From April 2024, flexible working became a day-one right, with further reforms anticipated in 2025 which are likely to require employers to provide a “reasonable” explanation for rejecting requests. Traditional 9-5 routines are giving way to more flexible, employee-centric models and compressed hours contracts are quickly becoming one of the most attractive options for employees.
What are compressed hours?
Compressed hours is a type of flexible work arrangement where employees compress their 40-hour workweek from the more traditional five days to fewer days. There are multiple ways to approach compressed hours:
• employees can decide to work two extra hours from Monday to Thursday and then take off every Friday.
• employees can decide to work for an hour additionally for four days and then take off half of the fifth day – usually the Friday.
• employees can add one hour to each working day for nine days and then take the tenth day off – the ‘9 day fortnight.’
Benefits of compressed hours for employers and employees
• employer benefits: increased productivity, employee retention and reduced burnout.
• employee benefits: better work-life balance and time for personal development.
• challenges to consider: potential bottlenecks and the fact that some roles are simply not appropriate for this type of working arrangement.
Why are compressed hours contracts becoming popular now?
Several factors are converging in 2025 to make compressed hours increasingly popular:
1. Post-pandemic workplace changes
Hybrid and remote work proved that productivity doesn’t depend on being in an office 9 to 5. As a result, employers are now more open to flexible arrangements that prioritise output over presence.
2. Employee wellbeing and work life balance
Increased awareness of mental health has led to demand for schedules that reduce burnout. A shorter working week, even if hours remain the same, means less childcare, more family time and time to do other things.
3. Talent retention and recruitment
In a competitive labour market, offering compressed hours is a strong differentiator. Candidates are actively seeking employers who respect flexibility and autonomy — especially younger workers who value lifestyle as much as salary.
4. Legislative support
With the UK government’s ongoing review of flexible working rights, it’s likely that compressed hours will become more accessible by default. Flexible working is a day one right already with employers able to refuse a request based on eight different business reasons. However, under the proposed Employment Rights Bill employers will only be able to refuse a flexible working request if they can prove it is ‘not reasonably feasible.’
How to implement a compressed work schedule
1. To approve compressed work hours, employers should evaluate individual requests, assess workload and team dynamics, establish clear expectations and consider a trial period. If the trial is successful, the contract of employment must be amended to reflect the changes.
2. When determining suitability for different roles, consider the job nature, team structure and company culture.
Calculating holidays for compressed hours workers
To calculate holiday entitlement for compressed hours workers, you need to determine the total annual leave entitlement in hours, then deduct those hours when the employee takes leave. This ensures they receive the same amount of time off and pay as a full-time, standard-hours worker.
When considering working days that fall on bank holidays, the compressed hours worker deducts not one day from their annual leave but the number of hours they would have worked on that day. For example, if the bank holiday falls on a Monday and the employee on compressed hours works 10 hours on Mondays, then the employee gets 10 hours deducted instead of one regular (eight-hour) day.
For advice and assistance please email nicola.goodridge@goodhr.co.uk or call +44 7917 878384