Less hours for more productivity? The UK trials a 4 day working week

The Change

This month employers in the UK started the world’s biggest 4 day working week trial. The trial is being run for six months and has been organised by the thinktank Autonomy, the 4 Day Week Campaign, and researchers at Cambridge University, Oxford University, and Boston College. More than 3,300 workers at 70 UK companies over a range of sectors will participate in the trial which will take place over six months. Companies will use the 100:80:100 model – 100% of the pay, 80% of the time, and 100% productivity. Workers will receive the same amount of pay for less hours, and a commitment to 100% productivity. Companies participating in the trial will work with researchers to measure the impact on productivity, wellbeing of workers, and the impact on the environment and gender equality.

Implementation

The 4 day work week is being implemented using two methods. The first sees the company overall shift to a 4 day week with all employees working the same days. The second sees employees work a two day rotation of shifts. This is likely to be more common in the service industry, where there is a demand for services throughout the week.

Benefits

The COVID-19 Pandemic has brought about a shift in attitude to the traditional working week, with flexible options now far more common. Many employees and companies no longer believe that the traditional working week provides the best outcomes. Advocates of the 4 day week believe the change would benefit both workers and employers. Workers would have a better work-life balance leading to higher productivity during working hours. A previous trial that took place in Iceland and involved 2,500 public sector workers found no corresponding drop in productivity and an increase in employee well-being. Employers could see a reduction in costs from the plan.

Legal Implications

Changes to the working hours will naturally require amendments to employment contracts to reflect the reduced hours. There may also be an associated reduction in holiday allowances to reflect the overall reduction in working hours. There are also existing part time employees to consider. For these employees, the 4 Day Week Campaign suggests several options, including adjusting to increases in pay arising from the reduction in working time, reducing hours in line with the reductions other employees will have, and adjusting annual leave entitlement. While an official change in the working week is unlikely to happen soon, it is an idea companies may want to explore to lead to greater productivity and lower costs.

By Kulsum Gulamhusein, Legal Intern