Businesses prepare for upcoming Christmas Day trading rules

Trading rules come despite criticism that they are 'outdated'

Businesses prepare for upcoming Christmas Day trading rules

Businesses across New Zealand are bracing for another round of Christmas Day trading restrictions, which many are now describing as outdated and no longer fit for purpose in 2025.

New Zealand's Shop Trading Hours Act 1990 mandates almost all stores in New Zealand to close on Christmas Day, Good Friday, Easter Sunday, and until 1pm on ANZAC Day.

Shops that are only allowed to open include dairies, petrol stations, pharmacies, restaurants or cafés, hairdressers, and barbers. 

Some farmers and crafts markets may also be allowed to trade for as long as they meet certain conditions, according to Employment New Zealand.

But these trading restrictions have long been met with pushback from businesses, particularly retailers, who are calling the rules outdated.

"Restrictions on shop trading hours are commercially inequitable, inconsistent, outdated, and not justified," Retail NZ said in a position statement earlier this year.

The association was previously calling for updated regulations to allow retailers to determine if they could open on restricted trading days

"The law is even less logical when we consider that consumers are able to shop online without restrictions on any day of the year at any time," it said on its submission to Parliament.

Restricted trading days

Jeanie Borsboom, Labour Inspectorate Head of Compliance and Enforcement, warned that employers will be committing an offence if they open and trade on restricted shop trading days.

But employers who are allowed to operate on these days are still covered by regulations, particularly on employees' rights.

Under the rules, an employee can only be required to work a public holiday if:

  • It is clearly stated in their employment agreement
  • The public holiday falls on a day they would normally work

On top of that, if they do work, employers must:

  • Pay at least time-and-a-half for hours worked
  • Provide an alternative paid day off if the public holiday is an otherwise working day

If an employee does not work but it is a usual workday, they are still entitled to their normal daily pay, according to Employment NZ.

"It is important for business owners and their staff to understand the regulations around restricted trading days like Christmas Day," Borsboom said.  

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