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Start keeping / go back and create a record of your tasks including exactly what you are doing for Thing1. Do your work first always - don't miss your deadlines. Have a candid conversation about your workload with your manager soon. Keep it about the tasks you have accomplished (including what you did for Thing1). You can frame it as a regular check-in. Or you can go to your manager this Friday when another request comes in, and ask for "help prioritizing." Lay out what you've done including the last minute projects you've been helping with every week. If they don't seem to catch on, Ask them point blank if they know that this person comes in late, takes long lunches, and then enlists you to do the work.
Agree with the other posters, dont bring up the late or lunch thing. That always sounds petty. I would continue to help IF you have the time. I
People are going to notice. In a team of 3 it cant keep hidden too much longer. If you stay on the good side of this person they could actually help you move ahead.
@OP Don’t get so hung up on the tardiness or long lunches. I come in late all the time but I complete all of my work. That’s actually more common than you think.
I think if you stop helping them, you won’t spend so much energy on what they are doing. Worrying about what other people are doing is not healthy.
Mind your own business.
More context. At the end of the week when my coworker inevitably fails to complete all their tasks, they often come to me asking me to finish them for them. Im already completing twice as much as they are in any given week. I've been at this company for 3 months. They've been here for 5 years. Everyone at this place is buddy buddy so I'm afraid to come off as a tattle tale, and I don't want any animosity between us since we work in a team of 3.
Lunch shouldn’t be an issue if the employee is getting their work done and other people in their department aren’t super slammed and/or obviously need help. Consistently arriving late and leaving early are definitely issues that should be addressed however, especially if other people are complaining.
Just to play devil's advocate, are you sure that this schedule wasn't something where the employee may have negotiated these terms into his contract with his manager/HR?
Is he arriving late to work and missing important meetings or deadlines? Or is he arriving "late" because he's just not first at the office?
Are the projects he doesn't finish have strict deadlines? If it was important, his boss or boss' boss would have said something by now. It's probably not that important or urgent enough for his manager to bat an eye at it.