A deal has been struck over paid breaks for bus drivers that will avoid the previously anticipated enormous disruption of public transport, but not all are convinced it will be so smooth.

Employment Relations Act reforms coming into effect on Monday entitle all bus drivers to rest and meal breaks.

It had been predicted that thousands of bus services a day would have been cancelled, but bus companies, unions, regional councils and the Government have reached a temporary agreement "to achieve the smoothest possible transition" in the first year after changes.

Under the Act bus drivers will become entitled to paid 10-minute rest breaks in the middle of each work period. But a new regulation will temporarily override part of that entitlement.

Transport Minister Phil Twyford said today the Cabinet had agreed to a new land transport rule that aims to avert thousands of bus services being cancelled and give bus drivers the rest breaks they need to keep passengers safe.

Twyford's office said in a statement: "The changes to the Employment Relations Act require employers and employees to reach agreement on rest and meal breaks together. If agreement can't be reached rest breaks are to be taken in the middle of a work period."

He said the new rule gave flexibility to bus operators when scheduling rest breaks for drivers.

"This regulatory intervention is intended only as an interim solution while operators adjust their schedules to implement the changes."

First Union transport secretary Jared Abbott welcomed the memorandum of understanding - the deal aimed at implementing the changes for bus drivers provided for by the Act and the new land transport rule.

"It's the best that we could do that wasn't going to disadvantage drivers and wasn't going to severely disrupt the public."

He said that without the new rule 25 to 30 per cent of bus services would have been cancelled.

However, Bus and Coach Association CEO Barry Kidd told Mike Yardley some disruption is inevitable.

"Some services will run late in order to accommodate rest breaks in drivers. I think Auckland Transport is talking 200 daily services, we don't have a figure for Wellington or any other centre at this stage."

He says we will still see significantly less disruptions than originally reported. 

Auckland Transport says it's not known how many services will be impacted, but says it'll be mainly off-peak.

Kidd says that the drivers are enabling this flexibility around the breaks. 

"That's appreciated by everyone as it's minimising the disruption." 

He says that the 12 month period will allow more time to acquire more buses and train more drivers.