The COVID-19 pandemic brought flexible and hybrid working patterns with its destruction. Which, most of us will agree, is a good thing. Businesses offering flexible working to their team members have seen rises in productivity, reduced office-based and resource costs, and a happier workforce all round.
But what about the new initiative for the four-day working week?
Between June and December 2022, private and public sector businesses in Britain will participate in a pilot scheme run by the Universities of Oxford and Cambridge. Similar trials have already taken place in Iceland, New Zealand and Japan, and and have concluded that a four-day week boosts productivity, increases wellbeing, work-life balance, and leads to fewer instances of stress and burnout. The aim of this new pilot scheme is to determine if the same findings can be duplicated in the UK, and whether a move to this more sustainable way of working is commercially viable.
Here’s everything you need to know about how a four-day working week could look like for your business, and what impact it could have.
What is a four-day working week?
It sounds pretty straightforward. And it is. The four-day working week proposes that people work for four days out of seven, with a three day weekend.
There are different ways that a four-day working week can look like:
- Reducing working hours whilst paying staff the same salary.
- Reducing working hours with a pro-rata based reduction in salary.
- Keep working hours the same, but spreading them over four days instead of the traditional five.
Work patterns
A recent survey by the Social Market Foundation showed that 80% of British workers would not favour the introduction of a four-day working week if it means taking a cut to their pay packet.
As it stands, businesses are hesitant to introduce a four-day working week as the average worker would need to raise their productivity by 16% in order to avoid a drop in output. A four-day working week could involve a mix of higher consumer prices, taxpayer subsidies, and lower business profits.
The other side of the coin? It’s widely known that employees who are less stressed and enjoy a more balanced work-life regime are more productive when they’re working.
The four-day week in practice
Businesses need to consider how workloads can be managed in fewer hours. If the intention is to compress the same amount of hours into four days, there’s a real possibility of overworked and stressed employees. Another consideration is how the four-day working week pans out with customers of businesses. To meet the same service levels, employees would need to work different work patterns to ensure service continues across five days.
Potential benefits of the four-day working week
- Reduced absenteeism
- Enhanced recruitment and retention rates
- Positive social and environmental impact
- Increased employee engagement
The legal bit
Any change in contractual terms will generally require express agreement from employees. Before introducing a new contract, your business should discuss potential changes with all employees, explain clearly why the change is being proposed, and how and when it will be implemented. Listen to everyone’s concerns, as the potential changes may not suit everyone.
Remember – an employer who imposes a contractual change without its employees’ agreement will breach the contract. Which means that the contract’s original terms will remain in place. A breach of contract may ultimately lead to an employee considering themselves to have been constructively dismissed.
If you need advice on employment law or contracts, don’t hesitate to get in touch for a chat.
