Introduction of the 4-Day Workweek: Legal Basics
The 4-day workweek is currently being discussed as a work model in many companies. In an era of skilled labor shortages and growing demands for flexibility among employees, many companies see it as a competitive advantage in the race for talent. However, in addition to its appeal to employees, the 4-day workweek also presents companies with challenges under labor law. To ensure the model is legally compliant, several steps must be taken into account.
What does the 4-day workweek mean in terms of labor law?
A 4-day workweek means that work is spread over four days a week, so that the remaining days are days off. The weekly working hours that applied before the introduction of the 4-day workweek can either remain the same or be reduced—this depends on the chosen model.
Three possible models of the 4-day workweek
There are three main models that have become established in practice:
- 4-day workweek with reduced working hours and reduced pay: In this model, both the weekly working hours and the salary are adjusted, as fewer hours are worked.
- 4-day workweek with unchanged working hours and unchanged salary: In this model, the number of weekly working hours remains the same, but they are spread over four days instead of five. The salary remains unchanged.
- 4-day workweek with reduced working hours and unchanged salary: In this case, employees work fewer hours per week but receive their full salary. This option is often the most attractive for employees but also the most costly for the employer.
Implementing the 4-day workweek: What can the employer decide?
The decision regarding a 4-day workweek is generally at the employer’s discretion. This means that the employer may implement the model unilaterally—that is, without the employees’ consent—under certain conditions. One example is Model 2, in which the weekly working hours and salary remain the same. In this case, the employer can adjust the distribution of working hours solely through their managerial authority (regulated in Section 106 of the German Trade Regulation Act).
When is employee consent required?
However, if both working hours and compensation are to be adjusted (as in Model 1 or Model 3), the consent of each affected employee is required. This is because a change in compensation and/or the contractually agreed working hours constitutes an amendment to the employment contract. This amendment can be made through a supplementary agreement between the employer and the employee.
Involvement of the Works Council
If a company plans to implement the 4-day workweek on a collective basis, the works council must be involved, provided one exists within the company. This applies to all models of the 4-day workweek, regardless of whether working hours or salary remain unchanged or are adjusted. The works council has the right to participate in decisions regarding changes to working hours in order to represent the interests of the employees.
Compliance with the Working Hours Act
When introducing a 4-day workweek, the provisions of the Working Hours Act (ArbZG) must be observed. The ArbZG stipulates that the daily working time generally may not exceed eight hours and may not exceed ten hours. Overtime is not permitted on a ten-hour workday.
This means that a 4-day workweek with a consistent weekly working time exceeding 40 hours is only feasible if the weekly working time is reduced accordingly. Regulations regarding breaks and rest periods must also be observed to ensure that employees’ health is not compromised.
Conclusion
The introduction of the 4-day workweek offers companies new opportunities, but it can also present challenges. The various models have different implications under labor law and require careful planning. It is crucial that the chosen model not only aligns with the company’s goals but also complies with labor law requirements and takes employees’ interests into account.
If you are considering introducing a 4-day workweek, we would be happy to assist you with all business and tax-related matters. We have direct points of contact in Düsseldorf and Oberhausen. Please contact us to schedule a consultation. We look forward to meeting you.
