For decades, the “Productivity Crisis” has been Canada’s economic boogeyman. We work long hours, yet our output per hour lags behind the US and Europe.
In 2025, dozens of Canadian companies—from law firms in BC to non-profits in Toronto—ran a radical experiment: 100% pay, 80% hours, 100% output.
The results for 2026 are now public, and they contradict everything traditional economists predicted. Revenue went up. Burnout crashed. And in a tight labour market, retention hit near-perfect levels.
Here is the technical breakdown of the “4-Day Week Global” pilot data, the “Imagine Canada” success story, and why the Federal Government is moving in the exact opposite direction.
The Data: It’s Not About “Less Work”
The biggest misconception is that a 4-day week means doing less. The pilot data proves it actually means wasting less.
The “4 Day Week Global” Report (2026):
Across participating North American companies, the long-term results were unambiguous:
- Revenue: Rose by an average of 15% during the trial.
- Burnout: Dropped by 69% among staff.
- Retention: Turnover plummeted. 95% of employees said they wanted to continue the schedule.
The “Imagine Canada” Case Study:
One of the standout Canadian participants, Imagine Canada, reported that by eliminating “low-value” meetings and protecting deep-work time, they maintained 100% of their output while giving staff Fridays off. (Source: Imagine Canada Pilot).
The Counter-Move: The Federal “Return to Office” Mandate
While the private sector innovates, the public sector is doubling down on 1990s management styles.
The “July 2026” Order: In a move that shocked unions, the Treasury Board has ordered federal public servants to return to the office 4 days a week starting July 2026.
The Fallout: Unions like CAPE and PSAC are calling this “a slap in the face” that ignores the productivity gains of flexible work. While private companies use flexibility to recruit talent, the federal government is risking a brain drain to enforce physical presence.
The Scorecard: 4-Day Week vs. Traditional 5-Day
For business owners and managers, the choice is becoming a competitive advantage.
| Metric | Traditional 5-Day Week | 4-Day Week Pilot (100-80-100) |
|---|---|---|
| Productivity | Lower per hour. (Parkinson’s Law: “Work expands to fill time.”) | Higher per hour. (Forced prioritization). |
| Sick Days | Average ~8 days/year. | Reduced by 40-60%. |
| Recruitment | Standard. | Magnet. (Applications increase ~300%). |
| Revenue Impact | Baseline. | +15% (Due to energized staff). |
People Also Ask
Is the 4-day work week legal in Canada?
Yes. There is no law preventing a 4-day work week. In fact, most pilots operate on the “100-80-100” model: 100% pay, 80% hours, for 100% output. This is a private contract between employer and employee.
Which Canadian companies have a 4-day work week?
Notable participants include Imagine Canada (Non-profit), YLaw (BC Law Firm), Sensei Labs (Tech), and the Town of Cochrane (Municipal). These organizations have reported high retention and sustained productivity.
Does the federal government have a 4-day work week?
No. In fact, the Treasury Board has moved in the opposite direction, mandating a 4-day Return to Office for public servants starting July 2026. This has created significant friction with public sector unions.
Did productivity drop during the 4-day week pilots?
No. According to the 4 Day Week Global Report, productivity remained stable or improved, and revenue actually increased by an average of 15% across participating companies.
Is low productivity hurting your business? See how the new Capital Gains Tax Rules might be making it worse. Or, check out the Deep Dive on Canada’s Productivity Crisis.