Working Hard or Hardly Working? Making the Four-Day Workweek Work for You

We’ve all heard of the magical work-life balance in Sweden, where companies have been experimenting with shorter workweeks for years. One attempt in Gothenburg saw municipal workers shift to a six-hour workday without losing pay. The results? Increased productivity, happier employees, and fewer sick days. While not every business has embraced the change permanently, the experiment fueled the global conversation about reducing work hours. 

The four-day workweek has become one of the hottest workplace trends as organizations around the globe explore new ways to boost productivity, employee well-being, and retention. However, for Ontario employers, adopting this model isn’t as simple as updating a work schedule. It requires careful consideration of both legal and practical implications.

Here’s what you need to know if you’re an Ontario Employer and considering implementing a four-day workweek for your business.

Why the Four-Day Workweek Is Gaining Traction

The idea of working fewer days while maintaining the same level of pay has captured the attention of employers and employees alike. Recent attempts in countries like Iceland and the UK showed significant improvements in employee happiness, reductions in burnout, and no notable drop in productivity. In competitive labour markets, offering a four-day workweek can also help businesses stand out as progressive employers.

However, while the concept is appealing, implementing it successfully requires addressing potential legal and operational hurdles.

Legal Considerations in Ontario

Employers in Ontario must align any four-day workweek model with the Employment Standards Act, 2000 (ESA) requirements. Here are some key areas to address:

1. Hours of Work and Overtime
   • The ESA sets a daily work limit of 8 hours and a weekly limit of 48 hours. The only way to exceed this limit is through a written or electronic agreement. 
   • Shifting to a four-day workweek often means employees work longer hours each day to maintain the same total weekly hours. For example, employees may work four 10-hour or 12-hour days instead of five 8-hour days. Any hours exceeding the established daily or weekly thresholds may trigger overtime obligations.
2. Vacation Pay and Statutory Holidays
   • Employers must ensure that statutory holiday pay and vacation entitlements remain compliant with the ESA. For example, an employee’s entitlement to statutory holiday pay cannot be reduced due to fewer working days in the week.
3. Constructive Dismissal Risks
   • Introducing a four-day workweek could be considered a significant change to the terms of employment. If not handled properly, it may expose the employer to constructive dismissal claims. To mitigate risks, ensure clear communication, a long runway of notice, and secure employees’ written agreement to the change.
4. Employee Classifications
   • For salaried versus hourly employees, different rules around hours of work and overtime apply. Be sure to tailor your approach to the classification of each role.

Practical Challenges and Solutions

While the legal framework is critical, employers must also navigate operational challenges when adopting a four-day workweek:

1. Industry-Specific Challenges
   • In sectors like retail, healthcare, and manufacturing, reduced workweeks can be harder to implement due to the need for continuous operations. Employers in these industries may consider staggered schedules or partial adoption (e.g., offering the four-day model to certain roles).
2. Customer Expectations
   • If your business relies on being available to customers five or more days per week, reducing the number of workdays for employees may require changes to coverage models. Consider splitting teams to ensure continuity and customer support without overburdening staff.
3. Maintaining Productivity
   • Employers who’ve adopted four-day workweeks often report that clear goals, time management training, and performance metrics are key to maintaining productivity. Regular check-ins and feedback loops can help ensure the model works effectively for both employees and the business.
4. Employee Buy-In
   • Not all employees may welcome the change – particularly if it involves longer workdays. Conduct surveys or pilot the model on a trial basis to gauge employee sentiment before implementing any permanent changes.

How to Trial a Four-Day Workweek

If you’re interested in exploring a four-day workweek, consider these steps:

1. Conduct a Feasibility Assessment
   • Identify roles and departments where the model is most likely to succeed. Analyze workload distribution and potential cost implications if necessary.
2. Communicate Clearly
   • Engage employees early in the process to explain the rationale, benefits, and potential challenges. Use surveys or focus groups to gather input.
3. Pilot the Model
   • Start with a limited-duration trial (e.g., three to six months) and monitor key performance indicators such as productivity, employee satisfaction, and customer feedback.
4. Evaluate and Adjust
   • After the trial, review the results and solicit feedback from employees and stakeholders. Be prepared to refine the model or revert to the traditional schedule if it doesn’t meet expectations.

Is It Right for Your Business?

Adopting a four-day workweek can be a game-changer for many organizations, but it’s not a one-size-fits-all solution. For Ontario employers, the key is balancing innovation with compliance. By understanding the legal and operational factors at play, you can decide if this model aligns with your business goals and workplace culture.

Considering a four-day workweek? We can guide you on legal compliance and best practices. Whether you’re looking for tailored advice or need help applying this trend to your workplace, contact us for support.