Is the 4-Day Work Week the New Remote Work? Why Flexibility is Redefining Australian Careers

It's been six years since the COVID-19 lockdowns ignited the working-from-home debate, but now a new trend is emerging that could reshape how we work. The remote work conversation, once a hot topic, might be taking a backseat to something even more transformative.

For years, WFH has been at the center of a power struggle between businesses and employees. During the pandemic, remote work became essential for office-based operations. When restrictions lifted, it shifted from a necessity to an expectation for many, leading to pushback as companies tried to bring staff back to the office. This resulted in hybrid working becoming the norm, with employees resisting full-time in-person schedules.

In 2024 and 2025, major companies introduced five-day in-office mandates, sparking unrest. Recently, some have even reversed these hardline stances, creating a sense of whiplash in the ongoing debate. But now, a new contender is rising: the four-day work week.

According to Constance Aloe, HR Strategist and Founder of Distinctive People, Australia will see a rise in four-day work weeks and compressed weeks in 2026. She states, "Flexibility is the new currency. It is no longer about the occasional WFH day. Employees want shorter weeks, reduced hours without reduced pay, job share options, compressed schedules and real support when returning to work." These benefits are becoming key factors in choosing employers.

Common implementation models include the 100:80:100 model, where staff keep 100% of their pay but work 80% of the hours while maintaining 100% productivity. Other options involve shorter weeks with less pay or condensed 40-hour weeks over four days. Aloe believes this model could overtake the WFH debate, noting that remote work discussions have become "emotional, political and commercial all at once." She explains, "We’re now seeing state governments weigh in on WFH, while large employers push return-to-office mandates to justify long-term lease commitments. That’s made the WFH conversation harder to navigate cleanly."

In contrast, a compressed work week offers businesses more commercial leverage and allows flexibility without reopening the "where you work" debate. Aloe has observed a rise in businesses using four-day weeks to attract and retain high-performing talent, as employees prioritize work-life balance.

Over the past few years, Australian businesses trialling four-day weeks have increased. The Australian Council of Trade Unions (ACTU) proposed a four-day week with no loss of pay at the Economic Reform Roundtable in August last year, suggesting sector-specific alternatives like more rostered days off or increased annual leave. However, Prime Minister Anthony Albanese rejected the idea, stating the government had "no plans" to adopt it.

Despite this, companies like Medibank, Bunnings, and Palise Property have implemented trials. Palise Property introduced a parental return-to-work policy allowing new parents to work four days a week while being paid for five, with full benefits. Founder Steve Palise said the policy aims to give parents 20% more time with their children without forcing a pay cut. He noted, "While this policy is currently focused on parents returning from leave, it’s opened our eyes to how flexibility can actually improve performance, loyalty, and wellbeing."

A news.com.au poll in 2025 found that 73% of 2646 voters agreed a four-day week should become the norm in Australia. A peer-reviewed six-month trial of 2896 employees across 141 organizations in multiple countries, published in Nature Human Behaviour, found that a four-day week with full pay improved physical and mental health, reduced burnout, boosted performance, and increased job satisfaction.

However, Aloe warns that a four-day week only works in businesses with strong operating systems. She cautions, "If the foundations aren’t there e.g. clear roles, good workflows, realistic workloads etc a four-day will expose cracks in the culture and the operating systems quickly." Small and medium businesses face challenges like upfront costs and the risk of burnout if work is squeezed into fewer days without proper systems.

Aloe links this movement to a broader attempt to redesign work itself, including reforms around pay transparency and the right to disconnect. She advises, "Smart businesses are trying to get ahead of that curve rather than react to it."