Rounding and overtime on construction sites
Updated
New Zealand law sets no general overtime rate: whether overtime is paid, and at what rate, comes from the employment agreement. The law does require that every hour actually worked is paid at no less than the minimum wage and that records reflect the time actually worked. Rounding and early or late time should be written down and applied consistently.
Rounding
Rounding to 15 or 30 minutes is common practice, provided the rule is neutral and does not systematically favour the employer. Arriving at 7:52 counting as 8:00 is matched by finishing at 16:07 counting as 16:00; over time the effect balances. Rounding only downwards amounts to underpayment.
Early arrivals and late finishes
Arriving before the start time, when the employer has not asked for early work, normally counts from the agreed start. Time on site after the finish counts when the employee is working at the employer's request; the rule should be set and communicated in advance.
Overtime
The trigger (hours per day or per week) and the rate belong in the employment agreement. Without one, hours worked are paid at the ordinary rate but must still be recorded.
Minimum wage check
Total pay for the period divided by hours actually worked must be at or above the minimum wage for every hour. Unpaid meal breaks are not part of the hours.
In Hatplan
- Rounding (none / 15 / 30 minutes) is set once per company and applied to every worker
- Early arrivals count from the site start time; time after the finish is ignored or paid as overtime, as the company rule says
- Presence time and paid time are shown side by side so the rule is transparent to workers
General information, not legal advice. Refer to Employment New Zealand and the legislation for the requirements that apply.