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Aurora borealis (the Northern Lights). Stunning landscapes. Outdoor hot-tubs, year-round. All of these, you will find in Iceland. And yet, recently this country has been in the headlines not for these things, but for its work practices? The 4-day work week. It is the talk of the town. From Reykjavík to Randwick, there has been an unmistakable uptick in talk of workers working 4 days but being paid for 5.
Although, as it turns out, the Icelandic trials did not trial a 4-day work week at all. Employees in those trials reduced their working hours, but mostly to 35 or 36 hours. Still, they raise the question: what barriers and risks are faced by Australian employers that might consider introducing a 4-day work week?
Defining the “4-day work week”
The barriers and risks facing Australian employers can depend on the way “4-day work week” is defined, as the phrase can have several meanings. Firstly, a 4-day week can refer to a full-time employee working 4 days of ordinary hours, where the employer retains a discretion to require the employee to be recalled to work the 5th day, as Perpetual Guardian did in New Zealand recently. This might be called a “Discretionary 4DW”.
Secondly, an employee’s contract might set ordinary working hours at 4 days per week, say 30 hours, without a reduction in salary. This is essentially a part-time employment arrangement, albeit where the employee is paid well for those hours. Let’s call this a “Contractual 4DW”.
Thirdly, “4-day work week” can refer to a compressed work week, where an employee works full-time hours, squashed into 4 longer days. Let’s call this a “Compressed 4DW”.
Each of these arrangements operate differently and face unique risks and issues under Australian law. Some of the risks and issues that may be faced by employers include:
The future
With leaps forward in technology, the question must be considered: does the future involve a 5-day working week in Australia? Australia’s industrial history demonstrates that, should a persuasive body of evidence emerge which links greater productivity to fewer working days per week, a case might be presented for legislative change to follow. Of course, Australian employers could introduce a four-day work week in their own organisation now, provided the associated risks and issues are fully considered.
Click here to read the full article ‘Be careful what you wish four: Australian considerations of a 4-day work week’ or contact us below for more information about our Employment Law Bulletin.