Workers are set to gain new rights to request a four-day week under a law expected to be introduced this autumn.
According to The Telegraph, the legislation will include a system of “compressed hours,” allowing employees to work their full contracted hours over four days instead of five.
This proposal will be part of a broader package of new workers’ rights being championed by Deputy Prime Minister Angela Rayner, in close collaboration with trade unions.
It means British workers could soon have much stronger rights to push their bosses into agreeing to a four-day workweek, allowing them to complete their full week’s hours from Monday to Thursday and take Friday off.
The Conservatives have sounded the alarm, accusing Labour of undermining its own pledge to prioritise economic growth and warning that this move will leave businesses “petrified.”
Kevin Hollinrake, the Conservative shadow business secretary, blasted the plan, saying:
“Despite repeated warnings from industry, Angela Rayner is charging ahead with her French-style union laws that will make doing business more costly in the UK.
“Labour needs to heed the fears of businesses, who are terrified about day-one employment rights and sneaking in the four-day week through the back door. If they don’t listen, it’s businesses and consumers who will foot the bill, and economic growth that will take the hit.”
Critics also argue that a four-day workweek could lead to staff shortages and reduced service availability in critical areas. For example, the NHS, already under significant strain, could face additional challenges if healthcare workers moved to a four-day schedule without a corresponding increase in staff. Similarly, in education, there are concerns that a shorter workweek could disrupt students’ learning and lead to logistical issues for parents.
Businesses have also voiced concerns that a four-day workweek will be detrimental to the UK economy, citing a negative impact on productivity, costs, and overall economic competitiveness.
The Confederation of British Industry (CBI) has said a four-day workweek will increase costs for businesses, particularly if they are required to maintain the same level of output with fewer working hours. They argue that this could lead to higher wage bills or reduced productivity, especially in industries that require continuous operation.
The Institute of Directors (IoD) has expressed similar concerns, suggesting that it would be particularly challenging for businesses that rely on client-facing roles or need to provide services over a full week.
Mark Littlewood, PopCon Director and former Director General of the Institute of Economic Affairs (IEA), said:
“The four-day workweek is a utopian idea that, if implemented indiscriminately, could harm businesses, especially smaller ones. For some sectors, reducing hours would necessitate hiring more staff, which would increase costs and potentially drive prices up for consumers.”
Lord David Frost, the former Brexit Minister, added:
“A four-day workweek might seem attractive on paper, but the reality is that it could undermine our competitiveness at a time when the UK needs to be more agile and productive in the global economy.”
The four-day workweek isn’t a new idea. In fact, it has been trialled across the world.
In 2013, Gambia introduced a four-day workweek for public sector workers, with Fridays off, as part of a policy to align the workweek more closely with traditional prayer days. The trial faced significant challenges, including concerns about the impact on public services, particularly in health and education. Many citizens and workers found the new schedule disruptive, and there were reports of decreased productivity. The policy was eventually reversed by a subsequent government in 2017, returning to a five-day workweek.
In 2021, the town of Guysborough in Nova Scotia, Canada, conducted a pilot programme where municipal employees worked a four-day week. The trial aimed to improve work-life balance and job satisfaction. While some workers appreciated the extra day off, others found it challenging to complete their workload in four days, leading to increased stress. Additionally, there were concerns about the availability of municipal services, as the reduced workweek meant that offices were closed for an additional day, which would inconvenience residents. The programme was subsequently dropped.
In the United States, some companies that experimented with a four-day workweek found that it did not suit their business needs. For instance, in industries requiring continuous customer service or where work is highly collaborative, the reduced hours led to challenges in maintaining productivity and meeting client demands. Some employees also reported that compressing their work into four days led to increased stress and longer working hours on those days, which undermined the intended benefits of the shorter workweek. The pressure to maintain the same level of output in fewer days sometimes resulted in burnout rather than improved work-life balance.
In Denmark, several municipalities have experimented with a four-day workweek for public sector employees. The idea was to improve work-life balance and reduce burnout among public servants. While some employees enjoyed the extra day off, the trials revealed significant challenges, particularly in maintaining service levels. Public feedback indicated dissatisfaction with reduced access to municipal services, and there were concerns about the strain on employees who had to compress their work into fewer days.
While not a direct four-day workweek, France’s reduction of the workweek to 35 hours in 2000 also serves as a related example. The policy was intended to reduce unemployment by sharing work hours across more employees. The 35-hour workweek faced significant criticism from employers, who found it difficult to maintain productivity with reduced hours. Many companies reported that they had to increase overtime, leading to higher costs. Some workers also found the shorter workweek more stressful, as they were expected to maintain the same level of output in fewer hours.
In the 1990s, Volkswagen in Germany implemented a four-day workweek as a way to avoid layoffs during an economic downturn. Employees worked four days instead of five, with a reduction in pay.
Although the measure helped save jobs, it was not considered a long-term solution. The reduced workweek led to lower earnings for workers and challenges in maintaining production levels. The four-day workweek was eventually phased out as the economic situation improved.
Julian Jessop, the former Chief Economist at the Institute of Economic Affairs (IEA), concludes:
“While a four-day workweek might sound appealing, the reality is that it could lead to reduced economic output if productivity gains do not fully compensate for the lost day. For many businesses, particularly in the service sector, it’s simply not practical.”
CONSERVATIVE POST COMMENT: Arguments against implementing a four-day workweek are as follows:
1. Economic Impact
- Reduced Productivity: A four-day workweek could lead to a decrease in overall productivity. Compressing the same amount of work into fewer days could either overwhelm employees or result in less work getting done, particularly in industries where continuous operation is crucial.
- Cost to Businesses: There is concern that a four-day workweek could increase costs for businesses. For example, if businesses need to hire additional staff to cover the same amount of work over fewer days, this could lead to higher wage bills. Small businesses, in particular, might struggle to absorb these costs.
- Global Competitiveness: Critics argue that reducing the workweek could harm the UK’s competitiveness on the global stage. They believe that other countries with longer workweeks might outpace the UK in terms of economic growth, innovation, and output, making it harder for British businesses to compete internationally.
2. Impact on Public Services
- Strain on Public Services: There is concern that a four-day workweek could strain public services, such as healthcare, education, and emergency services. Reducing the number of working days might lead to longer waiting times for services or require additional staffing, which could increase public sector costs.
- Disruption to Essential Services: In sectors where continuous operation is essential, such as healthcare or transportation, a four-day workweek could lead to logistical challenges. Critics worry that these challenges could disrupt essential services, leading to poorer outcomes for the public.
3. Potential for Increased Costs
- Wage Inflation: Some argue that moving to a four-day workweek could lead to demands for higher wages, as workers might expect to be compensated at the same level for fewer hours. This could lead to wage inflation, increasing costs for businesses and potentially contributing to overall inflation in the economy.
- Operational Costs: For businesses that need to maintain operations five or more days a week, a four-day workweek could mean increased operational costs. This might include higher overtime payments or the need to invest in automation or other technologies to maintain output.
4. Inequality Concerns
- Unequal Benefits: Critics argue that the benefits of a four-day workweek might not be equally distributed across all sectors and workers. While some professionals in office-based jobs might be able to adapt to a shorter workweek, workers in manual labor, retail, or customer service roles might not experience the same flexibility. This could lead to increased inequality, with some workers benefiting while others face the same pressures as before.
5. Potential Impact on Work Culture
- Work-Life Balance Issues: While a four-day workweek is often promoted as a way to improve work-life balance, some worry that it could have the opposite effect. For instance, compressing work into fewer days could lead to longer hours on those days, resulting in burnout and stress for workers.
- Cultural Shift: There is concern that a shift to a four-day workweek could lead to a broader cultural shift in attitudes towards work and productivity. Critics argue that it could undermine the work ethic and reduce the sense of responsibility and commitment to work, particularly in industries that require a high level of dedication and focus.
