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4-day week | Benefits, challenges and busting media myths
Written by Susie Lockhart on 17 September 2024
Recent reports suggest that the UK Labour government is planning to introduce legislation that would give workers the right to request a four-day working week. According to the Daily Telegraph, employees would still be required to complete their full contracted hours to maintain their pay but could opt to compress those hours into four days.
This proposal aims to offer greater flexibility and improve work-life balance, aligning with Labour’s broader goals of enhancing workers’ rights while considering the needs of businesses and the economy.
The specifics of the proposed law remain unclear; however, the government has stressed that it will not force businesses to adopt a four-day week, and that any changes to employment legislation will be consulted on, working in partnership with businesses.
In this blog, we will explore the potential benefits of a four-day workweek, the challenges it may pose for businesses, and the practical implications of the proposed changes.
How could the four-day week benefit businesses?
While businesses may have reservations about a four-day working week, there are several potential benefits for employers.
In an interview with LBC, Education Minister Jacqui Smith noted that flexible working arrangements can boost productivity. She explained that by working 10 hours a day over four days instead of eight hours a day for five, employees will still be putting in the same amount of work while enjoying more time for family and personal activities. This approach could also reduce childcare needs and encourage more people into the workforce, aligning with the government’s growth mission.
Research from the world’s biggest four-day week trial supports these benefits, showing that 51% of participating companies permanently adopted the change, with 89% still following the policy one year later. Overall, more than half of the project managers and CEOs reported a positive impact on their organisations. While this trial involved working 100% of the output in 80% of the time – different from the UK government’s proposal – the results highlight the potential of a shorter working week to benefit businesses and employees alike.
The concept is also popular among employees, as shown by our recent survey of 250 LinkedIn users, which found that over three-quarters (76%) of respondents would prefer a four-day week of 10-hour days over the traditional five-day model. With this in mind, employers who offer these flexible working patterns and recognise the value of family-friendly working conditions could benefit from higher morale and job satisfaction, increased loyalty and retention, and better recruitment outcomes. Indeed, 50% of companies participating in the four-day week trial saw positive effects on reducing staff turnover, and 32% said it noticeably improved job recruitment, making it a potentially attractive prospect for organisations.
However, some argue that the government’s plans don’t go far enough. Joe Ryle, director of the 4 Day Week campaign, said he welcomes the proposals as a step towards reducing overall working hours in the UK but emphasised that simply compressing hours, rather than reducing them, may not fully achieve the desired improvements in work-life balance and productivity.
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What potential issues could the four-day week pose?
While the proposal is backed by Deputy PM Angela Rayner and unions, Conservative MPs have warned that the changes could leave businesses “petrified” due to the significant operational adjustments required.
One key challenge is managing part-time workers, who may not easily fit into a compressed hours model, as this may put those workers at a detriment. Additionally, businesses need to ensure that overall performance does not decline as employees adjust to longer workdays.
Of course, a four-day workweek might not be feasible in some sectors due to the need for continuous coverage. Reducing workdays could lead to service gaps and affect quality, especially in industries with customer-facing or 24/7 operations. Companies may therefore need to look at what is operationally feasible.
Annual leave policies could also pose issues, as they would need to be adjusted to align with the new work structure, taking into account that annual leave entitlement would be less than if working a five-day week. On the basis of proposing a four-day working week, if looking at cover on all operational days, this could also pose inequalities with annual leave in relation to bank holidays, depending on the working pattern, possibly leading to confusion or inequities among staff.
Furthermore, there are concerns about employee stress and wellbeing as working longer hours may lead to higher absence levels as a result of exhaustion. Those who continue to work a five-day week may experience a lack of support on the days their colleagues are off, leading to potential isolation, while employees working four days might experience increased stress due to the longer hours. This could have a significant impact on those who are working under apprenticeships or undergraduate programs, for example, who may require more direction and support in their role.
These factors could have adverse effects on productivity and morale, making it essential for businesses to carefully consider the implications of implementing a company-wide four-day week or approving individual requests for these arrangements.
Employers must also be mindful of the potential health and safety implications of proposing a four-day week to ensure there are sufficient staff to cover their obligations. Are there, for example, enough fire wardens and first aiders?
A storm in a teacup?
The four-day workweek often elicits strong opinions, and with the recent buzz around this topic, businesses may be concerned about the prospect of significant change. However, the reality might not be as dramatic as the media suggests for a couple of reasons.
Firstly, any flexible working arrangement, including a four-day week, will ultimately depend on a business’s ability to accommodate it. Since April, workers have had the right to request flexible working from day one of employment, but employers are not required to agree. Similarly, any new law would likely grant workers the right to request a four-day week, not to demand it, allowing scope for employers to reject such requests if there are legitimate business concerns.
As Labour has indicated, companies would still have discretion over whether they can implement such changes. Requests can be denied based on any of the eight statutory reasons, such as inability to meet customer demand or insufficient work during the proposed hours.
Secondly, employees already have the option to request compressed hours under existing flexible working laws, so any new legislation is unlikely to introduce significant changes beyond what’s currently available. The increased media attention may, however, remind employees of their existing rights and result in an uptick in flexible working requests, so it’s important that employers prepare for requests by updating policies and familiarising themselves with employment law.
How should employers deal with requests for a four-day workweek?
As the debate over a four-day workweek continues, employers can proactively prepare for an increase in requests – or indeed a change in law – by:
- Familiarising yourself with the current legal framework. It’s important for employers, HR, and managers to understand existing flexible working laws and the process for handling requests. This includes knowing the statutory reasons for rejecting requests and ensuring your policies are compliant.
- Assessing the business impact. Ahead of any change in law, it would be worthwhile to evaluate how a four-day week would affect your business, considering factors such as staffing needs, customer demand, and operational efficiency. This foresight will help you to provide well-founded responses if you need to reject requests, ensuring that any decision aligns with your organisation’s requirements and capabilities.
If requests for a four-day workweek arise:
- Engage in open dialogue with the employee. Discuss their proposed schedules and any potential impacts on their roles and the team. Understanding their needs and expectations can help in finding mutually agreeable solutions.
- Make an informed decision. Based on your assessment and discussions, decide whether to approve or deny the request. Ensure that any decision is fair, documented, and based on legitimate business reasons.
- Inform the employee of your decision. If the request is denied, provide a clear explanation as to why. If approved, outline the terms of the new arrangement and any adjustments needed to accommodate the change.
- Monitor the impact on business operations and employee performance. Be prepared to make adjustments if necessary to ensure that both business and employee needs are met effectively.
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