There’s nothing to fear from the four-day week – and employers know it

Could ‘compressed’ hours help Britain to overcome its endemic productivity problem, asks James Moore

Under new laws being considered by Labour, employees will have the right to request a ‘compressed’ four-day working week (PA Wire)

Opponents of the government’s proposals for a four-day week – part of its “Make Work Pay” initiative, which will be unveiled in Parliament this autumn – have been busy conjuring up images of France. Many already work to this schedule – and unemployment runs to 7.5 per cent, significantly higher than the EU average of 6 per cent.

In the UK, unemployment is just 4.3 per cent. Proponents of our “flexible” labour market, which imposes fewer rules on employers and makes it easier for businesses to fire workers, typically cite this as a win.

The question is: would Labour’s four-day week change all that?

First of all, it’s worth pointing out that the government has flatly denied any plans to impose plans for a four-day week upon employers – or employees, for that matter. It would be a surprise if it did. The government’s official position on the possibility of a four-day week is that “any changes to employment legislation will be consulted on, working in partnership with business”.

“Our Make Work Pay plan is designed around increasing productivity and creating the right conditions for businesses to support sustained economic growth. Many employers already provide good, family-friendly conditions for their workers because they know that doing so improves morale and retention,” said a spokesperson for Jonathan Reynolds’ business department, which is officially leading on this but is also championed by deputy prime minister, Angela Rayner.

That being said, the concept does have many points in its favour. In its 2022 report on the four-day week, the Chartered Institute for Personnel & Development (CIPD), which represents HR professionals, found that more employers (39 per cent) agree than disagree (30 per cent) with the idea that moving to it would boost productivity. I’ve also previously spoken to employers that have adopted it and found it to be positive.

However, not all of those involved in a recent trial adopted it full-time, and an experiment involving head office staff by Morrisons was abandoned “following consultations with staff”. Partly that was because it involved some Saturday working, which proved unpopular. Critics said this meant it wasn’t a “true four-day week”.

Clearly, this is a complex issue, and adopting four-day working would be far more complicated in some workplaces than in others. The NHS could be one example, although the benefits from compressing the working week into four days over the long term is certainly something worthy of discussion. A happier workforce might improve the patient experience.

It is also worth pointing out that flexible working – of which the four-day week is a part – can greatly assist the ability of marginalised groups to access the workplace. That includes women, who still tend to do the lion’s share of childcare, and disabled people, such as myself.

“If homeworking made us question where work took place, the four-day week trials could make us question when it takes place,” the CIPD said in its report. “However, to implement a collective move to a four-day week, businesses would need a compensating 25 per cent rise in worker productivity to offset the loss of working time and maintain output. The ability to achieve such a huge rise is as yet unproven.”

Perhaps, but it is also worth pointing out that while British work hours are high by European standards, its productivity is not. Per the House of the Commons library, the average French worker produces $93 an hour compared to Britain’s $80. Interestingly, the figure for Japan, infamous for its long-hours culture, is $57 – proof that presenteeism doesn’t necessarily equal productivity.

I suspect that the plans will ultimately amount to a nudge in the direction of more flexible working, which may serve to accelerate a trend that employers and employees alike benefit from. Even if this involves a “right to request” a four-day week, employers will retain the right to say no, just as they do now with respect to flexible working.

In any case, the idea that the UK will suddenly collapse and we’ll all lose our jobs because Ms Rayner is on a crusade is really for the birds.

Don’t forget that the market will have a say, too. In recent years, Britain’s unemployment rate has been inching higher. But it remains – in the Bank of England’s words – “tight, by historic standards”.

In other words, employers still often struggle to find workers. Those more open to flexible working, even a four-day week, while establishing a reputation as good employers, will triumph over those that don’t.