Navigating the Complexities of a Four-Day Work Week

In the 1920s, Henry Ford revolutionized the workweek by introducing the standard 9-to-5, five-day schedule without reducing pay. Nearly a century later, with remote work and efficient technology on the rise, some employers are wondering if they can also be pioneers by adopting a four-day work week. The concept of a four-day work week has gained significant traction since the pandemic, with studies showing its potential to boost worker retention, attract talent, increase productivity, and improve employee morale – all of which are crucial in the highly competitive gaming industry. However, before diving into a four-day work week, it's essential for game developers and publishers to consider the legal implications of such a switch. This article explores critical legal considerations that employers should contemplate before altering their standard working days, including pay and hours, employment contracts, holiday entitlement, and best practices. Firstly, employers must consider how a four-day work week affects part-time employees, who are protected from less favorable treatment compared to their full-time counterparts in many jurisdictions, including the UK. To avoid unequal treatment, part-time employees working four days a week would need to receive full-time equivalent salaries, while those working less than four days should have their salaries pro-rated based on a new four-day work week full-time equivalent. Additionally, games businesses that engage workers through employer of record arrangements or freelance contracts must carefully consider these arrangements when switching to a four-day week, as they may add complexity to the transition. Practically, companies must figure out how to make the change work with their clients and customers, who may still be operating on a five-day work week model. This includes deciding which days employees and contractors will work and whether some employees will be on call during their days off. Before embarking on a four-day work week, it's crucial to get employee buy-in. Changing working days requires significant amendments to employment terms, which demands consultation and agreement between the employer and employee to vary their employment contracts. A comprehensive and fair process is essential to avoid disparity in contractual terms, unfit employment contracts, and potential legal disputes. Employers should review their policies, staff handbooks, and employment contracts to identify areas that may be affected by the transition. The laws surrounding holiday entitlement are complex, and employers must carefully consider the impact of changes to the working week. In the UK, failure to implement these changes correctly could result in claims of unlawful deduction of wages or constructive dismissal. If an employer switches to a four-day week with a standard 37.5 to 40-hour working week, holiday entitlement would remain the same. However, if employees work less than 35 hours, employers may be able to reduce holiday entitlement under current legislation. Employers must also decide how to handle bank holidays, which could involve allowing employees to take the day off and have a three-day working week or requiring them to take a different day off. When implementing a four-day work week, employers have various models to choose from, including reduced pay, compressed hours, or standard hours with increased efficiency. It's essential to choose a model that suits the business and its stakeholders. Before committing to a four-day work week, employers should consider implementing changes on a trial basis to assess viability and avoid disappointing employees if the model doesn't work out. Key legal considerations for companies implementing a four-day work week include understanding the impact on the workforce, having a clear plan, considering liabilities, reviewing employment contracts, and calculating holiday entitlements. While four-day work weeks may not be the norm in 2024, some companies in the gaming industry have already made the switch. With one-third of employers expecting the four-day week to become attainable for most workers within the next decade, it's essential for games companies to carefully consider whether this schedule is viable for them. In conclusion, there is no one-size-fits-all approach to four-day work weeks, and what works for some employers may not work for others. Games companies must think carefully about whether a four-day work week is suitable for them and ensure that any changes are implemented properly to avoid unnecessary employment risks.