Sick of working unpaid overtime? If you’re a young person, probably

“While the headlines regularly brand all Gen Zs as ‘entitled’, it turns out they’re the most likely to work extra hours without pay.”

Having to stay back late to close up shop or clean up after patrons stay beyond closing time is almost a rite of passage for young people. Some days, you get out right on time and others, you’re cursing annoying customers for lingering beyond their welcome.

If you’re being fairly compensated for the hours you’re stuck staying back, then there’s technically no foul play – even though it is annoying. However, this isn’t always the case. As it turns out, over 40 per cent of young Australians report being expected to work extra hours, without receiving additional compensation.

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A new study from Melbourne Law School’s Fair Day’s Work project surveyed 2,814 workers under 30 and the results are grim. “Our new study has found that wage exploitation is rife among employers who hire young people,” wrote John Howe and Tom Dillon from The University of Melbourne in The Conversation.

What the study found about young people’s working conditions

The study also revealed that 33 per cent of young people surveyed were paid $15 an hour or less, 24 per cent hadn’t received compulsory superannuation, and 36 per cent hadn’t been allowed to take their entitled lunch and rest breaks. The most notorious industries included were accommodation and food services, media and telecommunications, retail trade, and education and training.

None of this will come as much of a surprise to actual young people. While the headlines regularly brand all Gen Zs as ‘entitled’, it turns out they’re the most likely to work extra hours without pay.

Part of the reason this demographic is subjected to dodgy treatment is that young people are less likely to know their rights and feel confident challenging their employers when this line is crossed. Of this cohort, transgender people, non-permanent workers and non-native English speakers are the most vulnerable.

However, there are some surprising stipulations when it comes to overtime. For example, not everyone is actually entitled to it. This depends on the kind of work you do, the role you’re in and what your job outlines. In some cases, you might not be able to claim overtime but you could be entitled to other forms of compensation, like time in lieu.

Overtime can feel like a confusing topic – breakdowns and explainers are typically steeped in industry jargon and technical terms that mean little at first glance. So, to break down, I enlisted the help of career expert Lara Nercessian.

What exactly is overtime?

Citing Fair Work, an independent workplace body, Lara says that overtime is any work performed beyond the hours set out in your contract. Usually, if you work extra hours, you should be entitled to overtime pay, though this depends on your role. For example, if you’re a wage worker and your pay is dependent on the time or amount you work, you’re more likely to be entitled than a salaried worker who is paid an agreed annual amount with sick and holiday leave.

In some cases, your contract can specify if you’re expected to work overtime occasionally as part of your role, which means you won’t be eligible for overtime compensation. Though you might instead be able to claim time in lieu instead.

Overtime vs time in lieu

Time in lieu is an agreement that allows you to take time off, rather than receive pay for additional hours worked. Effectively, this lets you claim back any excess time you’ve spent working. “This allows for employees to effectively ‘bank’ additional hours worked and take the time off at a later date, usually within a set or agreed period of time,” Lara explains. So if you’ve worked an extra half day, then you could arrange to take a paid half day off the week later and it evens out.

Is overtime mandatory?

Though overtime might feel unjust, whether you’re required to do it depends on your role, award or agreement.

“Employers can request for employees to work overtime if it is deemed reasonable,” she explains. “Some factors to consider may include position or level of seniority, industry standards, compensation, personal circumstances and what’s been laid out in your contract.” However, if the request is deemed unreasonable, Lara says you do have the right to refuse overtime hours.

Compensation for overtime

Generally speaking, if you’re required to work additional hours and your role and responsibilities stay the same, then Lara says you’re likely entitled to overtime. “In the case where your roles and responsibilities change due to the increase in hours, for example, you’re required to open or close a store or take on a leadership or supervisory position, then you could be entitled to a higher rate,” she tells me. Once again, exact rules depend on your specific job.

“While there isn’t a strict cap in terms of how much overtime an employee can work in a week, the number of hours need to be deemed as reasonable,” she says. “For example, an additional two to three hours per week would likely not be considered unreasonable, however employees would need to ensure that there is a justification for working those overtime hours.”

What can you do if it’s getting to be too much?

In a perfect world, the lines of communication with your boss would be open and receptive. But that’s not always the case, and if you feel like you’re starting to clock up a few too many hours of overtime, then it’s hard to know what your options are.

The first step, Lara explains, is to look at your specific award or enterprise agreement to see what covers your role, which you can find at Fair Work. If you’ve had a chance to look over these details and still feel there’s a discrepancy between how much overtime you’re working and whats expected of you, then your next step is raising it with your direct manager or HR team so they have a chance to respond.

However, the bottom line is that employers are obligated to make sure they’re paying their staff in accordance with legislative requirements. If you have raised the matter internally and no resolution has been made, then you’re best seeking tailored help from the Fair Work ombudsmen or support from your union.

Though it might feel intimidating to speak up, it’s important to arm yourself with knowledge and lean on external support if you need it. After all, if you’re not being paid for it, then you’re working for free.

For more on overtime, head here.