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Are you losing more than $21,000 a year in unpaid overtime?

We’ve all been there: staying back late to finish a task, skipping a lunch break, or putting in an hour or two over the weekend to make our workload more manageable come Monday. 

But how much are you really giving your employer by doing this?  

A new landmark study by Unions NSW has put a dollar figure on just that.  

For an average worker on a yearly income of $96,660, the financial value of this unpaid work is $21,563 per year.  

And while some sceptics may think this isn’t widespread practice, the survey of 5000 employees (including from the finance sector) proved otherwise: 86% reported working unpaid overtime, with the average amount of unpaid work clocking in at 9.08 hours each week.  

Workers take report to the top  

This is the first large-scale survey-based research into unpaid overtime in Australia. Now that we know how widespread the practice of unpaid overtime is, unions are determined that this report will make a practical difference to improving people’s work/life balance.  

In October, FSU members and union workers met with Federal Minister for Employment and Workplace Relations Murray Watt to discuss the report findings and what the government must do to clamp down on the problem.  

“Change is possible and we can do it together,” said FSU member Maurice Farrell, who met with Minister Watt.  

“Imagine a world […] where your employer would need to report how much overtime you’re really putting in.”  

That’s exactly what unions are asking the Federal Government to do – improve employer record keeping obligations, and introduce transparent employer reporting requirements, among other things.  

Under the Fair Work Act, employees can be required to work more than 38 hours a week for no extra pay if the “additional hours are reasonable.”  

What is considered “reasonable” is not defined in the legislation and subject to interpretation by employers.  

“I’m looking forward to a time where we’ll go to work and we’ll know what is and isn’t reasonable overtime,” said Maurice.  

FSU member Robin Mayo, who also met with Minister Watt, agreed, adding that he was hopeful of securing more clarity through stronger legislation.  

“It was really good to share some of the experiences from my workplace […] and I think it was well received.  

“Hopefully the minister takes this on board and this legislation comes into effect.”  

Untangling cultural ‘norms’   

Unions NSW are calling for legislative changes that will go some way to breaking down what has become a cultural ‘norm’ of working unpaid overtime, particularly in the finance sector.   

Specifically, unions are calling on the Federal Government to:  

  • Re-introduce the 38-hour week – introduce legislative protection for employees to refuse to perform unpaid overtime.   
  • Improve employer record keeping obligations – require employers to record the amount of unpaid overtime their employees perform.  
  • Introduce transparent employer reporting requirements – require employers to report annually on the amount of paid and unpaid overtime their staff have performed.  
  • Mandatory paid volunteer/social support leave – 100 hours paid leave a year to be used when volunteering for a not-for-profit, community or social justice organisation.   
  • Amend National Employment Standards to include five weeks’ annual leave for all workers.  

You can read Unions NSW’s full report here.  

What does the research tell us?  

  • 86% of survey respondents reported working unpaid overtime each week.  
  • On average, survey respondents reported working 9.08 hours of unpaid work each week.  
  • In an average work year (48 weeks) this would represent 58.1 days or 11.6 weeks of unpaid work. The financial value of this unpaid work is $21,563 per year for an average worker on a yearly income of $96,660.  
  • 70% of survey respondents reported working overtime on weekends. Almost half of this number reported that they worked more than two weekends per month.  
  • The majority of survey respondents (64%) believe that refusing a request to perform unpaid overtime was career limiting. This figure increased to over 71% for those earning an annual salary above $110,000.  
  • 77% of respondents believe working unpaid hours is having a negative impact on their life outside of work.  

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