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The first pilot project begins throughout Spain to test the 4-day working week. Through the Official State Gazette, the Ministry of Industry has published this Thursday, April 13, 2023, an aid package aimed at companies that present a plan to reduce by at least 10% the weekly working day.
How does the reduction of working hours from 5 to 4 days a week work?
The proposal to reduce working hours from 5 to 4 days a week does not imply that companies should reduce their employees' salaries proportionally for 4 days of work or that they should work 40 hours a week in 4 days.
The Spanish Ministry of Industry has issued an order stating that participating companies must reduce the weekly working hours for their employees by at least 10%. Therefore, if an employee works 40 hours a week (the most common schedule), he/she will now have to work a minimum of 34 hours.
Companies participating in the pilot program must guarantee a reduction in working hours for at least two years from the time they receive public aid. Despite the reduction in working hours, employees will receive the same salary. This initiative is different from other proposals in the private sector, in which some companies, such as Desigual or Telefónica, have proposed salary reductions for reduced working hours.
Who can apply in Spain?
To qualify for government assistance, the company must be an SME in the industrial sector. That is, it must have fewer than 250 employees and an annual turnover of less than 50 million euros. For the pilot, only full-time workers with an indefinite contract may be considered. In addition, the minimum length of service of the company must be at least 3 years. You can find more information here.
To be accepted, they must demonstrate that their four-day workweek test plan is viable and will not have a negative impact on the quality of the product or service they offer.
The program would partially finance the salaries of employees participating in the pilot for one year. The amount of the aid varies according to the size of the company: 90% of personnel expenses for companies with up to ten employees, 80% for those with 11 to 52 employees, and 75% for those with between 53 and 249 employees.
Will shorter working hours make companies less productive?
The loss of productivity is the biggest concern when implementing a new way of working. It happened at the time with telecommuting and now with the possibility of working fewer hours per week. However, the 4-day workday has been tried before with positive results.
UK companies conducted the largest global trial of the four-day working week between June and December 2020. More than 70 organizations participated in the 4 day week global project and found that almost 95% of employees maintained or improved their productivity, while only 5% experienced a drop. The majority (49%) stated that their productivity improved and 46% that it remained stable. Productivity was not negatively affected and even increased.
The program would partially finance the salaries of employees participating in the pilot for one year. The amount of the aid varies according to the size of the company: 90% of personnel expenses for companies with up to ten employees, 80% for those with 11 to 52 employees, and 75% for those with between 53 and 249 employees.
On the other hand, according to a 2019 OECD report, Mexico is the country where people work the most hours per day, while Denmark is where the least hours are worked. However, Mexico is the least productive country per hour worked. Employee fatigue affects productivity, and reducing working hours could be a solution to increase it and motivate employees.
"In Spain we have a very big problem with productivity, which is linked to attendance and that is why we are the country in the European Union that works the most hours per worker but also one of the least productive."
- Joan Sanchís, professor of Applied Economics at the University of Valencia and author of Quatre dies. Treballar menys per viure en un món millor (Sembra).
Valencia: the first Spanish city to "experiment" with a 4-day work week
From Monday, April 10 and for 4 weeks, the Valencia City Council will be testing the project of the reduction of the weekly working day to 4 days since it coincides with three consecutive Monday holidays and they will move a holiday from January to April.
The weeks of April 10 (Easter Monday), April 17 (San Vicente Ferrer), April 24 (San Vicente Mártir, originally the holiday was January 22) and May 1 (Labor Day) will have only 4 working days. This will serve the City Council to test the impact of working from Tuesday to Friday on people's productivity, mobility, economy, health and leisure.
As of July 20, Valencia City Council's Las Naves innovation center will evaluate the study to provide more details on the results.
