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Amendment of the Labour Code

Employment, labour law, Medium-sized companies, News, Start-ups / / , , ,

In case of executive employees the parties may deviate from the provisions of the Labour Code, except some provisions where the Labour Code expressly prohibits deviation. A new provision is that the employment contract of the executive employee shall not deviate from the provisions of § 128 of the Labour Code, meaning that the executive employee shall also be entitled to an unpaid leave until the child’s 3rd birthday for the purpose of childcare.

In case of pregnancy or human reproduction process, if the employee informs the employer on the above facts only after the termination notice has been handed over, the employer may unilaterally and without the employee’s consent decide to, but is not obliged to withdraw the termination notice within 15 days after the employee informed the employer on her condition.

§ 297 of the Labour Code has been replaced by new provisions. Pursuant to that, in case a foreign employee carries out work in Hungary in frame of cross-border provision of services, if the Hungarian party (receiver of the services) knows, or has reasonable grounds to know that the foreign employer has failed to comply with its obligation to pay wage and contributions after the employee, the Hungarian party will be jointly and severally liable with the foreign employer. It has also to be noted, that the parties may not vary from this provision in their contract.

As a general rule of the Labour Code a daily rest period of at least 11 hours shall be granted to the employees. The Labour Code contains several exceptions to this rule when a daily rest period of at least 8 hours is sufficient. From 2017 standby work will not be an exception any more, thus, 11 hours rest period has to be granted to these employees instead of the 8 hours presently stipulated by law.


Amendment of the Personal income tax act

Medium-sized companies, Employment, labour law, Start-ups /

As of 2017 the “cafeteria system” will be transformed, according to which the scope of the categories of cafeteria benefits (“cafeteria”) and certain benefits which are not considered as cafeteria (“certain benefits”), will change. In addition to this from 2017 the employer may also grant a maximum amount of net HUF 100.000,- in cash to the employee per year as part of the cafeteria with the reduced tax rate.

The amount of the reimbursement of the costs of travelling to work is partly tax-free. Currently the tax-free amount is HUF 9/km. In the future an amount of HUF 15/km will be tax-free.

The definition of “posting” has also been clarified. From August of 2016, posting shall mean any official or business travel ordered by the employer, not including the travel to work and the travel between the residence or place of stay of the employee and the seat or establishment of the employer.

 

Amendment of the Civil Code – managing directors

Company groups, Corporate law, Employment, labour law, Medium-sized companies, News, Start-ups / / , , , ,

Until now, the company and the managing director were jointly and severally liable towards third persons for non-contractual damages caused by the managing director in his executive capacity. Pursuant to the new provisions, only then will the managing director be jointly and severally liable with the company against third persons, if he has caused the damages wilfully in his capacity as managing director.

Furthermore, the amendment clarifies that the managing director’s liability for wilfully caused damage extends not only to non-contractual damages but also to contractual damages (until now contractual damages could only be claimed from the company, and not from the managing director).

 

The new EU General Data Protection Regulation has been approved

Company groups, Data protection, Medium-sized companies, News, Start-ups / / , ,

After long years of negotiations, on 14 April 2016 the EU Parliament approved the general data protection regulation (“Regulation”), which – compared to the current rules – means changes both for private persons and companies.

The Regulation shall replace the current EU Directive, being implemented by the member states in certain cases quite different ways, and a new, consolidated regime shall be directly implemented by the member states.

The Regulation will enter into force after two years from its approval, however, due to the significant changes included therein, it is advisable for companies to start reviewing their internal rules and prepare for their potential amendments. The infringement of the new rules may be subject to a fine of up to 20.000.000 EUR, or in case of an undertaking, up to 4 % of the total worldwide annual turnover of the preceding financial year (whichever is higher).

Should you have any questions regarding the above, please feel free to contact us.
Dr. Marianna Csabai
H-1126 Budapest, Tartsay Vilmos u. 3.
Tel: + 36 1 488 7008
Fax: + 36 1 488 7009
E-mail:

 

We are ranked in the Chambers EUROPE guide

Company groups, Employment, labour law, Medium-sized companies, News, Start-ups / / , ,

The prestigious Chambers and Partners also ranked CLVPartners in the Chambers EUROPE guide in Employment and in the Life Science areas.

Chambers wrote about our CLVPartners based on the clients’ opinion that “the team is known for growing strength in advising international and domestic clients, in sectors such as pharmaceuticals, retail, entertainment, on cross-border TUPE transactions, employment restructuring and redundancy cases. Boasts expertise in collective bargaining agreements, data privacy issues and negotiating with works councils and trade unions.”

The full results available here: http://www.chambersandpartners.com/108/23/editorial/7/1#22609124_editorial

25 April 2016

 

Should you have any questions regarding the above, please feel free to contact us.
Dr. Marianna Csabai
H-1126 Budapest, Tartsay Vilmos u. 3.
Tel: + 36 1 488 7008
Fax: + 36 1 488 7009
E-mail:

 

Higher ranking for our law firm on Legal 500

Company groups, Competition law and consumer protection, Corporate law, Medium-sized companies, News, Start-ups / / , , , , ,

The Legal 500 research team has ranked higher CLVPartners Hungary in the EMEA 2016 directory than in the previous years in Employment and Commercial, Corporate M&A practice areas. The results are based on appreciation of the Firm’s profile, complexity, the excellent quality of works undertaken and the new hires and growth of the practice groups.

Please click here and check the Legal 500 website for further information.

13 April 2016

 

Changes in the enviromental taxes

Company groups, Medium-sized companies, News, Start-ups, Trade affairs / /

The amendments of the Act No LXXXV. of 2011 on the environmental product tax. The regulation of the environmental product tax has been amended with effect from 2016. In this newsletter we would like to draw the attention to the main changes as follows:

1. Payment obligation of the environmental product tax:
a) Inventory purchase: According to the latest amendments to the act on the environmental product tax, the payment of the environmental product tax is mandatory not only in case of placing on the market or using for own purpose such products, but also in case of purchasing them for inventory, if the obliged person chooses the date of the purchasing for inventory as the date when his payment obligation arises, and he notifies the tax authority within 15 calendar days from the beginning of the activity or in case of continuous function until 31 of January of the current year, about his choice.

b) Packaging waste: The range of the obliged persons has also been extended. Thus, the person who puts the packaging material which has been produced abroad on the Hungarian market at the first time, and the first inland holder of the packaging waste formed from the unwrapped packaging, will be also obliged to pay the environmental product tax. The latter provision will be notable especially for logistic centres.

c) So-called triangle transactions: In accordance with the amendment, an obligation for paying environmental product tax does not arise in case of selling an environmental product to an inland purchaser, if after that the product will be delivered or dispatched abroad. The condition of this was previously that the seller himself had to deliver or dispatch the product.

2. Default surcharge:
The default surcharge has been implemented in the act as a new provision, which has to be calculated on the basis of the provisions of the act on the taxation in case of late payment or incomplete payment of the environmental product tax. Also, in case of undue use of budget supports a default surcharge has to be paid after the amount and period defined in the act.

3. Definitions:
The amendments affected the definitions of the act as well. Definitions such as packaging, commercial packaging, commercial packaging material, flat rate of product tax (among others) have been supplemented. Further, the range of the definitions has also been extended with the terms element of the packaging, component of the packaging, part of the packaging, packaging waste, building product,  motor vehicle, craft products, crafting activity, large industrial tool, deficit of the product tax, margin of the product tax, product tax debt, tariff heading.

4. Others:
Further to the above, the detailed rules regarding the flat rate of the product tax, the measure of the efficiency of waste management, product tax recovery and the product tax penalty have been clarified by the latest amendment.

Should you have any further questions in relation to the above, please feel free to contact us:

Dr. Marianna CSABAI and Dr. Réka SÜTŐ
H-1126 Budapest, Tartsay Vilmos u. 3.
Tel: + 36 1 488 7008
Fax: + 36 1 488 7009
E-mail:
 

 

News on adendment of information act with the effect form 1 October, 2015

Company groups, Data protection, Medium-sized companies, News, Start-ups / / , , , , , ,

The act CXII of 2011 on information self-determination and freedom of information („Information Act”) has been amended with the effect of 1 October, 2015.

The amendments provide new possibilities regarding the forwarding of personal data to third countries as it is possible for the datacontroller to provide adequate level of protection to forward the data to third countries with the preparation and application of binding corporate rules („BCR”). It is a significant change also in the light of the recent EU Court decision on the invalidity of the Safe Harbour agreement.

Moreover to the significant amendments above the provisions of Information Act regarding the rights of affected people are amended as well and the amount of fine give by NAIH is also amended as it can be twenty million forints at the highest (instead of the prior ten million forints).
 

Should you have any questions regarding the above, please feel free to contact us.
 
Dr. Marianna Csabai
H-1126 Budapest, Tartsay Vilmos u. 3.
Tel: + 36 1 488 7008
Fax: + 36 1 488 7009
E-mail:

News on the amendments of Act I of 2012 on the Labour Code

Employment, labour law, Medium-sized companies, News, Start-ups / / , , , , ,

According to the working paper available at the Government’s website, Act I of 2012 on the Labour Code (hereinafter referred to as the “Labour Code”) and other labour-related regulations – such as the Act III of 1952 on Civil Procedure, Act XCIII of 1993 on Labour Safety and Act LXXV of 1996 on Labour Inspection – are expected to be amended with effect from 1 January 2016. The planned amendments affect e.g. the regulations regarding the working place, termination and severance payments as well.

We will continuously inform you about the abovementioned amendments of the Labour Code if the single bill will become available.
 

Should you have any questions regarding the above, please feel free to contact us.
 
Dr. Marianna Csabai
H-1126 Budapest, Tartsay Vilmos u. 3.
Tel: + 36 1 488 7008
Fax: + 36 1 488 7009
E-mail:

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