Numerous countries in Europe are testing more flexible work arrangements. The UK in January began a pilot programme of a four-day working week, with employees receiving the same salary for fewer hours. A similar programme in Iceland began in 2019. Sweden, too, has trialled a six-hour working day.

“Luxembourg cannot afford not to react to guarantee the attractiveness of our labour market,” said Engel.

The minister cited statistics showing that people in Luxembourg work more hours than in neighbouring countries. National statistics office Statec in 2019 said that a full-time employee in the grand duchy works 1,701 hours per year, compared to 1,677 in Germany, 1,544 in France and 1,495 in Belgium.

Belgium earlier this year said it would test letting employees work their 38-hour week in four days instead of five, but Engel said that this wasn’t beneficial for work-life balance as it crams more into the four days being worked.

“We must be able to talk about working hours, especially in the context of a better work-life balance and better health,” he said. People who work fewer hours are more productive, studies have shown, but the minister said that concerns from employers over a lack of available staff must be taken seriously.

At the same time, work accidents, burnout and depression have significant negative impacts on the economy, people and the healthcare system, Engel said. “It’s obvious to me that the reduction of working hours can have a number of positive effects for employees and employers.”

Engel aims to deliver objective data for a discussion to reduce working hours through the study. He did not say when the results would be available for debate with MPs but added it would be crucial to include businesses and labour unions in the discussion.

The government in its 2018 to 2023 coalition agreement reduced working hours by adding an extra day of annual leave and the 9 May public holiday. However, there is no scope in the agreement to change the 40-hour week. But this could change under the next government, with election scheduled for October 2023.