Across Australia, four-day workweeks are increasing in popularity as they have been reported to increase employee retention, productivity and improve employee work-life balance and mental health. The question isn’t “if” it can work, but “how” to make it work in your business. This guide shows how organisations can implement a 4-day work week across their business without compromising on productivity or compliance.
The Compelling Business Case: Is It Just a Fad?
The Productivity Promise:
When deciding whether to do a 4-day work week trial, it is important to first understand the different types of models you can work with:
- 100:80:100 Model: In this model, employees are expected to commit 100% of the output in 80% of the time while receiving 100% of the pay.
- Compressed Week: A compressed week model is the same total hours but over fewer days, ie x4 9-10 hour shifts. This model works well for rostered work but could increase fatigue and has different payroll implications.
Beyond Productivity: The Strategic Advantages:
The 4 Day Week Global report showcased that 95% Australian businesses that trialled the 4-day work week planned to continue after the trial. Positive results also showed that sick and personal days fell by 44%, with 64% reporting less burnout, and 96% of employees were satisfied with the program and wanted to continue.
Here are some of the key strategic advantages identified:
- Talent attraction & retention: Pilot companies rated attraction at 8.3/10 and saw resignations fall by ~8.6% in ANZ pilot data.
- Wellbeing → business performance: Reduced burnout (-64%) and fewer sick days (-44%) translated into real cost savings and more consistent delivery.
- Employer brand: Well-known Australian organisations are testing variants, including Medibank (expanding to 500 employees under a 100:80:100 model) and Bunnings (compressed hours).
The Financial ROI: Separating Fact from Fiction:
There are several ways to crunch your numbers to see if the four-day work week is profitable for your organisation.
Here are our suggested calculations and metrics to look at:
Absenteeism savings: ($ daily labour cost × historical sick/personal days) – (same with 4-day data or −44% proxy)
Turnover savings:
(annual resignations × 8.6% reduction) × (replacement cost per role) (Recruitment + training + ramp time).
Overheads (for “dark office” days):
Estimate energy/cleaning reductions for one day per week; this is more relevant for office-centric organisations or coworking spaces where you rent by the day.
Productivity delta:
If you are trialling a 4-day working week in Australia, we recommend comparing output KPIs pre and post (utilisation, tickets closed, billable hours, throughput) to determine productivity metrics.
Navigating the Challenges: What to Expect
The ‘5-Day Workload in 4 Days’ Problem:
The number one deterrent for staff, managers and owners is the fear that getting 5 days of work done in 4 days may not be possible. However, the solution isn’t about working faster but rather working smarter.
Here is how you can restructure your workforce to improve productivity:
- Strip recurring meetings; time-box and move to written updates.
- Standardise handoffs and SOPs; use templates/checklists.
- Automate low-value steps (routing, approvals, reporting).
- Protect focus blocks; align SLAs with staffing patterns.
Not a One-Size-Fits-All Solution:
Every organisation is different, so the model they choose for the four-day working week will change. For example, client-facing jobs such as retail, hospitality or healthcare often need to choose the compressed weeks model or staggered rosters instead of the 100:80:100 model. The model organisations choose and how they go about implementing it are determined by their specific needs.
Communication is Key:
When looking to trial a 4-day work week, it is important to prioritise communication across the organisation to gain insight into how employees feel about it.
Here is what we recommend:
- Run open/anonymous forums for employees to leave feedback.
- Communicate which model you will trial, such as 100:80:100 or compressed weeks.
- Survey pre-trial, mid-trial, post-trial.
- Keep a single source of truth (policy + schedules).
- Share the metrics you’ll use to decide whether you should proceed with it or not.
Actionable Roadmap: How to Implement a Trial (The E.L BLUE Approach)
When setting up the 4-day working week in Australia, here is the step-by-step roadmap we recommend to follow:
Step 1: The Assessment Phase:
For the assessment phase, it is important to address whether it is feasible, what the baseline KPIs are and which stakeholders need to be involved. When checking if it is feasible, see if any coverage is required, and if so, a compressed week approach may be best. Next, mark out your baseline KPIs to record data against. Lastly, ensure payroll, managers and legal teams are all aware of the upcoming trial.
Step 2: Choosing Your Model:
Depending on the assessment phase, organisations should have a clear picture of which model is best. Here are the pros and cons of each:
100:80:100
Pros: Biggest mental health and wellbeing uplift; talent magnet; forces process improvement.
Cons: Requires serious redesign; not always feasible for continuous service.
Compressed week (e.g., 4 × 9.5–10 hours)
Pros: Easier for rosters/coverage; minimal contract changes.
Cons: Fatigue risk; careful handling of overtime, public holidays, and breaks.
Step 3: The Trial Period:
Once organisations have selected the model and the trial period they want it to take place (3-6 months), they must keep track of the following to ensure accurate testing:
- Set guardrails: Coverage rules, “on-call” expectations, blackout periods.
- Measure weekly: Output KPIs, errors, customer metrics, wellbeing, work-life balance reports, and absenteeism.
- Document: Update policy, letters of variation, and any rostering agreements.
- Decide: Expand, adjust, or revert based on data—then communicate the “why”.
If organisations have followed the recommended steps, they should have a clear indication of the success of the 4-day work week. Need a partner to plan the assessment, policies and measurement? E.L Blue offers outsourced HR services, trusted workforce planning services, and hr compliance support to de-risk your trial.
The Crucial HR and Legal Questions
To guide your organisation further, here is guidance from the Australian Fair Work Commission on what compliance is expected of you.
Public Holidays and Leave Entitlements:
According to the Australian Fair Work, Public holidays (not worked): Full-time and part-time employees are paid their base rate for their ordinary hours if absent on a public holiday. Base rate excludes loadings/penalties.
According to the Australian Fair Work, Annual leave accrual: Accrues based on ordinary hours worked (typically 4 weeks per year for full-time; pro-rata for part-time), regardless of distribution across days.
According to the Australian Fair Work, the Maximum weekly hours: Full-time max is 38 ordinary hours (averaging is permitted by award/EA agreements).
Fair Work Act & Flexible Work Requests:
According to the Australian Fair Work Flexible working arrangements, eligible employees (e.g., parents/carers, disability, 55+, family violence) can request flexible work; employers must respond in writing within 21 days and can only refuse on reasonable business grounds (after following specific steps).
Alternative Models for Service-Based Businesses
The 9-Day Fortnight:
For industries that can’t do the four-day working week model, a 9-day fortnight is a good alternative. In this model, staff work slightly longer days over nine days and get one day off each fortnight.
Staggered Rostering:
For businesses that need to be open 5-7 days a week, whilst still wanting to give employees a 3-day break, staggered rostering is a good solution. You can split the teams out and use rotating rosters to give employees separate times off.
The Future of Work: A Glimpse Forward
The Role of AI and Automation:
AI can remove low-value tasks (routing, summaries, QA checks), enabling the same output in less time, which is ideal for the 100:80:100 model. The flip side: if mismanaged, AI can fuel “always-on” expectations. It is important to treat technology as an enabler to protect focus time and shorten cycles, not as a reason to raise unreasonable baselines.
The Final Word:
The 4-day working week in Australia isn’t a gimmick; it’s a management and design challenge. The companies that win treat it as a structured change project with clear KPIs, tight compliance, and great communication. Whether you choose 100:80:100, compressed hours, a 9-day fortnight, or staggered rosters, the outcome is the same: a sharper, healthier, more attractive place to work and a happier and more productive employee.
If you’d like a hand assessing feasibility, drafting compliant policies, and running a no-surprises trial, we’re here to help: E.L Blue’s outsourced HR services.
Frequently Asked Questions
Is a 4-day week legal in Australia?
Yes, if you comply with the NES, relevant awards/EAs, WHS, and handle requests under the Fair Work Act correctly (21-day written response; reasonable business grounds).
How do public holidays work on a compressed week?
Pay is based on ordinary hours (base rate) for full-time/part-time employees who would ordinarily work that day. Set substitution or top-up rules in policy/EAs for 10-hour rosters.
Will productivity really hold?
ANZ pilot data and Australian case studies say it does or improves when you redesign work. Plan the trial like a process-improvement program, not just a roster tweak.
What if my business needs 5-7 day coverage?
Use 9-day fortnights or staggered rosters to keep doors open while giving individuals a 3-day break.