On Tuesday, representatives in Hungary passed a controversial Sunday shopping ban affecting large-sized retailers, initiated by Christian Democrats KDNP, the junior partner in the governing coalition and later endorsed by Prime Minister Viktor Orbán. No impact studies have been pubished on the new policy measure, which will likely affect several hundred thousand people in one way or other; economic rationale for the move is scarce.
1. In the final version of the new law, the title has been changed as well. Instead of legislation "On retail business hours", MPs passed a vote on a much more harsh-sounding bill "On the prohibition of Sunday work in the retail sector".
2. The scope of the law covers retail activity.
3. Stores will have to keep closed on Sundays, except those with retail space not exceeding 200 square meters, provided that Sunday staff is a business owner with a stake of at least 20% in the store or a family member.
4. Other exceptions to the rule: tobacconists; pharmacies; retail units at airports, train stations, prisons or hospitals; farmers' markets; petrol stations; stores on military precincts.
5. Business hours will be limited to 6 a.m. to 10 p.m., another move that will hurt round-the-clock big box stores.
6. Further, all retail units are allowed to keep open on the four Sundays preceding Christmas, from 6 a.m. to 10 p.m., and one more additional Sunday of the year as chosen by the owner.
7. Retail units are allowed to keep open from 6 a.m. to noon on 24th and 31st December.
8. Bakeries are allowed to keep open from 5 a.m. to noon on Sundays and other days of rest, and from 5 a.m. to 10 p.m. on other days.
9. The law authorises the government to regulate retail opening times individually depending on the specific local environment (tourism, shopping habits, number of employees, local residents) and lay down those rules in local regulations.
10. The new law is coming into effect on 15th March.
+1: No impact studies are known as the government has not released any such information. It is worth recalling the previous debate of a bill concerning free Sundays, in 2010/2011. At that time, Fidesz mentioned an unpublished Economy Ministry impact study as the rationale for not endorsing the proposal.
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