A four-day working week could soon become the norm under government plans to strengthen flexible working rights.

Compressed hours, allowing employees to work their contracted week's work in four days rather than five, will be included in Labour's new package of rights for workers. The changes are set to become law this autumn. 

Workers currently have the right to request flexible working, but there is no obligation for bosses to agree to it. 

The new law would give workers the right to demand a four-day week, except where it is "not reasonably feasible".

But critics have warned it will be a "disaster" for the region's businesses, stunting their growth and having a negative impact on the economy. 

BUSINESSES 'PETRIFIED' 

The Conservatives say encouraging a four-day week contradicts Labour's promise to prioritise economic growth and will leave businesses "petrified". 

Jerome Mayhew, MP for Broadland and Fakenham and shadow businesses minister, said giving workers the right to demand compressed hours would be a "disaster" for businesses. 

"There is no universal approach to working arrangements, and the last organisation that should be interfering in this area is the government," he said.

"Rather than instructing people and businesses how to work, the government should allow individuals and employers to work out the best arrangements for their particular situation.

Jerome Mayhew, MP for Broadland and Fakenham and shadow minister for small business, enterprise and postal affairsJerome Mayhew, MP for Broadland and Fakenham and shadow minister for small business, enterprise and postal affairs (Image: Danielle Booden)

"If the government goes ahead with its plans it would be a disaster for SMEs [small and medium-sized enterprises] in my constituency and across the country.

"This decision adds costs and complexity to business, particularly SMEs when they can ill afford it. 

"Businesses do not want the government to legislate in this area as they know that it will stunt business growth and have a negative impact on the economy."

FOUR-DAY WEEK: THE BENEFITS

Businesses already operating on four-day weeks say the benefits include increased productivity and a healthier work-life balance for employees. 

Caribbean Blinds, based in Sudbury, introduced a four-day week at its Suffolk factory in August 2022.

Staff work a standard 40-hour week across four days, compressing their hours into fewer days to give them a three-day weekend. 

Stuart Dantzic, managing director, said it has led to increased production and output. 

Stuart Dantzic, managing director at Caribbean BlindsStuart Dantzic, managing director at Caribbean Blinds (Image: Supplied)

"It has been a resounding success," he said. 

"I always point out that we still do a 40-hour working week. It’s just not possible to output in four days, working an eight-hour day, what you can do in five. 

"It works well for the team. It's better for their health, they have longer weekends to recharge their batteries, and more family time." 

Caribbean Blinds, based in Sudbury, SuffolkCaribbean Blinds, based in Sudbury, Suffolk (Image: Caribbean Blinds)

The firm also claims the move has helped it to recruit and retain staff.

It still offers overtime to staff who want the extra hours, but restricts the number of hours available. 

"We're conscious that we don't want people doing a five-day, 50-hour week, so we limit overtime on Fridays to a maximum of four hours," Mr Dantzic added.

"Otherwise it defeats the object of having the extra time to recharge." 

In Q2 2024, productivity was estimated to be 0.1pc lower compared with a year ago (Q2 2023), according to the latest ONS flash estimate. Productivity was up by 0.3pc compared with the previous quarter, however.In Q2 2024, productivity was estimated to be 0.1pc lower compared with a year ago (Q2 2023), according to the latest ONS flash estimate. Productivity was up by 0.3pc compared with the previous quarter, however. (Image: UK Government/ONS)

In 2023, ranked on GDP per hour worked, the UK was fourth highest out of the G7 countries. UK productivity was around 18pc below the US.In 2023, ranked on GDP per hour worked, the UK was fourth highest out of the G7 countries. UK productivity was around 18pc below the US. (Image: UK Government)

LESS HOURS, SAME PAY

Blink, a Norwich-based e-commerce digital marketing agency, has adopted a different approach. Its staff receive full pay for a four-day week, without compressing in the fifth day's hours. This set-up is not part of Labour's new package. 

It was one of the first firms in the UK to introduce a four-day week, back in 2018. 

"We would get to the end of a week on a Friday and we just were not productive," said Sam Wright, Blink's founder and managing director.

"We would often finish early, and we found it was creeping earlier and earlier until it was a half day."

Sam Wright, Blink founder and managing director (centre)Sam Wright, Blink founder and managing director (centre) (Image: Archant)

Blink, based at Fuel Studios, in PottergateBlink, based at Fuel Studios, in Pottergate (Image: Google Maps)

The firm trialled the four-day week for two months, with staff working 32-hour weeks for the same pay.

"We monitored productivity and output, and it became clear that we were getting the same amount done, if not more," he added. 

SUCCESSFUL GLOBAL TRIAL 

A global trial organised by a group called 4 Day Week Global saw 70 companies across the UK sign up to give staff a shorter week, while paying them as if they worked for five days.

After the six-month trial, 92pc of the participating UK businesses said they planned to continue.

More than a third reported an increase in revenue, and 71pc said they saw less employee burnout. 

CONCERN FOR SMALL BUSINESSES 

The Federation of Small Businesses (FSB) has insisted there are valid reasons why employers might not be able to offer flexible working, such as extra costs and the detrimental impact it could have on quality.

Simona Marr, the FSB's regional development manager for the East of England, said: "Small employers are already good at offering flexibility, with 89pc of them offering it even before the pandemic.

"However, most requests in these businesses are handled informally, through direct conversations between employer and employee.

"Small shops or seasonal businesses often can't predict their staffing needs far in advance, so they need the ability to adjust as circumstances change. If the rules become too rigid, small firms could be forced into formalised corporate HR paperwork for managers that simply doesn't suit them or their staff.

“Any new rules must be practical and not add to the financial pressures that small businesses are already facing. We need balanced regulations that protect workers without overwhelming the small businesses that drive job and wealth creation.”