The biggest pilot of the four-day week has started in the UK with 3300 workers at 70 companies trialling 100% pay for 80% of the work with a condition that 100% productivity is maintained.
The idea is to improve staff wellbeing particularly at a time when recruitment and retention is a big challenge for businesses.
But getting started can be tricky because implementing a routine change is a balancing act against customer service, meeting deadlines, holidays and cover at crucial operational times.
Indeed, when one boss, Gareth Hoyle, Managing Director at search engine marketing agency Marketing Signals in Altincham, used Linkedin to explain the practicalities and the pitfalls, the post went viral with four-day week curious business bosses eager to find out how he did it.
We’ve pulled together some expert advice to consider before getting started.
How do you make it work?
Dr Rita Fontinha, Associate Professor of International Business and Strategy at Henley Business School is one of the lead researchers of a 2022 white paper into the four-day week and the effects the pandemic had on flexible working.
Dr Fontinha said that the research had highlighted benefits for staff and businesses including cost savings and talent retention.
But she warned that there may also be short-term negative effects if the change is badly implemented and that may undermine future political will to undertake reform.
The tips are based on research into 500 companies and 1000 employees in November 2021 by Henley Business School. The lead researchers are Dr Rita Fontinha and Professor James Walker.
Four research-driven tips to make the four-day week a success:
- Plan ahead. Any four-day programme must have clear guidelines and management processes to maintain workplace harmony.
- Start slow. Based on our experience, we recommend that companies interested in implementing the policy start slow.
- Start small. Starting with a particular department or subsidiary for a limited time can be a good way to test the water and assess the impact of the four-day week, making sure that managers and employees are all on the same page.
- Keep track of outcomes. Carefully collate outcomes to illustrate benefits. This will help the wider roll out that is now happening in some companies. 40% of employees would be put off by the idea altogether if their employer didn’t provide adequate help in managing the implementation of a four-day week.
READ MORE: How to bring up the four-day week conversation at work
What are the legal considerations?
Stuart McBride, partner at UK law firm TLT has compiled this checklist for employers to consider:
- Employment contract consideration. A four-day working week is likely to involve a change to contracted hours as well as general job redesign – how are tasks going to be redistributed / organised? Are these changes allowed under flexibility clauses in employees’ contracts of employment? Note that even a wide flexibility clause (e.g. “we have the right to change this contract from time to time”) will be subject to the general duty to maintain an employee’s trust and confidence. This duty is implied into every employment contract. Lowest risk way of implementing changes is with express, written employee agreement.
- Paperwork. Any changes to contractual terms must be recorded in writing and a written statement of the change must be provided to the employee within one month, ideally signed by the employee.
- Equalities. Employers may need to undertake an audit of their workforce to check whether a four-day week has an adverse impact on workers with ‘protected characteristics’ under the Equality Act 2010. For example, if four longer days replace five standard days, this could cause problems with school or nursery pick-up times or may cause difficulties for employees with certain disabilities.
- Socio-economic disadvantage. Bear in mind that it is employees at the lower end of the pay scale who will be most economically disadvantaged if a reduced working week results in lower pay. However, social disadvantage does not attract any specific legal protections at present. It would be a matter of discussing any concerns with low-paid employees and considering whether it is possible to off-set the economic impact, maintain pay or allow certain employees to continue full-time work.
- Additional statutory protections may be triggered. Workers who shift to part time hours will be protected under the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 – they have the right not to be treated less favourably than comparable full time workers.
- What if the changes cannot be made under employees’ contracts and agreement cannot be reached? One way of breaking the deadlock is to use a ‘dismissal and re-engagement’ process. This involves terminating employees’ existing contracts of employment and then immediately re-offering the same job, but over four days per week. A strong business case is needed to underpin this process. In addition, a very specific procedure must be followed, possibly involving collective consultation/Trade Unions if large numbers of employees are affected.
Read more about alternative working
What model shall I choose?
Broadly, there are two models.
One involves an employee working reduced hours over four days with no reduction in pay. Their full- time employee status, NI contributions, pension and annual leave is unaffected,
The alternative approach involves an employee working a compressed week of longer hours over four days.
The 4-Day Week Campaign is piloting the 100:80:100 model – 100% pay for 80% hours with 100% productivity.
It lobbies for government support, states that the UK works longer hours than most of Europe, yet instead of making us more productive, we are more stressed and overworked.
Trials in Iceland between 2015-2019 proved very successful, with productivity remaining the same or improving in most workplaces. As a result, 86% of Iceland’s workforce has moved to shorter hours (albeit not all four-day working weeks) for the same pay or will get the right to do so.
Scotland is now trialling a four-day week without any loss of pay.
Is it all it’s cracked up to be?
While a four-day week will not suit every industry, there is no doubt that businesses are incorporating big shifts towards more flexible working models generally, including part-time working and working from home.
But it does have its critics – notably Lord Sugar who slammed PwC’s shorter summer working hours as ‘total joke ‘. And Phones 4 U Founder John Cauldwell has bemoaned working from home, arguing that it causes a lack of learning, a lack of motivation, a lack of interaction and excitement.
On the other hand, Sarah Walker-Smith, has argued the merits of home and flexible working.
She is the chief executive of law firm Shakespeare Martineau and its parent group Ampa, which also takes in the Marrons Planning consultancy, Lime solicitors and Corclaim, a national law firm specialising in recovering debts, assets and goods.
She said: “My particular view is that productivity has gone up because we now have the flexibility for people to work how they need to work to fit their jobs around their busy lives.”
And Attar Naderi, Associate Director Europe & MENA at software development company Laserfiche said that that the four-day week may not be flexible enough.
He said: “Since lockdown, we’ve seen another labour revolution as flexible, technology-supported working explodes in popularity. But while the four-day week grabs headlines, its fixed hours may still be too restrictive for some. If business leaders want to offer true flexibility, should they instead relax established shift patterns and let employees choose when they work?
“Ultimately, to discover what works best for your workforce, it may be worth trialling a period of flexible working—whether through subscribing to the four-day model, or even allowing employees to control their own diaries. You might find it to be one of your best workplace policies yet.”
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