What has just happened?
A group of MPs from Labour, the Scottish National Party and the Green party have written a letter to the chancellor, Rishi Sunak, asking him to set up a commission to explore the option of a four-day working week for the UK, to help kick-start the economy after the COVID-19 crisis.[1]
What does this mean?
These MPs have made the argument that this change will reduce stress and overworking, boost mental health and wellbeing, and increase productivity[2]. The organisation lobbying for the commission, 4 Day Week Campaign, says that introducing a 30-hour working week or equivalent will bring social, democratic, economic and environmental benefits if accompanied by a rise in hourly pay[3].
However, if the commission’s findings are positive and the government implements the measure, it will decidedly be in the interest of the economy. The rationale is that this measure will protect both businesses and households as the economy recovers: businesses will be able to retain more staff and improve productivity, while individuals will face less risk of unemployment, due to an equal distribution of working hours. Indeed, a commission is already underway in Scotland to explore the initiative’s potential to generate new jobs[4].
In a post-COVID climate, the extra day off could also stimulate weekend spending in the hospitality and leisure industries, sectors that have perhaps suffered the most so far in 2020. This is dependent on the government increasing the minimum wage or companies paying their employees the same wages for shorter hours, a strategy the Change Recruitment Group says is possible because of advancements in AI technology[5], i.e. chatbots.
A notable example of this scheme’s success is the New Zealand financial services company Perpetual Guardian, which trialed the four-day week for eight weeks, beginning in March 2018. In a study carried out by the University of Auckland and Auckland University of Technology (AUT), staff engagement rose by an average of 19% when working 30 hours a week, while maintaining an output equal to that of a 37.5 hour working week. The trial’s success lead to the company permanently adopting the four-day week in November 2018[6].
How does it impact the legal sector?
Law firms can expect to enjoy the same benefits as most other businesses - decreased operational costs, better employee engagement and increased productivity. Larger firms who can afford to employ a higher number of staff will also be given an edge if they can schedule working hours to allow the business to stay operational for five days a week.
The bigger threat is to smaller firms, who run the risk of losing business and clients due to potential poor customer satisfaction that the same workload and reduced operating hours may bring.
Another issue is implementation. Some firms may choose to compensate for the extra day by lengthening office hours during the four working days. Lawyers are already known for working overtime without the prospect of Fridays off, but the consequences of longer workdays could prove to be more taxing and stressful. What’s more, the nature of the work itself can sometimes prove urgent and require out-of-hours assistance that cuts into the supposed three days off, rendering the entire revision of the traditional working week moot[7].
One thing is certain and that is the segment that will experience the biggest is employment law. As the UK adapts to the new normal, those working in employment law could expect to have an increased demand for services, with extra mediation needed between businesses and unions and the call for new employment contracts to be drawn up and negotiated.
Written by Hannah Phelvin
Assessing Firms
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References
[1] Jessica Murray, ‘Cross-party group urges chancellor to consider four-day week for UK’ (The Guardian, 20th June 2020).
[2] Ibid
[3] 4 Day Week Campaign, ‘Our Manifesto’ (https://www.4dayweek.co.uk/our-manifesto).
[4] Adele Merson, ‘Scotland’s plans for ‘better future’ after coronavirus pandemic may include four-day working week’ (The Press and Journal, 5th May 2020).
[5] Change Recruitment Group, ‘The Pros and Cons of a 4 Day Working Week’ (https://www.changerecruitmentgroup.com/knowledge-centre/the-pros-and-cons-of-a-4-day-working-week).
[6] 4 Day Week Global Ltd, ‘1. The Perpetual Guardian Four-Day Week Trial’(https://4dayweek.com/four-day-week-trial/).
[7] Jack Binns, ‘Could a four-day week ever work for law firms?’ (Weekly10, 25th October 2019).
Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.