[Australia] Workers missing $131 billion in unpaid overtime

[Australia] Workers missing $131 billion in unpaid overtime
28 Nov 2023

New research has revealed that the average Australian worker misses out on more than $11,000 in wages a year as a result of unpaid overtime, 9News reports.

The Go Home On Time Day report was released on November 22 by the Australia Institute's Centre for Future Work. It found that Aussie employees are doing an extra 5.4 hours of unpaid work every week.

Over the course of a year, this adds up to 281 hours - or more than seven full working weeks - and the report said this discrepancy is costing workers an average of $11,055 in unpaid overtime or a collective $131 billion when added up across the country's entire workforce.

"This survey shows just how uneven the labour market is," Dr Fiona Macdonald - Centre for Future Work policy director - said.

"We've got many workers, especially casuals in insecure jobs, wanting more hours. At the same time, employers are more likely to demand long hours, including large amounts of unpaid overtime, from full-time workers.

"Record-low unemployment should have pushed both satisfaction with working hours and paid hours higher as employers scrambled to fill labour shortages.

"Instead, 'time theft' has actually blown out by 57 hours per worker since 2022 and has returned to near pandemic-era levels."

Full-time employees carried out the most unpaid overtime at 6.2 hours per week, according to the survey. While more than 19 per cent of hours worked by casual staff were reportedly found to have been unpaid overtime, more than any other employment status.

Young people aged 18-29 experienced a greater occurrence of time theft than other age groups with 7.4 hours of unpaid overtime per week, compared to 5.3 for 30-39-year-olds, 4.5 for 40-49, 4.3 for 50-59 and 3.6 for workers in their 60s or older.

"This cohort is particularly vulnerable to exploitation as workers tend to have less experience and qualifications, placing them at a disadvantage competing for jobs, even in a tight labour market," the report stated.

"Even with low unemployment the pervasiveness of job insecurity and underemployment makes workers vulnerable to time theft: workers are pressured to accept demands for unpaid overtime, for fear of having their hours cut, not having temporary contracts renewed, or losing their jobs altogether.

"Young people are also overrepresented in casualised industries rife with time theft, such as hospitality and retail, where it is common to be expected to complete unpaid work (such as opening or closing a store or restaurant, or unpaid 'training' time)."


Source: 9News

(Quotes via original reporting)

New research has revealed that the average Australian worker misses out on more than $11,000 in wages a year as a result of unpaid overtime, 9News reports.

The Go Home On Time Day report was released on November 22 by the Australia Institute's Centre for Future Work. It found that Aussie employees are doing an extra 5.4 hours of unpaid work every week.

Over the course of a year, this adds up to 281 hours - or more than seven full working weeks - and the report said this discrepancy is costing workers an average of $11,055 in unpaid overtime or a collective $131 billion when added up across the country's entire workforce.

"This survey shows just how uneven the labour market is," Dr Fiona Macdonald - Centre for Future Work policy director - said.

"We've got many workers, especially casuals in insecure jobs, wanting more hours. At the same time, employers are more likely to demand long hours, including large amounts of unpaid overtime, from full-time workers.

"Record-low unemployment should have pushed both satisfaction with working hours and paid hours higher as employers scrambled to fill labour shortages.

"Instead, 'time theft' has actually blown out by 57 hours per worker since 2022 and has returned to near pandemic-era levels."

Full-time employees carried out the most unpaid overtime at 6.2 hours per week, according to the survey. While more than 19 per cent of hours worked by casual staff were reportedly found to have been unpaid overtime, more than any other employment status.

Young people aged 18-29 experienced a greater occurrence of time theft than other age groups with 7.4 hours of unpaid overtime per week, compared to 5.3 for 30-39-year-olds, 4.5 for 40-49, 4.3 for 50-59 and 3.6 for workers in their 60s or older.

"This cohort is particularly vulnerable to exploitation as workers tend to have less experience and qualifications, placing them at a disadvantage competing for jobs, even in a tight labour market," the report stated.

"Even with low unemployment the pervasiveness of job insecurity and underemployment makes workers vulnerable to time theft: workers are pressured to accept demands for unpaid overtime, for fear of having their hours cut, not having temporary contracts renewed, or losing their jobs altogether.

"Young people are also overrepresented in casualised industries rife with time theft, such as hospitality and retail, where it is common to be expected to complete unpaid work (such as opening or closing a store or restaurant, or unpaid 'training' time)."


Source: 9News

(Quotes via original reporting)

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