The Centre for Future Work conducted a national survey of Australian workers in 2024 that showed the prevalence and impact of unpaid overtime, finding almost half of all employed workers are unsatisfied with their hours and many are losing significant income to unpaid overtime. The report looks at the gap between desired and actual working hours, highlighting the need to address employment polarisation and reduce unpaid overtime.
The report highlights the uneven distribution of working hours and the prevalence of unpaid overtime. By quantifying the financial cost of unpaid overtime across demographics and occupations, and underscores the significant economic impact of this issue. Additionally, the report discusses the implications of recent industrial relations reforms aimed at addressing insecure work and promoting fair working conditions. It emphasises the need for further action to reduce unpaid overtime and achieve a better balance between work and personal life for Australian workers.
And who is doing the majority of unpaid overtime? According to the June 2022 report by Deloitte and Swinburne University of Technology – Reset, Restore, Reframe: Making Fair Work FlexWork – women are more likely to work unpaid overtime than men. Researchers found that 1 in 4 female health workers are not being compensated for overtime, compared to less than 1 in 5 male workers. Females are also working more hours each week. This disparity is also reflected in other sectors, where women often take on additional responsibilities and work longer hours without compensation.
Reasons for this include Australia’s workplace culture that values long hours and women feeling they need to work longer to increase their visibility for promotional opportunities.
Australian workers tend to work more unpaid overtime compared to workers in many other countries. According to data from the Organisation for Economic Co-operation and Development (OECD), Australia ranks among the countries with the highest average annual hours worked. This includes both paid and unpaid overtime.
Australia's workplace culture emphasises long hours, and there's a historical context to this. The decline of the traditional 38-hour work week and the ambiguity in defining "reasonable additional hours" under the Fair Work Act have contributed to this culture.
In comparison, countries like Germany and the Netherlands have shorter average workweeks and stronger worker protections, emphasising work-life balance. Scandinavian countries, such as Sweden and Denmark, are known for their progressive work cultures that integrate work and life, promoting higher job satisfaction and happiness.