The four day working week

On June 6 this year, a six-month trial of the four-day work week began in the UK with over 70 businesses taking part from a wide range of industries – including food and drink, the banking sector, charities, education and retail. 

The trial is based on the 100:80:100 model whereby the employee receives 100% of their pay for 80% of working time in return for maintaining 100% productivity. 

So what are some of the potential benefits?

• Increased productivity

It is clear when comparing the level of productivity in countries around the world against the average number of working hours worked that working longer hours does not necessarily result in a higher level of productivity and that, in fact, the opposite may be true. Norway, Netherlands, Denmark and Germany are among the world’s most productive countries and yet they have an average working week of 27 hours. Conversely, the Japanese workforce are known for working very long hours but Japan is ranked much lower for productivity.

It is also interesting to note that when Iceland conducted the world’s largest pilot of a 35 to 36 hour work week in 2015 to 2019 (reduced from a 40 hour working week), the pilot was deemed to be a success with employers reporting that overall productivity remained the same or even increased.  

• Equality in the workplace

According to the Government Equalities Office, approximately two million British people are currently unable to work due to childcare responsibilities, 89% of whom are women. A four-day work week would help to promote a more equal workplace as employees would be able to spend more time with their families and save on childcare costs.

• Attracting and retaining talent

Employers who are willing and able to offer their employees a four day week for 100% pay are likely to attract a larger number of potential employees than their competitors who are still operating on the traditional five day a week model. As it has been widely reported that there are significant labour shortages in many UK industries, the ability to attract and retain employees is vital for many employers.

A real-life example of this can be found in Atom, an online bank. They have reported that after converting to a four-day week they experienced a 500% increase in job applications.

• Reduced carbon footprint

If the average working week was reduced by one day per week this would lead to a significant reduction in commuters and, therefore, a dramatic decrease in CO2 emissions. It would also ease congestion on the roads and public transport. 

• A happier workforce

It is not hard to see how working fewer hours per week is likely to lead to a healthier, happier workforce. This was borne out when Iceland conducted its pilot of a reduced working week and found that this led to a substantial reduction in stress and burnout among employees, who also reported an improvement in their work-life balance. 

If the six-month UK trial is a success, it is reasonable to assume that a four day working week may become a reality for many businesses, so here are some key points employers who are thinking of adopting a 4 day working week may need to consider:

1.Changes to contracts

If an existing employee’s hours are changed their contract of employment should be amended accordingly. Although it is unlikely that an employee would object to such an advantageous change, a contract cannot be amended unilaterally and would need to be done with their consent. 

2. Part-time employees

If a full time employee’s working week is going to be reduced from five days to four days with no reduction in pay, employers will need to ensure that their treatment of part-time employees is no less favourable. This could be achieved by reducing part-time workers’ hours on a pro rata basis while keeping their pay the same. 

3. Overtime

If the employer has an overtime policy which is based on the number of hours worked per week this will need to be adjusted to reflect the new reduced contractual hours. 

4. Monitoring hours worked

A reduction in working days could lead to a trend of employees working longer hours on the days that they are in work. An employer should monitor the hours that its employees are working and discourage them from working excessively long hours on their working days.  Failure to do so may mean both parties are less likely to reap the potential benefits that this working model is designed to achieve, resulting in employees becoming more susceptible to stress and burnout and failing to achieve a work-life balance, which would, in turn, have a detrimental impact on productivity.  

Marika Monaghan
Associate Solicitor
Direct Dial: 01342 310608
mmonaghan@mayowynnebaxter.co.uk