Businesses react to the Government’s four day week plans

Many businesses of all sizes were rightly concerned when they read reports that the government was proposing a new law under which workers were to be given new rights to demand a four day week.

And it appeared that the new legislation planned for October may include the system of “compressed” hours allowing an employee to work their contracted week’s hours in four days rather than five.

It all sounded pretty scary at first reading, but I think we must not jump to too many quick conclusions and businesses should not rush to judgement. This process has a way to run yet. 

However, any attempt to legally impose restrictive employee changes without business buy in would be out of order and in nobody’s interests.

What will work, and is already working, is agreed flexible working which is vital to get more people, especially Mums, wanting to return to work.

At the heart of this ongoing debate for companies, of course, is the end product from any new government legislation on employment. And that end product must be increased productivity.

This is the argument put forward to justify any change by Baroness Smith, the education minister, who insisted that despite an initial backlash, a four day week could boost output. And whilst the jury is still very much out on that, many companies are already operating flexible working due to staff and skills shortages, particularly after Covid.

If we are to get anywhere near the government’s holy grail of economic growth, we need business and their employees working in tandem to be successful. It will not be achieved if government simply impose employment restrictions.