Labour plans to introduce a four-day workweek as part of their reform agenda.

 A package championed by Angela Rayner and supported by unions, which allows workers to 'compress hours,' has left businesses 'petrified,' warn the Tories.

Angela Rayner has been collaborating with fellow ministers on the legislation, which is anticipated to be published in mid-October. Credit: Wiktor Szymanowicz/Anadolu via Getty Images.

Workers are set to gain new rights to request a four-day workweek under legislation planned for this autumn.

The Telegraph understands that a system of “compressed hours,” allowing employees to work their contracted weekly hours over four days instead of five, will be included in a broader package of new worker rights.

This legislation is being championed by Deputy Prime Minister Angela Rayner, in close collaboration with trade unions and businesses.

Currently, employees have the legal right to request flexible working, but companies are not obligated to agree. Under the new law, this balance of power would shift, requiring companies to offer flexible working from day one unless it is "not reasonably feasible."

This change would give workers significantly more power to persuade their employers to allow them to complete their weekly hours from Monday to Thursday, giving them Fridays off.

The Conservatives have criticized the plan, warning it could undermine Labour's commitment to economic growth and leave businesses "petrified."

Kevin Hollinrake, the Tory shadow business secretary, said: “Despite repeated warnings from industry, Angela Rayner is pushing forward with her French-style union laws that will increase the cost of doing business in the UK. Labour must listen to businesses who are terrified about day-one employment rights and the introduction of a four-day week through the back door. If they don’t listen, it will be businesses and consumers who pay the price, and growth will suffer.”

Critics argue that increased flexibility, such as more accessible remote working, could reduce productivity. However, a Labour source close to the plan dismissed this criticism, noting that the Conservatives had promised to make flexible working the default in their 2019 manifesto but failed to follow through. The source also cited studies suggesting that flexible working could boost productivity.

A Labour source stated, “The Conservatives pledged to make flexible working the default but failed to deliver. We’ll build on their existing legislation to ensure that flexibility becomes a genuine default, except where it is not reasonably feasible for employers. Flexible working options like compressed hours and term-time working can help more people remain in the workforce and enhance productivity, whether it’s keeping parents employed or assisting those with caregiving responsibilities for elderly relatives.”

The package of workers’ rights, known as Labour’s Plan to Make Work Pay, has been the subject of years of internal discussions and negotiations with trade unions.

Now in government, ministers are set to fulfill their promise to submit draft legislation to Parliament within 100 days of the election, aiming for mid-October.

The exact legal framework for the new approach remains unclear. While much of the public debate has centered on hybrid working, which allows employees to work from home, and the "right to switch off," which protects workers from being required to respond to emails after hours, The Telegraph understands that "compressed hours" will also be included in the legislative package.

This could allow a worker to start earlier and finish later over four days, securing a fifth day off.

A Labour source emphasized that this differs slightly from the commonly understood concept of a four-day week, where an employee works 80 percent of a full week's hours.

The specific criteria for businesses to reject such requests will depend on the precise wording of the legislation Labour intends to propose this autumn.

Labour’s plan to require companies to offer flexible working from day one—unless it is “not reasonably feasible”—must be translated into clear legal terms. The overall design of the package aims to shift the responsibility from companies opting into flexible working to having to opt out for specific reasons.

Supporters within the government argue that the policy is intended to benefit shift workers as much as those in typical Monday-to-Friday office jobs. They also believe it could assist new parents returning to work by helping them reduce childcare costs.

Angela Rayner and Jonathan Reynolds, the Business Secretary, are collaborating on the new law, which is expected to be published in mid-October, with some elements then moving to consultation.