Overtime Hours and Unpaid Labor in Spain: Trends, Policy, and Worker Impact
Across Spain, overtime hours and unpaid work have risen, with the second quarter of 2020 marking a shift when many people moved from traditional offices to home settings. The lines between professional life and private life blurred, a change reflected in the latest active population survey data. The figure for overtime hours that go unpaid reached a concerning level, highest since mid-2020 and the peak in the past five years when the COVID period is not considered. Analysts note that this practice affects roughly half a million workers nationwide, with women bearing a heavier burden than men. In response, labor authorities have introduced a specialized algorithm intended to aid inspectors, although some observers say its impact remains unproven at this stage.
Spain sees about 13 million hours of unpaid monthly work, a record not seen since the second quarter of 2020. For many workers, the pandemic forced a rapid transformation where a kitchen table operated as a desk, extending workdays that were hard to align with family responsibilities.
In a study by Consulting Straw, 61% of teleworkers report repeatedly working overtime without pay or holiday compensation. The rise in unpaid overtime coincides with persistent job vacancies and a strong labor market dynamic in Spain, where unemployment remains significant in the European Union context. Overtime and unpaid labor appear to intensify during periods of higher economic uncertainty and when hiring slows.
Unpaid overtime is linked to the structure of the labor market, often following the rhythm of economic cycles. The pattern shows more overtime in times when GDP grows and fewer hours in weaker cycles. The most intense quarters for unpaid overtime historically align with major economic shifts, including housing market fluctuations and post-crisis recoveries. The record for unpaid overtime hours dates back to mid-2008, when a single month recorded 15.7 million hours.
Experts point to a broader trend of informality in the labor market as recoveries unfold. Some employers prefer pressuring workers to extend their hours rather than hiring more staff during uncertain periods. This mindset persists despite public efforts to curb unpaid overtime, which also influence gender gaps in compensation. In recent years, governments have sought to require formal tracking of working hours to reduce unpaid overtime, but progress has been uneven.
Three years after the rule mandating time-recording came into effect, audits remain inconsistent, and many companies still lack formal time-tracking practices. Research from a human resources firm indicates that a notable portion of Spanish companies do not maintain time records, despite legal obligations. The time-tracking requirement is viewed by inspectors as a practical tool to pursue overtime fraud, yet enforcement remains resource-constrained due to limited staffing.
New governmental initiatives aim to strengthen Labor Inspection oversight. A dedicated algorithm, nicknamed MAX (More Algorithms for Less Work), was announced to help inspectors detect signs of overwork and non-payment before work begins on-site. Evaluations of MAX will rely on upcoming survey data to assess its effectiveness. Stakeholders note that details on MAX’s operation remain a work in progress, awaiting further guidance from supervisory bodies.
Gender differences persist in the incidence of unpaid overtime. Across Spain, about 880,500 workers report overtime on a regular basis, with roughly 453,000 not receiving compensation. The share of unpaid overtime among women is notably high, and in fields such as science and education, unpaid overtime can exceed 70% of total overtime hours, contributing to a disproportionate burden on female workers.
Citations: EPA data and INE records inform the analysis of unpaid overtime trends. Insights from industry researchers and labor unions help illuminate the mechanisms behind overtime non-payment and the public policy responses designed to improve compliance and-worker protections. Attribution: European Union statistical authority and national labor statistics agencies, with corroborating research from industry analysts and labor unions.