What is the four-day week proposal?
The ARA has proposed that full-time employees under the Retail Award be allowed to work 38 hours over four days, rather than the standard five-day week. This aims to provide flexibility for employees, such as longer weekends or shorter daily commutes, while maintaining full-time entitlements.
This change would not be mandatory. Employers and employees must mutually agree to the arrangement in writing.
Who benefits from this change?
- Employees seeking improved work-life balance
- Parents needing flexible hours
- Employers wanting to modernise scheduling
- Businesses with peak-period staffing requirements
By condensing the week, businesses can retain high productivity while also supporting employee wellbeing.
When would it be available?
The Fair Work Commission is still reviewing the proposal. If adopted, we could see implementation start in 2025, pending consultations and feedback from unions, employers, and stakeholders.
Where can it be applied?
Any retail business in Australia covered by the General Retail Industry Award, from national chains to boutique outlets.
Why consider a four-day week?
Recent studies show that four-day weeks can improve:
- Employee retention
- Productivity
- Mental health
In trials both globally and in Australia, businesses reported reduced absenteeism and increased staff satisfaction.
How to Implement This in Your Business
- Seek written consent from employees
- Adjust rosters to meet operational needs
- Use Workstem’s Rostering tools to build custom 4-day patterns
- Monitor total work hours to avoid compliance issues
Workstem’s payroll platform automatically calculates overtime, ensuring compliance with award conditions even under new shift structures.
How Does Workstem Help?
Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.
Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and custom rule set. We have integrated our system with Xero and NetSuite as well to bring you a complete HR SaaS solution for your business.
Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!
FAQs about GRIA’s Four-Day Week Proposal
Q1: Does a four-day week reduce employee pay?
A1: No. It’s about redistributing 38 hours across four days, not reducing total hours.
Q2: Can I force all employees onto this model?
A2: No. The proposal is opt-in and requires mutual agreement.
Q3: What if someone works beyond 38 hours?
A3: Standard overtime and penalty rates still apply. Ensure tracking through tools like Workstem.
Q4: What are the risks?
A4: Poor planning could result in fatigue or operational gaps. Proper rostering is essential.
Q5: Will this affect part-time employees?
A5: The focus is on full-time roles, but part-timers may still benefit if rostering flexibility increases.
Read more:
How to Keep Your Payroll System Updated with General Retail Industry Award Changes?
When to Pay Overtime under the Retail Award: Triggers and Rates
Rostering for General Retail Industry Award [MA000004]
How to Manage Break Entitlements Under 2025 Retail Award
