The new Labour Government has today announced it is considering the introduction of a 4-day working week as part of its broader push for enhanced workers' rights. Under this proposal, employees would have the right to request a 4-day week through a flexible working request, potentially from day one of their employment if Labour’s other work plans are adopted.

While the idea of a shorter working week might seem appealing to many, it raises significant questions and challenges for UK businesses and in particular, SMEs. Here’s a closer look at how this policy could work and the issues it may create.

The proposed 4-day work week doesn’t mean reducing the number of hours worked. Instead, it would involve compressing the standard 35-40 hour workweek into four days instead of five. This means employees would work longer hours on the days they are in the office—typically around 9-10 hours per day.

For example, if an employee currently works 8 hours per day over 5 days, they would work 10 hours per day over 4 days under the new model. The total number of hours worked would remain the same, but spread over fewer days.

One of the biggest challenges this proposal presents is the need for many businesses to maintain operations over the full 5-day working week, if not seven days a week in some sectors. While some businesses might be able to stagger employees’ days off to ensure coverage, this won’t be feasible for all.

In customer-facing industries, such as retail, hospitality, and leisure, businesses rely on being open and staffed every day of the week. Compressing the workweek for employees in these sectors could lead to significant staffing challenges and potentially higher costs, as businesses might need to hire additional part-time or temporary staff to fill the gaps left by employees on their day off. Where demand is often highest on weekends, the need for consistent staffing levels throughout the week means that a 4-day work week might simply not be practical.

Similarly, in the care sector, where continuity of care is critical, reducing the number of working days could compromise the quality of service provided to clients.

Another concern for employers is the potential loss of the ‘goodwill’ hours that employees often contribute beyond their contracted hours. In many workplaces, it’s common for employees to start work a little early or stay late to finish tasks, without these hours being formally counted.

Under a compressed 4-day week, those extra hours would likely be absorbed into the longer working days. This could result in employees being less willing or able to extend their workday beyond the required hours, as they may already be working close to their maximum capacity each day. For employers, this could mean a reduction in overall productivity or the need to adjust expectations around the completion of work.

The proposal for a 4-day work week, as part of the Labour Work Plan and a broader push for flexible working rights, could bring benefits to employees in terms of improved work-life balance and reduced burnout. However, for businesses, particularly those requiring consistent 5- or 7-day coverage, the challenges are significant.

Although the Government have promised not to impose the idea, employers may feel pressured into implementing it in order to remain competitive to new talent. They will need to carefully consider how they can maintain operational efficiency and productivity if such a policy is implemented.

While some industries might adapt to this change by restructuring work patterns or hiring additional staff, others may find it difficult to accommodate such flexibility without compromising service levels or incurring additional costs. As the conversation around a 4-day work week continues, it’s clear that there is no one-size-fits-all solution, and businesses will need to weigh the pros and cons carefully before making any changes to their work arrangements.

The 4-day week is on of a raft of measures and proposals being floated by the New Labour Government. Make sure you attend our seminars and breakfast meetings where we will be covering the impact and implications they hold for UK businesses.

For support and advice with any issues raised contact us on 01452 331331 or reach us through our contact page.