Labour market reform: towards a generalized 4-day week in Europe?

The 4-day week, you dreamt about it, some companies have done it. But what about the salary? Well, it's still 5 days. What about productivity? Is it a revolution? Will the 4-day week be imposed on all sectors? These are just some of the questions that need to be answered, by employees and employers alike.
Legal reforms
Reading time: 9min
Domicile your business in just a few clicks
Choose my address

What is the 4-day week?

The 4-day week means 4 days on, three days off. For some lucky people, this means 28 hours. It may seem like a utopian idea, but many companies around the world have already adopted it: 

  • Basecamp, Kickstarter or Bolt in the United States
  • Blackbird Interactive, David Suzuki Foundation, Praxis in Canada
  • Atom Bank, Girling Jones, BWD, in the UK
  • Elmy, IT Partner, Love Radius, in France.

 

However, 4-day working is not always beneficial for the employee, as in Belgium, where employees have to do in 4 days what they used to do in 5.

Socio-political context

What prompted companies to move towards this new weekly organization? The issue of the 4-day week is not new. In 1993, French politician Pierre Larrouturou introduced the idea into the political debate, and took part in the 1996 Robien law, whose flexibility would be erased by the uniformity of the 35-hour working week reform.

It was the Covid crisis, and in particular the confinement of 2020, that suddenly brought the 4-day week back into the spotlight. This health crisis enabled many companies to see that this new work organization did not make them less productive - quite the contrary. This is what we'll see below.

 

What are the benefits for employees?  

1. Work less to earn more

It's the antithesis of Nicolas Sarkozy's famous presidential campaign slogan. Yet that's exactly what the 4-day week offers many employees. Particularly those lucky enough to work 28 hours for 35 hours pay

 

2. More time for family life

This was the basis of the 1936 reform: 8 hours of work, 8 hours of leisure, 8 hours of rest. It took almost 120 years for this slogan, coined by Robert Owen in 1817, to be put into practice. 

Today, whatever the working time of the 4-day week, it gives employees three days of free time, which can be spread over a Wednesday, for example, at the company's discretion

 

3. Limit burnouts

Nearly one employee in two suffers from psychological distress in France, and the figures are much the same in other countries, including the USA. The 4-day week, with the balance between family life and professional life it affords, limits this trend. 

 

What are the drawbacks for employees?

1. The same workload

Working less means carrying out the same tasks. As a result, we wonder how employees, who are already struggling to do the work they are asked to do, could achieve in 4 days what they sometimes can't even do in 5. 

 

2. Greater versatility

The 4-day week leads to absenteeism in the workforce. Some companies have to stay open 5 or 6 days out of 7, so the workforce has to rotate. As a result, those present have to carry out the tasks of those absent, and thus become more versatile. 

While this versatility may suit certain profiles, it's not the case for all employees, some of whom don't much appreciate thinking outside the box.

3. A pay cut

The case of the wage cut is exactly what happened at the Volkswagen plants in Germany. There, the 4-day week led to a 20% pay cut, limited by bonuses.  

 

What are the benefits for the employer?

1. Greater productivity

Companies that have implemented the 4-day week all seem to agree on one thing: employees are more productive. Why are they more productive? Because they're less tired, their life balance is better, and they're also keen to keep this work organization. 

 

2. A better attitude towards customers

This benefit follows on from the other. As employees are less tired, they are more present and focused on the tasks at hand. This is directly reflected in their relationship with customers, the lifeblood of any business.

Happy customers are the backbone of a company's economic health. And it's not the only competitive advantage.

 

3. Greater competitiveness in the job market

To survive, companies need to attract the best employees. The 4-day week is a huge competitive advantage on the job market. Why is this? Because candidates are increasingly looking for companies that take their well-being into account. 

A company with a 4-day week sends out a strong signal that their needs as a family caregiver are taken into account. 

What's in it for the employer?

1. Unsuitable production requirements

The production plant is the best example. How do you reconcile 3-8 shift work, for example, with a 4-day week? The aforementioned giant Volkswagen didn't last long when it had to increase the number of hours its employees worked to produce new vehicle models. 

 

2. Overly complex reorganization in large companies

Lacking the 4-day week in France, large companies no longer have the flexibility of VSEs and SMEs. In large groups, reorganization rhymes more often with restructuring than with well-being at work, because any reform has a significant cost.

 

3. Difficulties in satisfying customers

It's a fact that the 4-day week distances employees from customers' work schedules. As a result, communication difficulties arise between employees and customers. Without good working time management, failure is guaranteed. 

 

Countries that have already implemented the 4-day week and initial results

Numerous tests are being carried out around the world: 

  • In Great Britain, 
  • In New Zealand, 
  • In Australia, 
  • In the United States. 

We know the British are pragmatic. That's why they decided to test the 4-day week on 70 companies over a 6-month period. The mid-term results are very positive, with productivity gains. 

Other 4-day week test programs have been developed. In California, New Zealand and the United States. Results are promising everywhere.

 

What's the outlook for France and other European countries? 

Panegyrists of the 4-day week point to the potential creation of 1.5 million jobs in France. However, since the question made its comeback in 2020, the political trend doesn't seem to be on its side. 

On the contrary, the 2022 amended finance law has even come to defiscalize overtime hours up to 7,500 euros net taxable value instead of 5,000 euros. A clear message about the current political trend: work more to earn more.

Right in the middle of the North Atlantic, Iceland has carried out the most far-reaching reform. Begun in 2015, the reform of working hours on the island now enables 86% of Icelanders to benefit from adapted schedules that reduce their working hours. 

In Spain, the government is piloting a test involving 200 companies whose employees will not work 32 hours instead of 35, but 32 hours instead of 40. 

France, whose government does not seem to be moving in this direction, may well have to jump on the bandwagon in the years to come. 

Written by our expert Cyril SCHWASTIAK
November 16, 2022

What are the advantages for a company of introducing a 4-day week?

  • Greater productivity

    1. Greater productivity

    Microsoft Japan has shown that the productivity of employees working 4 days a week can increase by 40%.

  • Improved customer focus

    2. Better customer attitude

    Less tired, more focused employees better serve the interests of the company's customers.

  • Increased competitiveness in the job market :

    3. Increased competitiveness in the job market :

    Companies offering a 4-day week naturally attract new talent.

1 of 3
 Back to home page

Frequently asked questions

What is the French government's position on the 4-day week?
Chevron
Elisabeth Borne was quick to put the brakes on, stating that the government could not impose such a measure.
Is there a risk for the company in implementing the 4-day week?
Chevron
For companies able to reorganize quickly, the risk is low, and may even attract talent quickly. For others, the cost could be too high.
What are the benefits for employees and employers?
Chevron
Increased productivity, Greater happiness at work, Greater competitiveness in the job market.
Why a 4-day week?
Chevron
Reduce burn-out, Attract talent, Increase employee productivity.