, the other choices highlight various misconceptions about furlough. Simply laying off employees without repercussions does not capture the essence of furlough, which typically retains the employment relationship and aims to preserve jobs. Requiring employees to take unpaid leave does not align with the goals of a furlough scheme, which often still compensates employees, albeit at a reduced rate. Lastly, the suggestion that work hours increase automatically runs counter to the concept of furlough, where the intention is often to reduce hours worked while providing financial assistance.