There is no doubt that the notion of a four-day working week without a reduction in pay is slowly gaining momentum. Earlier this week the media reported that over 200 companies in the UK have now successfully implemented it. These companies collectively employ more than 5,000 people, who are all now enjoying the advantages of only working four days a week.
This seems to align with evolving workplace expectations, particularly among 18-34 year olds. Whilst it is fair to say that both sides of the employee / employer divide see the potential advantages, whilst at the same time both being slightly sceptical about how the implementation could work in practice.
Advantages and disadvantages
The advantages for employees are obvious - they get an extra day off every week without a reduction in pay. For those in pursuit of the much-coveted work-life balance, it represents a big shift towards some sort of equilibrium. There are clear advantages for employers too, with reports suggesting an extra day off boosts productivity, improves staff health and wellbeing, and increases staff retention.
That said, there is understandable scepticism on both sides about how this could work in practice. Whilst the employee might not get an immediate reduction in salary when the scheme is first implemented, some question whether it will result in lower salary increases in the medium term leading to an overall real term drop in pay in the longer term.
Equally, it is very unlikely employers will be willing to pay the same level of salary, for less work in return. People who are paid by the hour are only going to maintain the same level of pay, if they also maintain the same number of working hours across the four days. If employees are pressured into achieving the same level of output in four days rather than five, this could result in increased stress levels and sickness absence across the workforce, as well as a possible drop in quality of work. If that is what a particular business is proposing (to increase staff hours across the four working days), it will need to take into account the obligation under the Working Time Regulations 1998 to ensure workers have a minimum of 11 hours of continuous rest in a 24-hour period.
Comment
The four-day working week is a great idea, at least in theory. As a society, if we can find a way to make it work for both staff and businesses alike, few are going to complain. It matches broader trends happening across the UK, with most people (particularly the younger generations) wanting to work differently – no one can have missed the seismic shift since 2020 towards more flexible and agile ways of working, albeit other news reports suggest some big named companies and recognised business leaders are now coming out in favour of a return to the office.
There is no doubt that the four-day working week is gaining momentum, and the more the press continues to report its benefits, the quicker that momentum will gain pace. Expectations around work are evolving, with a greater emphasis now being placed on mental health and the work-life balance. It is equally true that employers who embrace flexibility, whether through a four-day week or otherwise, might have an edge in attracting and retaining talent.
But nevertheless, the notion of a four-day working week across the wider UK continues to attract questions. Particularly in terms of feasibility and how it can work in practice without having some sort of detrimental impact on staff, businesses, and the economy in the long term. There is unlikely to be a one size fits all solution. While office-based industries might find it slightly easier to adapt, sectors requiring consistent services such as healthcare, hospitality and more client-facing roles will likely find it more difficult. Whilst it has been successfully implemented for the 200 companies being reported in the news, other companies have tried it and decided not to implement it permanently. Whilst the Government previously showed an interest in the four-day week, this has since been scaled back and it isn’t being pursued on the legislative agenda in Parliament.
Whilst I hope these questions can be answered in the fullness of time, after all the movement behind the four-day week is only in its infancy, but for now I remain sceptical of its practical implementation and long-term impact. For more information, please contact a member of our Employment Team.