Paid rest break calculations
- Aimee Jay
- James Barnsley
- Tessa Power (Unlicensed)
- James O'Hern (Unlicensed)
In New Zealand, piece rate workers are entitled to paid rest breaks but they can be confusing and difficult to calculate manually for contract work.
Tatou helps you to calculate paid breaks for your organisation using the calculations described below. It is important to double check that Tātou’s paid break calculations meet the needs of your organisation, industry and governance as there may be variations across the country. If this approach doesn’t suit your business, or if you have any queries, please get in touch to discuss further.
Overview
Depending on your organisation, workers are often entitled to paid rest breaks and unpaid meal breaks that:
- give them a reasonable chance during work periods to rest, refresh, and take care of personal matters; and
- are appropriate for the length of their working day with the employer.
Rest breaks can benefit workplaces by helping employees work safely and productively.
Employers often must pay for rest breaks but don’t always have to pay for minimum meal breaks.
Read more about Rest and Meal Breaks on the government website here.
Why does Tātou pay contract Paid Rest Breaks separately?
Earnings from work periods on hourly rate include paid rest break/s
Earnings from work periods on contract rate exclude paid rest break/s and often require an additional payment. This payment allows the employee to take a break without losing money from downing tools
Who does Tātou qualify for separate Paid Rest Breaks?
If an employee is earning above the minimum hourly wage on contract, they are entitled to an additional payment to cover paid rest breaks
If an employee is earning below the minimum hourly wage on contract, they are entitled to an additional payment to top up their hourly rate to the minimum and do not qualify for separate paid rest breaks as the minimum hourly rate includes these
How does Tātou calculate Paid Rest Breaks?
You can customise these entitlements for your account under → Settings → Entitlements → Paid Rest Breaks. Remember to ensure these are compliant with your local legislation.
The following table illustrates how paid rest breaks would be applied to all hours worked on contract rate. The employee would be paid the resulting quantity of 10-minute breaks at their average hourly wage on contract.
Length of employee’s contract work period | Minimum number of rest breaks employees are to be provided |
|---|---|
2.00 - 6.00 hours | 1 x 10 minute paid rest break |
6.01 - 10.00 hours | 2 x 10 minute paid rest break |
10.01 – 14 hours | 3 x 10 minute paid rest break |
14.01 to 16 hours | 4 x 10 minute paid rest break |
*Excludes unpaid breaks
Last updated in accordance with the 6th May 2019 changes to rest and meal break entitlements as set by MBIE—read more about it here.