With the recent need for at-home working during the pandemic, many businesses have seen that they can still operate at the same level of productivity while providing greater flexibility to staff.

Flexible working arrangements could be seen as a benefit for both prospective and current employees, and flexible working requests from existing staff might become more challenging for employers to refuse post-lockdown.

One option that is becoming increasingly popular is the four-day working week.

This generally means compressing the same number of hours into fewer days; or reducing hours to four days per week, but with the same level of worker productivity.

The Scottish Government has announced it is considering a trial of these arrangements and reportedly will commit a budget of £10m towards helping employers who wish to consider introducing this.

As employment law is not a devolved matter to the Scottish Government and it is still reserved to Westminster, Scotland could not legislate to introduce a mandatory system of four day working.

However, the approach to introducing this is most likely going to come down to individual business preferences with employee consultation (and agreement) and therefore a legislative intervention is unlikely to be required.

There are, of course, a few important factors to consider before jumping in.

Here are our top ten tips for employers on implementing a four-day working week:

1. Be clear on what you mean by a four-day working week

The first step is to determine what the expectation of hours worked will look like under a four-day working week.

This is about moving away from the old norms of monitoring working hours and instead to focus on measuring productivity.

Will staff be expected to work only 32 hours per week? Will they be required to continue to work 40 hours compressed in four days?

Once that decision is made, you must determine how staff will be compensated with pay – for 32 hours or 40 hours.

As you’ll imagine, these arrangements will be more attractive if employees have an opportunity to work fewer hours for the same pay.

2. Consult with staff

Moving to a four-day working week is quite a significant change, so it’s important that all staff (and, if relevant, their trade unions) are fully consulted and their opinions are taken into consideration.

This can be kicked off through workplace meetings or anonymous surveys. With the latter, employees are more likely to be open and honest with their feedback.

In order to implement the change, best practice is to over-communicate to get positive employee engagement and ultimately agreement to vary their contracts of employment.

3. Consult with clients

Just as organisations need to consult employees about a change to working hours, if the shift could impact clients or customers in any way then you might also wish to take soundings from clients.

Speaking to clients prior to any change and addressing any perceived concerns could go a long way to maintaining your working relationship.

4. Focus on productivity

Carefully consider whether it is possible to move to a four-day working week but maintain (or even increase) levels of productivity.

If the change negatively impacts productivity, then the whole project will likely fail.

This is where involving employees in the planning stage can be crucial.

Workers are often best-placed to determine how to measure their productivity and manage their workload.

Businesses can then create their policy and work schedules around this.

5. Don’t take a one-size-fits-all approach

From consultation or looking at staffing rates against output, it may be that a four-day working week is not feasible is some departments.

There may also be individuals who think they can better manage their workload by remaining on five days.

In response, businesses can introduce an opt-in policy on a quarterly or annual basis, meaning that employees can change their minds over time on what works best for them.

6. Consider staggering non-working days

Each business should consider internal and external demands and establish how best to maintain appropriate support.

We anticipate that most workplaces will want to remain operational for all five days of the week and will stagger non-working days to ensure there is cover each day.

Strategic scheduling will be required and businesses should decide whether they will fix the non-working days for each employee or give them free choice amongst themselves.

7. Run a trial FIRST

Businesses should always pilot the scheme, as this is an opportunity to evaluate the effects on productivity, and employees can see how successful they are in shifting their work to fewer days.

8. Get express agreement to contract changes

For workers on fixed hours, a reduction in their working week or pay will involve a contractual change.

Even where employers have the ability unilaterally to change contracts, it is advisable to consult with the employee and get their express agreement to changes of this nature.

This will help to maintain trust and confidence within the workforce and reduce the risk of claims for breach of contract or constructive dismissal.

9. Have a clear policy with contingency plans

How the four-day working week will operate should be clear to all staff.

The policy should be easily accessible and should cover how staff can opt-in and out, how staff find out when they are not working, whom they can discuss their options with and, importantly, how the policy can be changed by the business.

This last point is important, as the business must have contingency plans for reverting to a five-day working week if the new model proves unsuitable over time.

Flexibility works both ways.

10. Review regularly

Even if a four-day working week is initially successful, things could change when new recruits or clients come on-board.

Businesses have to keep an eye on their deliverables and ensure that there is continuity day-to-day.

If the policy does not work as hoped then it should be altered and reviewed again at a later date.

You can get more insight from our Law Lab webinar on the topic, where we were joined “in conversation” with Gillian Service, a partner at the leading law firm Minter Ellison Rudd Watts in Auckland, New Zealand, to discuss her experience of implementing the four day working week for clients.

Click here to watch the full interview.

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