Unpaid overtime and the ‘right to switch off’: Employer guide
Jade McEvoy, people consultant from employment law, HR and health and safety firm AfterAthena looks at research from Startups that shows more than third (39%) of employers said they consider it either necessary or acceptable for employees to work beyond their contracted hours.
At the same time, more than nine of ten businesses supported the government’s proposed ‘right to switch off’.
HiBob additionally found more than two in five (42%) workers do not receive any additional compensation for overtime worked, meaning these individuals work a yearly average of £4,022 for free.
Over half (55%) of workers thought employees should be expected to make some personal sacrifices of time or convenience to earn raises or promotions, and six in ten (58%) were willing to do this themselves.
What do these statistics say?
The statistics highlight a notable gap between employer expectations and employee wellbeing. While 39% of employers consider overtime necessary or acceptable, 42% of employees receive no compensation for extra hours, essentially working for free.
This raises concerns around fairness, employee morale, and long-term productivity. More importantly, the expectation of unpaid overtime is likely to negatively affect mental health, increasing stress, fatigue, and disrupting work-life balance. Over time, this imbalance could impact both individual wellbeing and the overall effectiveness of the organisation.
What are the ramifications of unpaid overtime work, and the expectation that employees work overtime?
Unpaid overtime can lead to burnout, decreased job satisfaction, and higher turnover rates, ultimately affecting business performance. Employees who feel overworked and undervalued may disengage or seek opportunities elsewhere, increasing recruitment and training costs.
Additionally, treating overtime as the norm can contribute to an unhealthy work culture, diminish overall wellbeing, and harm the company’s reputation.
Why is there a contradiction with businesses supporting the ‘right to switch off’, but still expecting overtime?
The contradiction between businesses supporting the ‘right to switch off’ while still expecting overtime reflects a deeper challenge of balancing operational needs with employee wellbeing. On the one hand, companies acknowledge the importance of maintaining boundaries to protect their employees’ mental health and work-life balance. However, in practice, many still promote a culture where long hours are the norm, especially in highly competitive industries.
This culture often stems from a belief that greater time investment directly equates to higher productivity and business success. As a result, employees may feel compelled to work beyond their contracted hours, regardless of their wellbeing, to meet expectations or to secure career progression.
This situation highlights a gap between policy support and the realities employees face on the ground. It suggests that while businesses may endorse initiatives like the ‘right to switch off’ on paper, these policies are not always effectively enforced or integrated into daily operations, raising questions about their true commitment to employee welfare.
What should businesses do moving forward?
Businesses should establish clearer boundaries around working hours and compensation for overtime. By implementing structured overtime policies and promoting a results-driven work culture, businesses can avoid the negative impacts of long hours while still maintaining productivity.
This approach focuses on the quality of work rather than the quantity of time worked, ensuring that employees remain engaged and efficient without the expectation of excessive overtime. Encouraging efficient workload management is also essential, enabling employees to complete tasks within reasonable hours, without overburdening them.
Additionally, promoting open communication between employers and employees about expectations, work-life balance, and overall wellbeing is crucial to creating a healthier, more sustainable workplace.
Employees should feel comfortable discussing their needs and concerns, while employers should demonstrate genuine support by being proactive in addressing workload issues and ensuring that employees are not pressured into working beyond their capacity.
If companies genuinely support the ‘right to switch off’, they must align their policies and practices accordingly, in line with legal requirements. This means ensuring that overtime is both voluntary and compensated fairly, without creating an environment where employees feel obligated to work excessive hours.
By making these changes, businesses can cultivate a positive workplace culture that promotes both productivity and employee wellbeing, ultimately benefiting both the organisation and its staff.
For more information about this article or any other aspect of people services reimagined, download our App for Apple or Android, and contact your integrated HR, employment law and health & safety team at AfterAthena today. For new enquiries, book your free consultation with a qualified expert to get started.

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