On 6 June 2022, 61 companies and approximately 2,900 workers across the UK began a six-month trial of a four-day working week. The pilot scheme, led by 4 Day Week Global, is based on the 100-80-100™ model – 100% of the pay, for 80% of the time, in exchange for a commitment to 100% output.
Employers across a wide variety of industries took part in the pilot, including a London-based insurance firm, Environmental Consultants in Somerset, a housing association in Merthyr Tydfil and a Fish and Chip shop in Norfolk. A variety of four-day week models were trialled, each tailored to the needs of the business and nature of the industry, from the classic “Friday off” to “staggered”, “decentralised”, “annualised” and “conditional structures”.
Now, nearly one year on from the pilot scheme kicking off, we reflect on the results of the trial, and the employment law implications of a four-day working week in the future.
Published in February 2023, the pilot scheme’s headline results were as follows:
- 92% of organisations are continuing with a 4-day week, with nearly 30% confirming the policy is a permanent change.
- 39% of employees were less stressed.
- 71% of employees had reduced levels of burnout at the end of the trial.
- 54% of employees said it was easier to balance work with household jobs.
- 60% of employees found an increased ability to combine paid work with care responsibilities.
- 62% of employees reported it was easier to combine work with social life.
- Company revenue stayed broadly the same over the trial, rising by 1.4% on average.
Although there is no doubt that the pilot scheme has been a resounding success, it is worth noting that many of the UK participants were smaller sized business: 66% of the trial companies had fewer than 25 employees with only 12% having over 100 employees, and no “big name” employers taking part. The 4-day week has therefore not been assessed on a large scale.
It may also be the case that the 4-day week model will work far better for some business models than others, often dictated by the specific industry. For example, participants in the six-month pilot scheme were largely from creative industries and not for profit organisations. There may be distinct challenges faced by sectors such as legal, finance, emergency services, public transport and hospitality, as well as by those who work shift patterns, weekends, or part-time, that have not yet been tried and tested.
From an employment law perspective, there are also a number of considerations for companies, particularly those with workers that do not currently work a Monday to Friday pattern:
- Contract Variation. The introduction of a 4-day week is likely to require adjustments to multiple areas of the employment contract, including the working hours clause. Employers need to gain consent from employees in order to implement a contractual change.
- Holiday Entitlement. If employers keep the standard 37.5 hour working week, employees’ holiday allowance won’t need to be adjusted. However, as would be the case in the 100-80-100™ model, if employees are working less hours each working week, holiday entitlement will likely need to be re-calculated.
- Working Time Regulations. A 4-day week may mean that staff are busier during their working days, and therefore working more hours. Employers should make sure that staff continue to take sufficient breaks in order comply with the Working Time Regulations 1998.
- Part-time worker detriment and indirect discrimination. Employers will need to be careful that a 4-day working week policy does not mean part-time workers suffer a detriment, such as if full-time employees work the same or similar hours as they do but receive greater pay or holiday allowance. This may also give rise to indirect sex discrimination or equal pay claims, as it remains the case that the majority of part-time workers across the UK are women.
- Reversing the changes. Employers would be well advised to draft-in the ability to reverse the changes to any updated contract, which may become necessary if the market shifts and the needs of the business ultimately dictate that the 4 day working week is not sustainable in the future. That said, there will still be the risk of constructive dismissal claims (from qualifying employees) and discrimination claims, so any reversal would need to be actioned carefully.
It is certain that a 4-day week has significant benefits to employee health and wellbeing, engagement and productivity. However, this is not a “one-size-fits-all” framework, and it may be that some industries simply cannot adopt this model. For those that can, any shift is likely to be gradual, and best practice would be to run a trial period before making any permanent contractual changes.
If you are considering implementing the 4-day week model into your business and would like to discuss the employment law implications of this, feel free to get in touch with the team.
Jones Chase is a specialist employment law firm based in the centre of London with an excellent track record of looking after those that we assist.
Feel free to contact us should you require further information or need any assistance. We are always happy to speak to people and point them in the right direction.