A sweeping reform of Luxembourg's Sunday work and shop opening hours was proposed by the government Wednesday, a move that would grant small businesses more flexibility but has drawn criticism from trade unions.

On Wednesday, the Luxembourg government presented amendments to two key laws governing Sunday work and shop opening hours, a move that underscores the coalition's market-liberal stance on the issue.

The changes, which have drawn significant opposition from trade unions, would allow retail employees to work up to eight hours on Sundays and until 9pm on weekdays.

The government's proposal follows a consultation with the Council of State and early September negotiations with social partners, which were ultimately unsuccessful. Demonstrating its determination, the government has outlined how the extension of Sunday working hours – from four to eight hours – will be applied differently based on company size.

The two-tiered system for Sunday work

The amendments introduce a two-tiered system:

  • Small businesses (up to 30 employees): These firms will be permitted to unilaterally decide to implement 8-hour Sundays without requiring a collective agreement with unions. The government estimates this clause will apply to approximately 90% of retail businesses, covering about 35% of employees.
  • Larger companies (31 or more employees): For these businesses, the current requirement remains unchanged. They must negotiate a collective agreement with unions to extend Sunday hours. This affects only 5% of businesses but encompasses over 60% of the retail workforce. These larger firms retain the existing option to open for eight hours on up to six Sundays per year.

The government, with Minister of Labour Georges Mischo championing the proposal, argues the law retains a social dimension by guaranteeing social dialogue for the majority of affected workers.

If passed, the new regulations are scheduled to come into force on 1 January 2026.

Shop opening hours

The government has revised its bill on shop opening hours after the initial version was rejected by the Council of State in June.

The amended proposal extends operating hours, though less drastically than first planned. On weekdays, shops will be permitted to open from 5am to 9pm, a compromise from the originally intended 10pm closing time. The current legal framework allows operations from 6am to 8pm. Sunday hours will also be extended, shifting from the current 6am to 1pm to a new window of 5am to 7pm.

A key point of contention in the first draft involved three specific public holidays: 1 May, 25 December, and 1 January. The initial text mandated closure for most shops but created an exception for businesses like butchers, bakers, and eateries. It then allowed this closure rule to be circumvented via collective bargaining, a mechanism the Council of State found problematic.

The revised amendments address this by setting specific, authorised hours for all shops on these three holidays, from 5am to 7pm. For businesses that are normally prohibited from operating on these days, opening will still be permitted, provided a collective or inter-professional agreement is first secured.

The law is scheduled to come into force six months after its publication in the official journal.