Sanctus – The standard working week may soon reduce from 40 hours to 35, with no reduction in pay, under proposals approved by the government yesterday. According to sources within cabinet, Business Secretary Xander Morgan sought and received approval for his department to work on legislation amending the Working Time Act, which could be introduced to the House before the end of the year.
The proposed changes would see employees who are contracted as “full time” working a standard working week of 35 hours, or approximately 7 hours a day, down from the existing 40 hours per week or 8 hours a day. Crucially, however, these employees would not see a pro-rata reduction in their salary or wages, and would retain their existing pay. Thresholds for overtime would also be adjusted downward, where employees would be entitled to 1.5x their hourly rate from the beginning of the 36th hour of work per week. The move comes following lobbying by both trade unions and organisations representing working mothers, both of which claim Sanctaria should move toward a more modern approach to a work-life balance, in addition to making it easier for mothers to enter and remain in the workforce.
Business groups, however, have responded to the reports with some scepticism. Representatives of smaller businesses and employers have claimed that the reduction in working hours, without the associated reduction in pay, would have “significant financial implications” and make it harder for family-owned businesses to compete with major chains. Some employer groups have indicated that opening hours for many businesses may have to be scaled back to reflect new staffing requirements under a 35 hour week, which would have a negative impact on consumers.
Opposition parties have so far been largely silent on the reports, with a spokesperson for the Sanctarian Conservative Party saying that until they saw the actual heads of legislation, which they stress is still “unconfirmed reporting”, they wouldn’t be able to give a detailed response. However, the SCP have said that “serious considerations to the economic impacts” of the proposed legislation would need to be made, and that “a blanket 35 hour week rather than a more targeted one for parents of young children, or people with disabilities trying to enter the workforce” may not be the best approach.
It is understood that the Department of Business, Industry & Trade will publish a memo in the coming weeks confirming the cabinet decision and the broad schema of their approach to amending the legislation, with the first legislative drafts before the House before they break for Christmas. Sources within the Democratic Left government, however, don’t anticipate any changes to take effect before 2028 or 2029.
ROBYN GRAY, Industry Affairs Correspondent
