The UK’s six-month pilot of a four-day working week, without any reduction in pay, has come to an end. Census reported that in 2022, the average working week for full-time employees in the UK was 36.4 hours[1]. However, 61 companies and approximately 2,900 workers signed up for the pilot, which has created some discussion as to whether the traditional working model is still effective.

What did the pilot find?

In accordance with the Working Time Regulations 1998, employees should not work more than 48 hours per week on average, unless the employee decides to ‘opt out’. As we all know, time away from work is important to enabling employees to rest and recharge. Arguably, a four-day week allows employees to have a better work-life balance. It provides for an extra day per week to spend time with friends and family, carry out ‘life-admin’ and relax. But, what would this mean for employers? The findings from the pilot may help to determine whether the change would be beneficial for your company.

Retaining and attracting the best talent is imperative in a competitive job market and whilst the ramifications of ‘The Great Resignation’ are still being felt. Perhaps unsurprisingly, the pilot found that the number of staff leaving their jobs fell by 57% over the trial period. This suggests that staff may be happier in their job role and see the benefits of having reduced working days per week. Not only does this ensure you can keep your most valued employees, but it will also mean that recruitment costs are minimised. 

Whilst the four-day working week can seem particularly appealing to employees, employers may be concerned about the possible implications of losing eight hours per week of working time. Rightly so, but, the evidence shows that 55% of employees reported an increase in their productivity and business performance scored highly on two separate scales. The UK has struggled with labour productivity since the 2008-2009 global financial crisis, thus it begs the question of whether employers would need to recruit more employees to make up the time, or if the time constraints of a shorter working week are sufficient to ensure all work is completed in line with the company’s needs. 

In summary, the pilot, despite still being on a relatively small scale, seems to suggest that there are very few drawbacks and in fact, many positive effects; reduced burnout, reduced levels of anxiety and tiredness, increase in work-life balance, increased productivity and an increase in revenue.

What do employers need to consider before implementing a four-day working week?

• Holiday entitlement – It is important to consider whether you will keep holiday allowances as they are, or reduce them by 20% in light of the reduction of working days.  However, this may not be popular amongst staff if they find themselves working longer hours during the four days.

• Contractual changes – Any change in working pattern (and any change in holiday entitlement) will amount to a contractual variation and will need employee agreement. A “section 4 statement”, which details the changes, will also need to be given to the employee within one month of the changes taking effect. 

• Reversing changes - Be mindful of what should happen if the change to a four-day working week does not work out and the employer wants to revert back to a five-day working week. It will be important to be transparent to employees and seek to build in some flexibility in the amended contractual terms.           
   

  We recommend implementing a trial period, with the right to revert back to previous working days at the end of the trial, before making any permanent contractual changes.

• Working hours - Reducing the number of days in the working week, could result in staff working increased hours during those four days. Employers should therefore be mindful that staff continue to take adequate breaks and comply with the Working Time Regulations 1998. 

• Part-time workers –  Consider how any changes will impact part-time workers and ensure that they are not subject to any detriment compared to their full-time colleagues (whose working week has decreased). Is it practical for you to require part-time workers to also reduce their hours as well, or are they now working ‘full-time’ and pay should be increased to avoid any unfavourable treatment?

• Workplace policies - Review workplace policies to ensure that they continue to work in practice. Whilst the pilot results show no loss in productivity, this may only be possible if a clear policy is implemented regarding what is expected from employees. For example, productivity may be impacted if they are still required to complete the same quantity of work within a shorter timeframe. In addition, if a four-day working week is adopted, an employer should consider what format will be most appropriate for their industry and the nature of work carried out to ensure that they can productively continue to liaise with colleagues/clients/customers/organisations etc. Within the Pilot, companies were not restricted and were offered models such as Friday off, staggered, decentralised, annualised and conditional structures.

Be aware!

An important point to note is that clearly, this is not straightforward for all industries. Naturally, if corporate employees have a four-day working week, the hospitality industry is likely to have an increase in business. In an industry that is still bouncing back following Covid-19 lockdowns and facing significant staff shortages, it is questionable whether a four-day week currently is a practical option. (Although, that said, a reduced working week may be more attractive to employees and assist with any recruitment difficulties.) The same may be said for healthcare workers, who traditionally do not follow a 9-5 working routine.

Conclusion

Overall, 92% of organisations who took part in the pilot are continuing their four-day week. It is evident that Covid-19 has significantly changed the way in which we work, with flexibility and work-life balance being at the forefront of individuals’ minds. 

Is this something that your company has thought about implementing? If so, has the outcome of the pilot changed this?  You can find a copy of the Four Day Working Week Pilot report here: https://www.4dayweek.com/uk-pilot-results
 

[1] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/timeseries/ybuy/lms