Four-day working week trial run in South Africa

Four-day working week trial run in South Africa

• 11 December 2023
• Law
• South African Accounting Academy

Twenty-seven companies participated in the trial (and a further one company in Botswana). The majority were in the professional services sector with others in marketing, IT, finance, healthcare, recruitment, social services, and consulting. From the trial group, 50% of employees and businesses operated on a hybrid model, while about 30% operated completely remotely with only 19% of employees physically at their employer’s premises on a full-time basis. South African employers were more flexible and creative in identifying the particular work days compared to other country trials. The majority made provision for employees to choose the days or times that were most suitable for them, while not compromising on the interests of the employers. Some employers provided an option of a Monday or Friday or a Wednesday or Friday, while others settled on a Friday.

The results demonstrated an overall positive impact on the employers (productivity and performance) and employees (reduction in burnout, reduction in fatigue, more time spent exercising, increase in work-life balance, increase in satisfaction with time, and increase in mental health well-being). To some extent, an increase in life satisfaction and a decrease in work stress were also recorded. There was minimal impact concerning travel time and other environmental factors. Of the employers in the trial, 94% indicated that either they intend to continue with a four-day work week or are considering implementing it on a long-term basis.

However, none of the companies that participated in the trial are Johannesburg Stock Exchange listed companies and the majority are not large-scale employers. This means that the efficacy of a four-day workweek in many major local industries remains uncertain. 

Click here to access the article:

https://www.cliffedekkerhofmeyr.com/en/news/publications/2023/Practice/Employment/employment-law-alert-5-december-four-day-working-week-trial-run-in-south-africa

Relevance to Auditors, Independent Reviewers & Accountants:

• Your clients must comply with Labour Legislation, including the Occupational Health and Safety Act, Unemployment Insurance Act, Compensation Fund Act, Basic Conditions of Employment Act (BCEA), and National Minimum Wage Act. 

• If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (Non-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc. – depending on your role as auditor, independent reviewer, or accountant.

• As an employer, you also need to comply with Labour Legislation in your workplace.

• You should be aware of the implications of a 4-day work week on your employees and organisation.

Relevance to Your Clients:

• An employer and entity (company or close corporation) must comply with Labour Legislation – which includes the Occupational Health and Safety Act, Unemployment Insurance Act, Compensation Fund Act, Basic Conditions of Employment Act (BCEA), and National Minimum Wage Act, otherwise, they could be held liable.

• Employers should be aware of the implications of a 4-day work week on their employees and organisation.

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