91̽»¨

The newly formed Labour government is considering increased flexibility, the right to disconnect and a proposal for a four-day working week for workers. This is all part of the overall upgrade to workers’ rights they promised in their manifesto. There is not long to wait before further details are delivered in the widely anticipated Employment Rights Bill in October.

Further increases to flexibility, structural changes to the working week and the right to disconnect could be challenging for businesses. For those in start-up and growth stages, these initiatives are unlikely to be easily accommodated.

For businesses, one of the challenges will be reorganising efficiently so that corporate objectives are not negatively impacted. Deals flow, cases run and production continues regardless. Targets must be met, so added consideration will need to be given to how a four-day working week (and similar work-life balance initiatives) would impact organisations and the services they offer.

The four-day working week in Europe

However, it’s not just the new Labour government looking at a four-day working week: Belgium passed similar legislation in 2022. Belgium’s new rules give workers the right to demand compressing their five-day working week down to four. As reported in the Sunday Times, it may be too soon to draw conclusions as this only came into effect in November 2023, but there has been no rush to take up the option.

In 2017, France implemented a right to disconnect for workers in companies with over 50 employees. Hopefully, the government will take note. At the other end of the scale, Greece has just increased the working week to six days from 1 July 2024. The country’s pro-business government has allowed companies in some industries to make staff work a six-day working week in return for additional pay. This only applies to the private sector and for businesses that need to provide round-the-clock services. Greece’s food and tourism sectors were already allowed to add the extra day.

Supporters of the four-day working week cite increased productivity and lower burnout, but the supermarket Asda recently shelved its pilot of the four-day working week. It asked workers to cram their 44 hours into four days, which led to employees reporting that they felt burnt-out on their day off. Some research suggests five manageable days over four compressed days is less stressful.

Increased outsourcing may be downside for workers

Employers will need to consider the implications if the government does push on with its support of added flexibility, four-day working weeks and the right to disconnect. Some organisations may decide it could work well for them and set up shift patterns to operate successfully under this new model, or they could decide to implement more job shares to accommodate. One downside for the government could be that employers look for more flexible working arrangements outside of the traditional employee and worker models to fulfil their business goals. Some may consider more outsourcing or the use of agencies instead of continuing to increase their own headcount.

While it all sounds great for workers on paper, the reality is this could create even more red tape for businesses, which will be particularly onerous for smaller companies. The UK economy needs to grow this year, and bureaucracy around working hours and disconnection is not necessarily aligned to a growing economy. The government has a balancing act to achieve improved worker protection while also helping to create the right environment for UK businesses to thrive and take risks to grow.

Over the next few months, we will be writing about the new Employment Rights Bill, and we will keep you updated via Employment Matters.

If you are concerned about any of the issues raised, please get in touch with Kerri Constable or your usual 91̽»¨contact for a discussion.