Labour’s four-day week isn’t the real deal

Full-time workers in the UK could soon be given the right to request a four-day working week (4DWW) as the government leans on flexible working to improve productivity.

The 4DWW is a hotly-contested issue and the news, which was first shared by the Daily Telegraph, has proved emotive. Conservative shadow business secretary Kevin Hollinrake claimed businesses were “petrified” about the plans.

If true, their concerns might be misplaced. What Labour appears to be suggesting is actually a compressed workweek, a work policy that is commonly confused with the four-day week.

While both technically result in a day off for workers, trials suggest that a compressed week can actually result in negative repercussions for employee engagement, rather than positive.

Four-day week vs. compressed hours

The difference between a 4DWW and a compressed workweek has caught many employers out this year. Under a four-day week, as certified by the 4 Day Week Campaign full-time staff work 80% of their hours, but receive the same pay.

The government is reportedly proposing what is known as compressed hours. Under this policy, staff work 100% of their hours but over longer shifts, also for the same pay.

In 2022, Startups’ employee survey showed that UK workers were also confused. Our findings suggest that, while most were still in favour of the policy, 70% of employees believed they would need to work extra hours to make up for lost time.

Asda failure

At first glance, the difference between a compressed workweek and a 4DWW seems small. However, the repercussions for the workforce can be huge; as Asda discovered this year.

The grocery retailer trialled a compressed workweek last year. Managers were allowed to work 44 hours over the course of four days for the same pay. However, staff complained about having to work 11-hour shifts, forcing the supermarket to roll back the perk.

Another retail giant, Morrisons also axed a 4DWW for its head office staff, after staff complained about having to work Saturdays to make the policy work.

Numerous flexible working trials where employees work reduced hours over a four-day week, for the same pay, have succeeded since. South Cambridgeshire district council said its 4DWW test run resulted overwhelmingly in improved employee performance.

The gap between Asda and Morrisons, and the many UK firms that have successfully introduced a four-day week, suggests that compressed hours may not have the positive effect on staff wellbeing that the government hopes for.

Why a four-day week?

The suggested 4DWW policy reflects changing attitudes towards the traditional 9-5. Last year, Startups surveyed 546 SMEs about their opinions on the 4DWW. We uncovered a huge appetite for the perk; 12% of UK businesses said they planned to adopt it in 2024.

Numerous factors are influencing this cultural shift. More employees are reporting stress and burnout, resulting in many leaving the workforce.

Those who do show up to the office often engage in presenteeism (showing up to look busy, but actually doing the bare minimum). Last week, Keir Starmer suggested the government would explore flexible working to tackle the problem.

Flexible work arrangements have been shown to improve work-life balance by giving employees the right to switch off, which can boost productivity levels.

Ironically, though, compressed hours could make things worse. As Asda and Morrisons discovered, forcing staff to work longer shifts is likely to raise, not lower, stress levels.

What could the new rules look like?

Implementing a four-day week requires a careful hand, and it’s understandable that companies might feel worried at the proposed law change.

However, the new policy will likely take a similar shape to the Flexible Working Bill, a set of legislation that allows employees to request flexible working from day one of employment.

Under the bill, employers can still refuse a request if they feel it is unreasonable. Ministers have confirmed that the 4DWW rules would not impose the change on staff or businesses, suggesting that organisations could choose for themselves whether to accept a request.

“Any changes to employment legislation will be consulted on, working in partnership with business,” said a spokesperson at the Department for Business and Trade.

Employers should visit the Startups.co.uk website to keep an eye on employment law changes. We’ll cover them, and their impact on businesses, right here.