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'Time theft': Study reveals almost $100 billion in unpaid overtime

Since 2009, the Centre for Future Work and the Australia Institute have produced compelling data on ‘time theft,’ a broad term that considers both overwork and unpaid overtime in the workforce.

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A 2019 report found that the average worker performed an average of an additional 4.6 hours of unpaid overtime per week during the year.

Their most recent study Work and Life in a Pandemic: An Update on Hours of Work and Unpaid Overtime Under COVID-19, tells an interesting story about how working conditions changed during 2020. Traditionally, such studies have focused on the late nights or early mornings at the office. But with the rapid and unprecedented shift to home-based work, the question now is ‘what has the impact of COVID-19 been on unpaid overtime?’.

The upward trend has continued.

On average, workers reported they had worked 5.25 hours of unpaid work over the last seven days, an increase of more than 0.7 hours per week from the 2019 figure. Viewed in aggregate, these numbers are staggering.

Unpaid overtime amounts to almost $100 billion dollars of lost income per year, or approximately seven full-time work weeks per worker, per year. All this has occurred in the context of overall work hours falling during the COVID-19 pandemic.

Predictably, the majority of people who work from home are doing some of their work outside of normal working hours, 70 per cent according to the ‘Work and Life in a Pandemic’ report. This blurring of the lines between home and work has challenged some but benefitted others, particularly high-income workers who have transitioned relatively easily to the demands of working from home.

Employers should remember that although much has changed with COVID-19, an employer’s fundamental obligation to protect the health, safety and wellbeing of its employees has not. This obligation extends to any environment where work for that employer is performed, including an employee’s home. As well as attending to your employees’ needs for reliable technology and ergonomic equipment, employers should consider what controls they have in place to ensure employees are not working excessive hours and contributing to the worrying trend described above.

The Centre for Future Work at the Australia Institute has been raising awareness of the ‘time theft’ phenomenon through its annual Go Home On Time Day campaign. In an environment where we have already gone home and are working longer hours than ever, both employers and individuals need to reflect and act on what ‘going home’ looks like in our current reality.

Help and support

The Victorian Chamber’s Health, Safety and Wellbeing team and Workplace Relations team are always available to assist you and your business work best with your staff.

For more information, HSW consulting, training and other support please contact the HSW team on 03 8662 5333 or hsw@victorianchamber.com.au to discuss your needs.

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on (03) 8662 5222.

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