Councils will be able to decide whether retailers can open on Easter Sunday.

LISTEN ABOVE: Minister Michael Woodhouse speaks to Larry Williams about the proposals.

"The current rules around shop trading over the Easter period are complex and relatively arbitrary. The law allows certain shops selling specific items to remain open, while others must close their doors," Workplace Relations and Safety Minister Michael Woodhouse said.

"It also includes several historical exemptions which allow shops in areas such as Queenstown and Taupo to open on Easter Sunday, while those in Wanaka and Rotorua cannot."

Mr Woodhouse said that meant some businesses and regions had an unfair advantage, and there was demand from people across the country to allow for shop trading on Easter Sunday.

"The proposed law change will enable communities to choose whether or not to allow trading. It will mean regions, especially tourist areas, can respond where there is strong demand for Easter Sunday trading."

Mr Woodhouse said the law change would also give workers the opportunity to decline to work, with no reason necessary.

The fact that only changes to Easter Sunday would be proposed was because there was added religious and cultural significance attached to Good Friday, Anzac Day and Christmas, Mr Woodhouse said.

The Bill is expected to be introduced in the coming weeks, and the effects of the law change would be seen when councils make bylaws to allow for trading, likely from Easter 2017.