Angela Rayner, the Deputy Prime Minister, is spearheading a new workers' rights package set to be introduced this autumn. The legislation aims to grant employees enhanced flexibility in their work arrangements, including the option to request a four-day workweek.
The proposed law will introduce the concept of "compressed hours," allowing workers to complete their contracted weekly hours over four days instead of five. This shift represents a significant change in the balance of power between employees and employers.
Currently, UK workers have the right to request flexible working, but companies are not obligated to agree. The new legislation will require businesses to offer flexible working options from the first day of employment, except when it is "not reasonably feasible."
Critics, including Kevin Hollinrake, the Conservative shadow business secretary, have expressed concerns about the potential impact on businesses and economic growth. Hollinrake stated, "Labour must listen to businesses who are petrified about day one employment rights and bringing in the four-day week through the back door."
However, Labour sources defend the proposal, citing studies that suggest flexible working can improve productivity. They argue that options like compressed hours and term-time working can support workforce retention, particularly for parents and those with caregiving responsibilities.
The concept of a four-day workweek is not new. In fact, it was first proposed by economist John Maynard Keynes in the 1930s. Since then, various countries and companies have experimented with reduced working hours. For instance, Iceland conducted a large-scale trial between 2015 and 2019, involving 1% of its workforce, while Microsoft Japan reported a 40% productivity increase during a four-day workweek trial in 2019.
The UK itself has been at the forefront of flexible working initiatives. In 2003, the country introduced the right to request flexible working, initially for parents and carers. The COVID-19 pandemic has further accelerated the adoption of flexible working arrangements globally.
Labour's plan, dubbed "Plan to Make Work Pay," has been developed in consultation with trade unions and businesses. The party aims to submit draft legislation to Parliament within 100 days of the election, by mid-October 2024.
While the specific details of the legislation are yet to be finalized, it is expected to shift the burden from companies opting into flexible working to having to opt out for specific reasons. This approach aligns with the European Union's Working Time Directive, introduced in 1993, which sets limits on working hours and mandates rest periods.
As the debate continues, it's clear that the concept of work-life balance, first coined in the UK in the late 1970s, remains a crucial issue in modern labor discussions. The outcome of this legislation could potentially reshape the UK's working landscape for years to come.