In reforms designed to shift the balance of power from companies to workers, a system of “compressed hours”, which lets an employee work their contracted week’s hours in four days rather than five, will be included in the package of new rights for workers.

Workers are set to be given new rights to demand a four-day week, under Labour’s workers’ rights reforms being championed by Deputy Prime Minister Angela Rayner.

In reforms designed to shift the balance of power from companies to workers, a system of “compressed hours”, which lets an employee work their contracted week’s hours in four days rather than five, will be included in the package of new rights for workers.

The Labour government has denied that it would impose the working patterns on businesses. While companies are presently under no obligation to agree to flexible working patterns, under the proposed changes companies will be legally obliged to offer flexible working from day one except where it is “not reasonably feasible”.

Joe Ryle, the director of the 4 Day Week campaign, said: “This is a welcome move from the government, which recognises that the future of work we are heading for is a four-day week for all. However, these proposals would only allow workers to compress their working hours rather than reduce them, which we have found is key for improving work-life balance and also maintaining productivity.

“Compressing the same amount of hours into four days rather than five can be an important first step on the road to a true four-day week – but reducing overall working hours is crucial.”

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