The ACT is set to become the first Australian jurisdiction to launch a trial of the four-day work week in the public sector and take advantage of the “clear benefits” it can offer.

Last month, the ACT government revealed it would explore a trial of the four-day work week within the ACT Public Sector (ACTPS) and establish a working group early this year to guide this.

It would be the first Australian jurisdiction to launch a trial of the four-day work week, a concept that is picking up steam around the world.

“The ACT government has a long history of innovative industrial relations and workforce initiatives to the benefits of workers and is mindful of the clear benefits a four-day working week would provide,” the ACT government said.

“This would reflect the ACT’s innovative approach to many issues, not limited to employment.”

Accelerated by the COVID-19 pandemic and the rethink of work’s place in our lives it spurred, companies of all sizes around the world are embracing the concept and its associated benefits.

The four-day work week has been found to improve productivity and the physical and mental health of employees.

The ACT government announced the trial in response to an inquiry into the future of the working week by the Standing Committee on Economy and Gender and Economic Equality, which tabled its final report in September last year.

The Committee recommended a pilot of the four-day work week based on the 100:80:100 model, which sees workers receive 100 per cent of their existing pay to work 80 per cent of their normal hours while maintaining 100 per cent of their productivity.

The inquiry found that some perceptions around this concept, such as it leading to workers receiving poorer pay and conditions, lower productivity and increased costs for businesses, are not backed up by research.

“Interestingly, findings from recent Australian four-day work week trials state that 70 per cent of participating companies reported an increase in productivity and 30 per cent reported that it stayed the same,” the Committee’s report said.

“While the committee acknowledges that some specific industries would experience a loss of worker and business productivity if a four-day work week were implemented, the majority of evidence shows that productivity can be maintained or increased across the economy at large.”

Benefits to be had

The inquiry found that the 4-day work week can improve staff retention, work-life balance and business productivity, provide workers with more time for their caring responsibilities and help to address work-related stress and burnout.

In its response, the ACT government agreed to set up a working group to develop a roadmap which will inform a future trial within the public sector of the four-day work week.

This trial will include administrative and frontline business units, and employees on full-time and non-full-time arrangements.

The ACT government did however warn that there will be some challenges with this.

“Whilst productivity may increase, it may not increase sufficiently or with enough longevity to fund the model in the longer term,” the ACT government said.

“Further, staffing in many frontline areas will most likely have to increase to ensure adequate roster cover and ensure service delivery is maintained.”

The working group will consider which business areas will participate in the trial, and the most appropriate mechanisms to implement it via industrial instruments, involving consultation with employees, unions and other representatives.

The ACT government also agreed to consider letting businesses voluntarily participate in this trial.

“Partnering with other organisations presents opportunities to share experiences and learn from others,” it said.

“The working group will consider appropriate organisations to partner with.”

The announcement came soon after the Victorian government poured cold water on a similar trial in the state’s public service, with Premier Jacinta Allan saying the government has no plans to incorporate the four-day work week into the Victorian Public Service Enterprise Agreement 2024.

A federal Senate Committee led by government and Greens Senators last year also recommended a trial of the four-day work week in the Australian Public Service after it heard “substantial evidence” about its benefits.

A number of larger Australian companies are also beginning to adopt the workplace concept, which is also being incorporated into union agreements.

Late last year, Medibank began a six-month pilot of the concept with 250 of its 4,000 full-time and part-time staff, while Oxfam Australia has enshrined it in its enterprise agreement.