The four-day workweek is no longer an experimental workplace trend. It has evolved into a serious consideration for governments, organisations, and workers worldwide. What began as isolated trials in countries like Iceland has now spread globally, with diverse approaches ranging from mandatory legislative changes to company-led initiatives.
For multinational employers, this trend signals a potential shift in how productivity, employee well-being, and work-life balance are prioritised in the modern labour market.
With countries such as Belgium, Japan, and Spain taking the lead, businesses operating across borders must navigate new employee expectations and the legal and cultural nuances associated with reduced working hours.
This article explores how the four-day workweek is being implemented globally, what employers need to know, and why this trend matters for companies competing in the international talent market.
Pioneering Countries: Leading the Global 4-Day Workweek Movement
Iceland
Iceland is widely regarded as a trailblazer in the four-day workweek movement. Between 2015 and 2019, the country conducted large-scale trials involving over 2,500 employees across public sector jobs such as social services, hospitals, and local government offices. These trials addressed two key challenges: high workplace stress and diminishing work-life balance.
The initiative was born from growing concerns about employee burnout and the need for more sustainable working conditions. By testing shorter workweeks while maintaining full pay, Iceland sought to evaluate whether such a model could balance productivity and employee well-being.
The results were striking:
- Stress and Burnout: Participants reported significantly reduced stress levels and greater mental well-being.
- Work-Life Balance: Employees found more time for personal interests and family, fostering overall satisfaction.
- Productivity: Despite fewer working hours, productivity remained steady or improved, with teams adapting through prioritisation and better time management.
Following the trial’s success, 86% of Iceland’s workforce now has access to flexible or reduced-hour contracts, setting a precedent for other countries.
New Zealand
New Zealand’s role in the four-day workweek discussion began with bold moves by private companies. In 2018, Perpetual Guardian, a trust management company, conducted a well-publicised trial to test the impact of reducing working days while maintaining full pay.
The driving force behind this experiment was the company’s leadership, which wanted to combat rising stress levels, promote a healthier work-life balance, and boost productivity in a high-pressure industry. The trial provided clear evidence of its benefits:
- Productivity: Despite working fewer hours, employees reported being just as productive, if not more, due to improved focus and efficiency during the reduced working week.
- Employee Satisfaction: Workers reported greater satisfaction with their jobs and personal lives, leading to improved retention rates.
The success of Perpetual Guardian’s trial sparked interest across New Zealand, especially among businesses reliant on high employee engagement. Although not yet legislated nationally, New Zealand remains a reference point for company-led innovation in work structures.
Countries Adopting the Four-Day Workweek
Countries adopting the four-day workweek have taken bold steps toward formalising flexible schedules, demonstrating the viability of shorter workweeks through legislation or widespread adoption. Here’s how some key countries have made this shift.
Belgium
In November 2022, Belgium introduced legislation allowing full-time workers to request a four-day workweek. This move aimed to provide greater flexibility in work arrangements while maintaining employee salaries and benefits. Workers compress their 38-hour workweek into four 9.5-hour days, balancing shorter weeks and productivity.
Here’s a breakdown of its key aspects:
Adoption and Implementation
- Employer Discretion: While employees can request a four-day schedule, employers have the right to approve or refuse the request. Any refusal must be accompanied by a written justification.
- Trial Period: Approved requests are valid for six months, allowing employees and employers to assess the arrangement’s impact.
Current Adoption Rates
Despite initial enthusiasm, uptake of the four-day workweek remains limited. Contrary to earlier claims of a 56.5% adoption rate, a report from Acerta in October 2023 shows only 1.9% of employers have employees working a full-time four-day schedule.
Employer and Union Perspectives
- Employer Concerns: Many businesses are hesitant, citing fears of organisational disruption and challenges in restructuring workloads.
- Union Reservations: Labour unions have voiced concerns about the potential for increased daily workloads, which may lead to burnout or stress for employees.
While Belgium’s four-day workweek legislation introduces greater flexibility into the workplace, its adoption has been modest. Challenges around implementation, workload management, and employer acceptance highlight the need for more practical solutions and cultural shifts to make flexible work arrangements more accessible across industries.
United Kingdom
In 2022, the UK conducted one of the world’s most extensive four-day workweek trials. Over 70 companies from diverse industries, involving 3,300 employees, participated in the six-month pilot. The trial tested a model where employees worked reduced hours (typically 32 hours per week) without any pay reduction.
The results were overwhelmingly positive:
- Productivity: Most businesses reported maintained or increased productivity levels.
- Retention and Recruitment: Employees appreciated the improved work-life balance, which led to higher retention rates and greater appeal in attracting talent.
- Permanent Adoption: More than 90% of participating companies decided to continue the four-day workweek after the trial.
This trial has positioned the UK as a leader in flexible work experimentation, setting an example for businesses worldwide.
Scotland
Following in Ireland’s footsteps, Scotland has rolled out its four-day workweek trials as part of a larger strategy to improve worker well-being and reduce burnout. The Scottish government has strongly supported these programs.
- Trial Design: Employees work 80% of their usual hours while retaining 100% of their pay, with participating companies committing to maintaining productivity.
- Focus on Quality of Life: The trial emphasises how shorter workweeks can enhance workers’ quality of life, particularly in high-stress sectors.
- Public Sector Involvement: Discussions are underway to extend the trial to public sector roles, further demonstrating Scotland’s commitment to the concept.
Japan
Japan, long known for its gruelling work culture, is cautiously moving toward flexibility to address overwork and its societal consequences.
In 2019, Microsoft Japan launched the “Work-Life Choice Challenge,” a pilot program that tested a four-day workweek for a month. Employees worked four days while retaining full pay and enjoyed three consecutive days off each week.
The results were impressive: Microsoft reported a 40% increase in productivity, measured by sales per employee, compared to the previous year and a 25% reduction in days taken off.
The company limited meetings to 30 minutes to enhance efficiency and promoted online communication over face-to-face interactions. This initiative was particularly relevant in Japan, where long working hours have been linked to severe health issues, including karoshi (death by overwork). The success of this pilot highlighted the benefits of flexible work arrangements and encouraged Microsoft to consider further strategies to improve employee well-being and productivity.
The pilot’s outcomes were transformative:
- Productivity Boost: Productivity increased by 40% due to fewer meetings and more focused work.
- Energy Savings: The company also saw a 23% reduction in electricity use, aligning with sustainability goals.
While not yet legislated, Japan’s Ministry of Health, Labour, and Welfare has since encouraged companies to offer flexible schedules. The model has gained attention as a possible solution to the country’s chronic overwork culture.
Spain
Spain has taken significant legislative steps to trial a reduced workweek at the national level. In 2021, the Spanish government approved a two-year pilot program to implement a 32-hour workweek, primarily targeting small- and medium-sized companies in sectors such as manufacturing and technology.
The government allocated over €9.65 million to subsidise participating businesses to support this initiative, ensuring employees would not experience pay cuts despite the reduced hours.
The primary objectives of this program are to enhance work-life balance and demonstrate that shorter working hours can maintain or even boost productivity. This pilot represents one of the most substantial government-backed experiments promoting worker well-being while improving industrial efficiency.
United Arab Emirates (UAE)
In 2022, the UAE implemented a four-and-a-half-day workweek for public sector employees. This schedule runs from Monday to Friday noon, making the UAE the first country to align its working week more closely with Western economies.
- Cultural Alignment: The policy was partly designed to align the UAE with international markets for smoother business operations.
- Private Sector Influence: While the change is primarily in the public sector, private companies are increasingly adopting flexible models.
Portugal
Portugal is emerging as a key player in the four-day workweek movement, having launched pilot programs in 2023 with government funding. The government-backed initiative began in June 2023 and involves 41 private-sector organizations. 21 companies are starting a six-month trial of the four-day workweek while maintaining full pay for employees.
The primary aim of these trials is to evaluate the broader impacts on economic output and worker satisfaction. Participants voluntarily committed to reducing their working hours without financial compensation from the government, and they can opt out of the program at any time.
The program is being conducted in partnership with 4 Day Week Global, and researchers from Henley Business School and Birkbeck, University of London monitor its results.
Initial findings indicate positive outcomes, including reduced worker anxiety and fatigue and improved work-life balance. The initiative reflects Portugal’s commitment to modernising employment practices and enhancing employee well-being while assessing the potential for broader implementation across various sectors.
Germany
Germany has taken a more cautious approach, with smaller-scale trials by individual companies and unions advocating for reduced hours.
- Union Involvement: The German Trade Union Confederation (DGB) has called for shorter workweeks to balance work-life priorities and improve mental health.
- Industry Focus: Trials have been most prominent in tech and creative industries, where flexible working hours are easier to implement.
- Challenges: Resistance from employers in manufacturing and engineering sectors, where strict schedules are required, has slowed wider adoption.
Common Benefits of Four-Day Week
- Enhanced Work-Life Balance: Workers report improved mental health and satisfaction.
- Productivity Gains: Across industries, shorter workweeks often maintain or improve output.
- Talent Retention: Flexible schedules attract top talent and reduce turnover.
- Energy Efficiency: Countries like Japan have seen reduced operational costs, such as energy savings, from fewer workdays.
Business-Led Innovations in North America
While some countries legislate shorter workweeks, the movement in North America is primarily driven by individual businesses experimenting with and adopting four-day schedules. These private-sector initiatives showcase how flexibility and innovation can bring tangible benefits in productivity, employee satisfaction, and retention.
United States
In the U.S., a country known for its long working hours and “hustle culture,” the four-day workweek is gaining momentum as progressive companies experiment with alternative schedules. While no federal legislation mandates reduced workweeks, forward-thinking organisations are proving their viability.
Key examples include:
- Kickstarter: The crowdfunding platform implemented a four-day workweek in 2021 as part of a year-long trial. Kickstarter aimed to reduce burnout and boost creativity by allowing employees more personal time. Following a successful trial, the company permanently adopted the model, citing no loss in productivity.
- Buffer: The social media management platform has operated on a four-day schedule since 2020. Buffer’s leadership found that shorter weeks improved employee engagement and retention, with workers reporting greater focus during reduced hours.
- Basecamp: This software company embraced a seasonal four-day workweek, offering employees flexible schedules during the summer months. This hybrid approach balances workload demands with opportunities for rest and rejuvenation.
These examples highlight how U.S. businesses lead the charge by prioritising employee well-being without sacrificing operational efficiency.
Challenges and Future Perspectives
- While adoption grows, scalability remains a challenge, especially in industries like healthcare or retail, where customer-facing roles require continuous coverage.
- However, rising demand from younger employees for flexibility and work-life balance could push more companies to follow suit, creating pressure for broader adoption in competitive labour markets.
Canada
In Canada, employers across public and private sectors increasingly adopt the four-day workweek.
Why Are Canadian Employers Adopting the Four-Day Workweek?
A York University report found that 73% of employers cited the pandemic as a key motivator for trialling a shorter workweek. Amid shifts in employee expectations, organisations are using this model to tackle the following issues:
- Competing for Talent: Labour markets are becoming more competitive, and a four-day workweek is a differentiator that helps employers stand out, offering improved work-life balance.
- Improving Workforce Satisfaction: As precarious gig work and contractual roles rise, a shorter, stable workweek helps organisations address burnout and improve engagement.
Conclusion: Is the Four-Day Workweek Right for Global Employers?
The four-day workweek is more than a trending idea — it reflects what employees increasingly value: flexibility, balance, and respect for their time. For multinational employers, adopting this model could mean attracting top talent, reducing burnout, and fostering a culture where people work smarter, not harder.
AI is changing the way we work. Automating repetitive tasks frees up time for people to focus on creativity, problem-solving, and innovation. This shift supports shorter workweeks, making them more practical and allowing employees to achieve more in less time.
But it’s not without challenges. Some industries, like healthcare or manufacturing, may find it harder to adapt, and operating across borders adds complexity. Labour laws, cultural expectations, and local business practices can vary widely, making one-size-fits-all solutions unrealistic.
The key is thoughtful implementation. Companies that adopt the four-day workweek with careful planning can achieve happier employees and steady productivity.