The changes do not apply to Good Friday, for which trading restrictions will remain, and will apply across the entire district.
Easter Sunday is on April 16 this year.
Rotorua Chamber of Commerce interim chief executive Allison Lawton said a survey of members saw 89 per cent surveyed in support of the policy.
"In the survey, concerns for workers and religious beliefs were the overriding theme for those who opposed the Easter Sunday trading and these concerns were also raised for those members who supported the policy.
"It is important business owners consider their staff during this time and develop fair rosters to enable staff to get appropriate, fair and equitable time off during the Easter trading period."
However, Ms Lawton said it was a fantastic move for Rotorua and the tourism sector had been lobbying on the issue for years.
"Having shops open during this time ensures visitors spend more time in Rotorua rather than in competing towns like Taupo and Tauranga, thereby spending more money in Rotorua and creating more wealth for everyone."
First Union communications and media officer Morgan Godfery said the union knew from experience "a few words in a statute aren't enough to protect people from coercion".
"We're putting local business on notice.
"If any of our members are coerced into working Easter Sunday we'll take a claim.
"People working in retail are only guaranteed three and a half days off each year and we think that's worth protecting.
"If people working in retail prefer to spend Easter Sunday with their family and friends they should get to. They shouldn't be forced into working."
Watch the full council meeting here.