What is a Four-Day Work Week?

Countries like Japan, Iceland, and New Zealand are just some of the few who are trailing a four-day work week in some of their businesses. The change was a welcomed choice by many due to its benefits, particularly encouraging a better work-life balance.

However, employers must comply with relevant legislation relating to changing work hours before making any amendments. Neglect this and you could end up facing lost earnings, job dissatisfaction, and staff turnover.

In this guide, we’ll look at what a four-day working week is, what the laws cover, and what the pros and cons of implementing this working arrangement into your business.

What is a four-day work week?

A four-day work week is the period where employees complete their job duties in four days, rather than the traditional five.

• Employees work four days a week without facing a loss in salary.

What is the law on four-day work weeks?

As of 2024, there isn’t a law that outlines the rules on four-day work weeks.

Full-time employees can already request the right to a four-day working week from their first day of employment. They must still complete their contracted work hours to receive their full pay. However, their hours are compressed into a shorter week.

In April 2024, workers were given the right to request flexible working as soon as they start their job. However, employers aren’t legally required to accept them. They should instead make informed and reasonable decisions based on individual cases.

What are the benefits of a four-day work week?

There are numerous benefits, for employees and businesses, which come from a four-day work week. Let’s take a look at a few:

Boosts recruitment numbers

One of the main advantages of a four-day work week is that it attracts potential candidates. Since the COVID-19 pandemic, people are continuously looking for jobs that promote a better work-life balance, and that includes flexibility.

By promoting work flexibility, businesses can easily reach a wider range of potential applicants, as well as retain valuable employees.

Increases work productivity

Employees who work through the four-day arrangement are considerably happier and focused on their work duties. They aspire to complete their tasks within their set days; and many look forward to enjoying their time away from work.

Whilst it might seem like four days are too short to complete five days’ worth of work. They may receive alternative tasks and deadlines which are more suitable for this working format.

Improves wellbeing

It’s crucial for all workers to acknowledge the importance of having a good work-life balance. This means being able to complete work duties within a reasonable time, without it affecting their personal hours.

Having an extra workday can help reduce all kinds of work-related health issues. The most common ones include anxiety, stress, depression, and burnout. Employees can use free time to rest, exercise, or spend time with their friends, family, and loved ones.

Reduces utility costs

Businesses that are run on four days a week benefit from maintenance savings. It might seem like one day can’t have that much influence; but this is one day – per week - across an entire working year.

Some of the most common savings comes through utility bills; water, gas, and electricity bills are the main ones. But businesses can make huge savings through general supplies used in kitchens and bathrooms.

Practice sustainability

It might seem implausible, but four-day working weeks can help businesses practice sustainability. Less workdays equates to less employees commuting per day – reducing their carbon footprint.

Less people will be driving or using public transport to get to work, which results in lower carbon emissions overall. Overall, four-day work weeks are beneficial when it comes to practicing environmental awareness.

What are the downsides of a four-day work week?

Whilst the pros might seem tempting, it’s important not to ignore negatives. Some of the biggest downsides of four-day work weeks include:

This might prove difficult for those who struggle with compressing five days’ worth of work into four.

If it’s not managed well, employees could suffer from poor wellbeing, low morale, and lost productivity. In the end, employees are left feeling dissatisfied with their job and may decide to resign from their job.

Reduction in work productivity

Work hours, tasks, and deadlines are usually agreed to before initiating a four-day working week. However, dealing with the reality of the change can leave employees struggling to keep up.

With the pressure of completing tasks, employees may produce incomplete or unsatisfactory work. They could also suffer from stress and burnout – resulting in poor employee wellbeing.

Decrease in customer satisfaction

Continuing from the previous, poor productivity and output can lead to a decrease in customer satisfaction. This usually derives from a lack in service and support from the business they trusted and invested in.

Some businesses have invested in technology to assist with managing customer services. However, some prefer human assistance over technology. In the end, customers are left frustrated and disappointed with the services.

Possible additional costs

Whilst making financial savings is possible, the four-day working week arrangement can also lead to potential hidden expenses some businesses might not have considered before.

Employers may incur additional costs through paying overtime or hiring agency staff to assist during busy hours. Remember, these aren’t one-off events; they’re weekly occurrences that can last the entire working year.

Not suitable for all businesses 

Regardless of what competitors are using, the four-day working week arrangement isn’t suitable for all businesses. For example, industries like transportation, hospitality, and care, might not find the arrangement suitable.

That’s because they often run seven days a week or on a 24/7 basis. In the end, such businesses may suffer from staff shortages and lack of customer satisfaction.

Get expert advice on four-day work weeks with Peninsula

Every employer wants their staff to work in a happy and healthy manner. This comes from having a great personal and professional balance – which can be attainable through working four days a week.

Remember, this arrangement comes with its own legal requirements which employers must adhere to. If not, you could end up underpaying, overworking, and burning out your valuable employees.

Peninsula offers expert advice for companies with four-day work weeks. We offer 24-hour HR advice – helping you deal with all payment entitlements. You can also download our free annual leave and holiday pay guide for further information.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.