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Labour's Flexible Work Plan: Four-Day Week on the Horizon?

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Labour proposes legislation for flexible working as default, including compressed hours. Companies can refuse if "not reasonably feasible". Debate ensues over productivity impacts and business concerns.

Labour is set to introduce legislation this autumn that could pave the way for more flexible working arrangements, including the possibility of a four-day work week. This initiative, part of a broader workers' rights package, is being spearheaded by Angela Rayner and Jonathan Reynolds.

Currently, employees have the right to request flexible working, but employers are not obligated to agree. Labour's proposal aims to shift this dynamic, making flexible working the default from day one of employment, unless it's "not reasonably feasible" for the company.

The concept of flexible working encompasses various arrangements, including:

  • Hybrid working (combining office and remote work)
  • Right to switch off (not responding to work communications after hours)
  • Compressed hours (working contracted hours in fewer days)

Compressed hours could effectively enable a four-day work week, allowing employees to work their full hours in four days instead of five. However, this differs from proposals where employees work 80% of their hours for the same pay.

"Making flexible working the default from day one for all workers, except where it is not reasonably feasible"

Labour's "Plan to Make Work Pay" document states:

It's important to note that certain professions, such as healthcare workers or teachers, may not be able to implement all forms of flexible working due to the nature of their roles.

Labour argues that flexible working could boost productivity and help tackle "worklessness" in the UK. However, the Conservative Party opposes these claims, with Kevin Hollinrake expressing concerns about the potential impact on businesses and economic growth.

Interestingly, the concept of a four-day work week isn't new. It dates back to the 1930s, and several countries have experimented with reduced working hours. For instance, Iceland conducted successful trials between 2015 and 2019, while Japan's government recommended a four-day week in 2021. Microsoft Japan reported a 40% productivity boost during a four-day week trial in 2019.

The COVID-19 pandemic has accelerated discussions on flexible working globally. In 2022, the UK conducted a large-scale four-day week trial, contributing to the ongoing debate. Some studies suggest that shorter work weeks can even reduce carbon emissions, adding an environmental dimension to the discussion.

If Labour takes office, they've promised to table this legislation within 100 days, meaning by mid-October 2024. However, implementation may not occur until 2025, as the party has emphasized the importance of consulting with businesses throughout the process.

As the debate continues, it's clear that the future of work in the UK could be on the brink of significant change. The outcome of this proposal could have far-reaching implications for workers, businesses, and the economy as a whole.

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