Friday, 30th August 2024Will a four‑day working week become a worker’s right?
An article published in The Telegraph late last night (29 August 2024) regarding Labour plans for a four-day working week has received plenty of coverage from many news and media outlets today and speculation as to exactly what such a package could entail.
The contents of any plans for legislative change are just that – speculation – at this stage and will likely remain that way until October 2024 and the release of the government’s draft Employment Rights Bill, which will then be consulted on. This Bill should cover a number of Labour’s ‘Make Work Pay’ employment law proposals, some of which we covered in our article in June earlier this year.
Labour’s four-day working week plans appear to comprise of compressing contracted working hours into fewer working days, i.e. for an employee who works 8 hours a day for five days (40 hours a week), they could then compress their hours by working 10 hours a day for four days. Employees would still receive the same full pay.
This is nothing new and employees have been able to request such compressed hours for years under the statutory flexible working regime, and which employees have been able to do from the first day of employment since earlier this year (6 April 2024). The right to request flexible working consists of an employee making a written request, the employer then having two months to consider the request, consult with the employee, and inform them of the outcome, dealing with the request in a reasonable manner. If the employer refuses the request, they must do so for at least one of eight prescribed reasons. If the employee disagrees, they can make a tribunal claim. Employees are limited to two flexible working requests in a 12 month period.
The concept of four-day working weeks is also not unheard of. These have been trialled by a number of firms and companies over the past two years, with mixed results and employers and employees split as to the benefits and drawbacks.
It therefore remains to be seen what the government’s plans are in respect of compressed hours working and how the law in this area may be changed or strengthened. Currently, the possible compensation that the tribunal can award in the event of a breach is low (8 weeks’ pay), so this may be raised. Alternatively (or additionally), the tribunal’s ability to scrutinise the employer’s decisions may be enhanced. Currently, a tribunal cannot question commercial or business decisions for a request being refused, nor can they form their own view as to whether the request should have been granted or not. Their review is limited strictly to the employer’s following of the statutory procedure only, so their remit may be extended in this regard.
For businesses and employees, there is no change at this stage. It is very much a case of watch this space for October 2024 and the months of consultation that follow.
If you require further information about anything covered in this briefing, please contact William Gubbins or your usual contact at the firm on +44 (0)20 7526 6000.
This article is for general purpose and guidance only and does not constitute legal advice. It should not replace legal advice tailored to your specific circumstances.
