The Four Day Work Week in Canada

Considerations for a Four Day Work Week

• How could this change impact an employee’s terms of employment (drop in pay, duties, etc.)
• How could this change impact how vacation days are counted?
• What rights does an employee need to keep in mind if the employee does make a change to a four-day workweek?
• What should employers be aware of when considering this model?

Boosting productivity, reducing workplace accidents, increasing happiness, and cutting cost. These are all benefits that have been linked to employers introducing a four-day workweek. As provinces across the country begin to lift restrictions on social interaction, we’re entering a time well-suited for creative thinking about the way we work.

The suggestion for a four-day workweek, which had been tested and found by Microsoft Japan in 2019 to boost productivity by 40%, has gained traction again thanks to a City News reporter who prompted Prime Minister Trudeau on whether some Canadians can expect to make the switch from working remotely to working remotely less.

New Zealand Prime Minister, Jacinda Ardern, shared the suggestion again in the context of how we can help stimulate the post-COVID19 economy. Since 2018, several NZ government agencies have participated in a test program called “flexible work by default” which allows employers to provide freedom to terms of employment to employees in a variety of ways. Reports from one participating company, Perpetual Guardian, found higher productivity, better work-life balance, and reduced stress when employees were given one more day off. With the free time and control over the method of work afforded to employees, this flexibility could allow for more time for travel and much-needed engagement in the economy.

Most models that have been tested involved employees working the same number of hours over fewer days, and not reducing the overall amount of hours worked. The idea is not to pay employees less, but to provide a more efficient way to work when needed.

Work Schedule Changes Resulting From COVID-19

Following the pandemic, a great source of confusion and distress for many employees were the changing rules to the terms and expectations of their existing working relationship. Working Canadians should note that any unreasonable change to the terms of their employment made solely by their employer without their input or approval can provide the basis for a claim of being constructively dismissed.

Ideally, a nation-wide shift from working from five to four days a week should be accompanied by updates from the government to the applicable employment standards legislation in order to clearly set out how this change would impact the current measurements used to calculate vacation days, overtime hours, and probationary periods, among other rights provided to employees that are based on accrued time worked. A process by which employers and employees can jointly agree to the parameters of their working relationship would help to make communication open and clear about expectations moving forward. Employees paid hourly should pay particular attention to any changes made to their employment in the absence of such an agreement with their employer.

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• Hourly employees and severance pay

Any employer considering a new working model should seek legal advice for how best to introduce these changes and update their contracts and policies to allow everyone involved to rely on the agreed-upon terms fairly, well before making any change. And if you’re an employee who is facing a move to a four-day work model or flexible work suggested by your employer, it’s a prudent decision to have the terms of your employment relationship reviewed with legal counsel to see how your rights and remedies are affected. It’s best to seek legal advice as soon as you have an indication that there may be changes, as early advice before a problem occurs can help put you in the best position to protect your rights and give you the information to put your mind at ease.