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Four Days, Full Pay – Can Your Business Really Make a 4 Day Week Work?

The Australian Council of Trade Unions’ (ACTU) renewed push for a 4-day work week with no pay reduction has reignited debate across boardrooms, break rooms, and political circles. Backed by international trials showing improved productivity and employee well-being, the proposal has its advocates. But for Australian business owners, the reality is complex. Let’s unpack the benefits, challenges, and practical alternatives – helping you decide whether it’s worth exploring in your own workplace.

4 Day Work Week: Background & Context

The ACTU’s proposal centres on reducing the working week to four days, maintaining full pay, and protecting penalty rates, overtime, and staffing levels. Small business groups have pushed back, citing fixed overheads and operational demands that don’t disappear with a shorter week.

The government has so far kept the policy off the industrial relations agenda, noting that flexibility can be negotiated via enterprise bargaining ^[3]. Trials in the UK, Iceland, and New Zealand have reported maintained or improved productivity, reduced burnout, and greater job satisfaction ^[2][4]. The University of Melbourne has also suggested that shorter working hours could help boost Australia’s lagging productivity ^[5].

For WA businesses, particularly those in mining support services, agriculture, and tourism, the proposal presents unique operational questions – these sectors often require extended or irregular hours to meet client and seasonal demands.

The Potential Benefits for Business

A four-day week could mean more than just a long weekend.

• Employee well-being: Reduced burnout, improved mental health, and greater job satisfaction ^[4]. This is especially relevant in WA’s FIFO-heavy industries, where fatigue management is a priority.
• Productivity gains: Multiple trials show stable or increased productivity when hours are reduced ^[2][4]. For example, WA-based professional services firms could benefit from sharper focus and fewer unproductive meetings.
• Operational focus: Shorter weeks can force teams to eliminate inefficiencies and streamline processes ^[4]. Many tech start-ups and creative agencies in particular have already experimented with “no meeting” days to boost project output.
• Employer branding: Flexible work models are highly attractive in what is an incredibly competitive job market. For instance, this could help regional retail or hospitality businesses attract skilled staff from Perth who may otherwise not move to regional areas.

The Challenges for Business Owners

For many businesses, the risks are just as compelling as the rewards.

• Fixed-cost pressure: Rent, utilities, insurance – these costs remain the same regardless of hours worked ^[1]. For a Subiaco café or Joondalup childcare centre, reduced operating days may not reduce expenses enough to offset lost revenue.
• Operational inflexibility: Retail, hospitality, and healthcare businesses in particular often require full-time coverage across the week. In WA’s tourism sector, for example, operators in Broome and Margaret River rely on consistent service during peak seasons, which likely would lend itself to a shorter working week.
• Compressed workday fatigue: In cases where hours are compressed rather than reduced, longer days can lead to employee exhaustion ^[4]. This is particularly risky in physically demanding trades like construction.
• Economic uncertainty: Critics argue that higher labour costs per hour could reduce competitiveness, particularly in price-sensitive markets ^[5]. This could affect WA manufacturers competing with interstate or overseas suppliers.

Alternatives & Adaptive Strategies

If the four-day week seems unworkable, there are other ways to offer flexibility:

• Compressed workweek: Maintain total hours (e.g., four 10-hour days) without reducing output.
• Roster flexibility and additional leave: Offer rostered days off or increase annual leave allowances (i.e. time in lieu).
• Enterprise bargaining agreements: Negotiate arrangements that fit your operational needs without a blanket policy change ^[3].

These alternatives can often deliver some of the well-being and productivity benefits without the full economic impact.

Integrating Change into Business Planning

If you’re considering trialling a four-day week, treat it as a strategic change project.

1. Change management: Communicate early, set clear expectations, and involve staff in planning. This sort of change impacts them significantly, so ensure they are part of the development and implementation of such a solution.
2. Financial modelling: Compare scenarios – standard week, four-day week, and compressed week – factoring in wage costs, utilities, and potential revenue shifts. For example, a Fremantle-based marketing agency could model whether reduced hours affect client delivery deadlines.
3. Review structure: Analyse whether roles and workflows can be redesigned for fewer days without losing productivity. This might involve cross-training staff in regional retail or agricultural supply businesses.
4. Track KPIs: Monitor productivity, customer satisfaction, revenue, and employee engagement throughout any trial. Naturally, any initiative like this still needs to work for the business, not just staff. Outline KPIs with your team at the outset and make it clear that a 4 day work week is available only if targets are met.

A data-driven approach ensures decisions are based on measurable outcomes rather than assumptions.

So, is a 4 Day Work Week Right for Your Business?

The four-day working week holds promise – especially in terms of employee satisfaction and operational efficiency – but it’s not a one-size-fits-all solution. For many WA businesses, fixed costs, client expectations, and staffing realities may make it impractical.

If you’re intrigued, you could start with a short-term pilot or consider flexible alternatives. Leverage automation and streamline processes to maintain service levels. Align any change with your broader business strategy, ensuring it’s sustainable in both financial and operational terms.

Thinking about testing the four-day model or another flexible work arrangement? McKinley Plowman’s Business Improvement team can help you model the impacts, refine your operating rhythm, and design strategies that work for your unique business needs. Call us on (08) 9301 2200 or contact us via our website.

Reading List & References

1. Thriday (2023), The four-day working week and will small businesses need to comply? Accessed August 2025: https://www.thriday.com.au/blog-posts/the-four-day-working-week
2. 4 Day Week Global (2022), UK Pilot Programme Results. Accessed August 2025: https://www.4dayweek.com/reports
3. com.au (2024), ACTU to propose four-day work week and reduced hours that won’t impact pay. Accessed August 2025: https://www.news.com.au/finance/work/actu-to-propose-fourday-work-week-and-reduced-hours-that-wont-impact-pay/news-story/311f1c247bb3cf5afdd82592519c821b
4. SBS News (2024), Fewer hours, same pay: Is Australia ready for a four-day working week? Accessed August 2025: https://www.sbs.com.au/news/article/fewer-hours-same-pay-is-australia-ready-for-a-four-day-working-week/tya1mg6st
5. The Nightly (2024), Four-day week ACTU proposal a fantasy that would damage the economy, hurt workers and make Australia poorer. Accessed August 2025: https://thenightly.com.au/opinion/four-day-week-actu-proposal-a-fantasy-that-would-damage-the-economy-hurt-workers-and-make-australia-poorer-c-19666779

written by:

Ben Teti

Ben’s career began in April 2008 specialising in taxation and business advisory by managing a small portfolio at a young age. He joined McKinley Plowman in 2014 as a Senior Accountant and with his passion for business and assisting clients in achieving their objectives he has progressed to a Business Services Manager, and more recently being appointed as an Associate Director.

As a qualified Certified Practising Accountant, his areas of expertise include but are not limited to, assisting clients with new business start-ups, advising on business structures, tax planning, business valuations and management reporting across many industries.

Ben prides himself on being part of his client’s business journey in taking them from where they are now and working towards where they want to be.