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The most important things to know about mothers and employees with young children returning to work

Employment, labour law, News / / , , , , , , , ,

Reading time: 5 minutes

The birth of a child is a significant event in a human ‘s life, which also has a major impact on the professional and work-related life of employees. Given the importance of becoming a parent, the Hungarian labour law contains numerous provisions aimed at promoting the proper development and care of children and protecting mothers and parents with young children.

According to Act I of 2012 on the Labor Code („Labour Code“), mothers are entitled to 24 consecutive weeks of maternity leave (CSED) and parents of young children (until the child reaches the age of 3) are entitled to unpaid leave (GYED, GYES) for the purpose of caring for their children.

During the care and upbringing of a child, there may come a point when the desire to return to work arises. However, it is important to note that during the parent’s absence, numerous changes may occur in the employee’s personal circumstances and in the employer’s organization, because of which the employee’s previous employment conditions may no longer be guaranteed or may no longer be appropriate. The Labor Code contains detailed rules for reconciling the differing interests of employees and employers and for protecting social objectives. In this article, we summarize the most important rules related to this topic.

General rules applicable in all cases

Announcement of return

According to the Labor Code, the employee may specify the date of his/her return, but when indicating the date, to comply with the obligation to cooperate, the employer must be given at least 30 days’ notice. Therefore, the employee must give notice of his/her intention to end unpaid leave taken for the purpose of caring for a child at least 30 days before the end of the leave.

Wage adjustment

Given the wage increases that occur during the employee’s absence, a situation may arise where the wages of the employee with young children are less than their colleagues. This situation clearly violates the requirement of equal treatment, thus the Labor Code stipulates that the employer is obliged to make an offer to adjust the wage after the absence has ended. For the purposes of making an offer, the average annual wage increase applied by the employer to colleagues working in the same position as the employee must be considered. If there are no other employees in the same position, then the average annual wage increase implemented by the employer on a company level shall be the reference point.

Granting leave

The entire duration of maternity leave and the first six months of unpaid leave taken for the purpose of caring a child are considered leave-entitling periods, meaning that the employee’s leave entitlement accrues even during his/her absence. As a general rule, the employer must grant this accumulated leave within 60 days of the employee’s return (typically before the employee actually returns to work).

Changes in terms and conditions of employment

Generally, the employer is obliged to employ the employee upon his/her return in accordance with the original conditions (e.g., working hours, job description, place of work). However, it is easy to see that during the employee’s absence, changes may occur on both sides (e.g., the employee relocates, termination of his/her position), which would make employment (under the same conditions) no longer possible or would cause the parties to temporarily deviate from it (e.g., part-time employment). The parties may, of course, amend any terms and conditions or terminate the employment relationship by mutual agreement, but in certain cases and under certain conditions, they may also be entitled to do so unilaterally.

Modification of employment conditions upon the request of the employee with young children

In order to facilitate the appropriate development of young children, the Labor Code provides employees with young children with the opportunity to request changes to their employment conditions (e.g., place of work, remote work, part-time work) under certain conditions.

In the context of changes to employment conditions, we would like to point out that employers are often subject to a prior notification obligation, i.e. they must inform employees about the availability of part-time and remote working positions.

In certain cases, employers are obliged to comply with requests from employees with young children without consideration, while in other cases, the feasibility of the request and its acceptability by the employer may be examined.

The employer is obliged to respond to requests that are subject to employee justification or employer discretion within 15 days. If the employer fails to do so or rejects the request without justification, the employee has the right to challenge the decision before a court, so it is advisable for employers to prepare in advance for the return and employment of parents with young children and to establish appropriate procedures.

Special rules relating to termination of employment

Employees are forbidden to be dismissed during pregnancy, maternity leave, paternity leave, parental leave and leave of absence taken without pay for caring for a child. After the employee’s return, this absolute prohibition no longer applies, but until the child reaches the age of three, the employer has limited rights to terminate the employee’s employment in certain cases. Termination on grounds related to the employee’s abilities or the employer’s operations (e.g., cessation of the employee’s position) may only be given if there is no other suitable vacant position or if the employee has rejected an offer of the position. It is also important to note that the fact that the employer filled the employee’s position by a way of hiring another employee in the meantime does not in itself constitute a legal basis for termination of employment, as the employee has the right to be employed in their original position. Termination based on conduct may only be given if it meets the requirements for termination without notice.

Summary

Overall, it can be stated that the Labour Code contains numerous restrictions regarding the return to work and employment of mothers/parents with young children in order to take into account the individual circumstances of employees. However, it is important to emphasize that the interests of employees are not exclusively protected, as the legislator considers the economic aspects of employers in many respects.

Photo source: pexels.com, Yan Krukau

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General obligations of the employer in the event of a change in the employee’s health

Employment, labour law, News / / , , , , , , , , ,

Reading time: 5 minutes

During the course of employment, situations may arise where an employee’s health condition changes, either temporarily or permanently. This may result, for instance, from an accident-related injury, post-surgery rehabilitation, treatment of a chronic illness, or even partial loss of working capacity. In such circumstances, a key question for the employer is to what extent and in what manner they are required to adapt work organisation and working conditions to the employee’s altered health status.

In this respect, the employer bears not only legal but also social responsibility — the way an employer handles changes in employees’ health conditions is a key indicator of responsible employment. However, it is important to define the limits of the employer’s duty to adjust and take appropriate measures, as this obligation may vary depending on the specific case and circumstances (e.g. the employer’s available resources). The following article provides guidance on situations where the employee is still considered fit for work but experiences a change in their state of health.

General Obligations

Pursuant to Act I of 2012 on the Labour Code (hereinafter: the “Labour Code”) and occupational safety regulations, employees may only be employed for work that, in view of their physical constitution, development, and state of health, do not have adverse consequences for them. Furthermore, it is the employer’s fundamental responsibility to ensure that work is performed under safe and healthy conditions that do not pose a risk to the employee’s well-being. This obligation applies throughout the entire duration of the employment relationship and includes continuous assessment. Accordingly, if an employee’s health condition changes over time, the employer is required to take appropriate measures in response to the situation.

In practice, this may involve temporary adjustments (e.g. part-time work, reduction of physical strain) or minor organisational changes (e.g. reassignment of certain tasks, review of working logistics).

Limits of the employer’s obligations – the principle of reasonableness

It is important to emphasise that the employer’s obligation to take measures is not unlimited. According to Section 6 of the Labour Code, which sets out the “principle of reasonableness”, the employer is only required to modify working conditions or reorganise work to the extent that is realistically and fairly expected under the given circumstances — that is, as long as doing so does not impose a disproportionate economic or organisational burden on the employer. The assessment of this obligation must always be based on the specific circumstances of the individual case, considering the employer’s economic and organisational capacity, as well as the nature of the employee’s health-related limitations.

In general, the employer is not required to:

create a new position,

hire additional staff, or

make significant investments

solely to ensure the continued employment of the affected employee.

The case law of the Curia (Supreme Court of Hungary) also confirms that the extent of the employer’s obligation must always be determined by the specific circumstances of the case. For example, if an office employee temporarily cannot type due to a broken hand, the employer is obliged to provide lighter or alternative administrative tasks during recovery but is not required to establish a new position.

The situation differs, however, when a professional driver is subject to a medical opinion imposing (not merely temporary) restrictions on their ability to perform driving duties. In such a case, even by modifying the working conditions, the employee would not be able to perform the essential functions of their role. Considering the principle of reasonableness — as a limitation on the employer’s duty to adapt and take measures — the continued employment of the worker would impose a disproportionate burden on the employer. Therefore, with appropriate justification, the termination of the employment relationship would be considered lawful.

Summary

The employer is required to adjust working conditions to the employee’s (changed) state of health where this is necessary to ensure safe and healthy working conditions. However, this obligation is not unlimited: under the principle of reasonableness set out in the Labour Code, the employer is only required to take measures to the extent that they do not impose a disproportionate burden. Accordingly, the extent of adaptation expected from the employer must always be assessed on a case-by-case basis, considering the specific circumstances and available resources, in order to determine what level of adjustment is reasonable to enable the continued employment of the affected worker. For a lawful and fair procedure, it is advisable to involve the employee, the occupational health physician, and—where necessary—the occupational safety specialist in the decision-making process, and to maintain transparent documentation of the measures taken. This approach ensures not only the protection of the employee’s interests but also the employer’s lawful and compliant operation.

Image source: pexels.com, Karolina Grabowska

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The scope of employer control in assessing liability for damages

Employment, labour law, News / / ,

Reading time: 5 minutes

The concept of employer control is one of the most important aspects of labor law, determining the employer’s liability for damages caused to the employee. Strict rules apply to employer liability under Act I of 2012 on the Labor Code (hereinafter: “ Labour Code“), as the employer is objectively liable for any damage caused to the employee in connection with the employment relationship. The employer may be exempt from liability in two cases. The first is if it can prove that the damage was caused by circumstances beyond its control, which it could not have foreseen and could not have been expected to prevent or mitigate. Another possibility for exemption for the employer is if it can prove that the damage was caused solely by the unavoidable behaviour of the aggrieved party.

This article examines the scope of control relevant to the first exemption option, the definition of which is key to determining liability.

The definition of the scope of control

Liability for damages means that the employer is liable for damage caused to the employee in connection with the employment relationship. Several factors must be taken into account when assessing liability, such as:

  • the employee’s conduct,
  • the working environment provided by the employer, or
  • the working methods used.

In order for the employer to be exempt from liability for damages, it is necessary to examine the circumstances of the damage in order to determine whether they fall within the employer’s scope of control.

The difficulty lies in the fact that the concept of control is not defined in the Labor Code. According to the developed judicial practices, the scope of control refers to the extent to which the company  is able to control and direct the activities of its workers.. This includes all circumstances over which the company has actual influence, and which it must create in order to ensure that the employees have the necessary working conditions and a safe working environment. The scope of control therefore includes all objective circumstances that the employer had any possibility of influencing, including working methods that could lead to an accident.

The scope of control generally includes the following:

  • the place of work,
  • working hours,
  • work equipment
  • working methods,
  • performance of tasks, and
  • related personal conduct,
  • work organization.

The scope of control is not necessarily limited to the company’s registered office or premises, as depending on the circumstances of the specific case, the employer may also be entitled and obliged to create safe working conditions at other locations (e.g. at a construction site managed by the employer or in the case of international transport). so, in certain cases, transport conditions may also fall within the scope of the control.

The importance of the scope of control in relation to accidents

If an employee suffers an accident, it must be classified from both an occupational safety and social security perspective.

  • An accident is considered a work accident if it occurs during or in connection with organized work. For example, if the incident occurs while the employee is traveling, transporting materials, moving materials, cleaning, using organized workplace catering, occupational health services, or other services provided by the employer in connection with their work.
  • Accident at work is a social security category that classifies accidents in terms of entitlement to benefits. An accident at work is an accident that occurs to an employee during or in connection with work performed in the course of their employment, so work accidents generally fall into this category. However, an ccidents that happen to employees while traveling to or from work or their place of residence (accommodation) are also classified as accident at work, but these are not work accidents, but so-called accidents on the journey.

In the event of a work accident, the employer may be liable for damages, in which case the employer is obliged to compensate either the employee for the entire damage or, if the employee contributed to the accident, for part of the damage. The employer is obliged to investigate the work accident; in doing so, it must uncover the circumstances of the accident, such as the condition of the machines and equipment, the availability of protective equipment, and knowledge of and compliance with the rules of work, which are generally considered to fall within the employer’s scope of control. Thus, all circumstances that the employer has control over and that lead to a work accident constitute grounds for employer liability.

Judicial practice

The developed judicial practice is fundamentally very strict and considers all facts and circumstances that the employer had the opportunity to influence to be within the employer’s scope of control.

An extreme individual decision also evaluates the employer’s expectations and instructions in this context:

According to the findings, the truck driver was transporting raw leather and, following his employer’s instructions, spent the night in his truck at a rest stop, where he fell seriously ill after being bitten by an insect. The accident occurred during the employee’s rest period, over which the employer has no control. The court nevertheless ruled that the circumstance causing the damage, i.e., the insect bite, fell within the employer’s scope of control, since the employer had expressly required the vehicle and cargo to be guarded, thereby also giving instructions on how to spend the rest period. The employee thus acted in the employer’s interest even during his rest period. The Supreme Court found that the employer had influence over the conditions, but failed to avoid the circumstances within its control, as a result of which the employee suffered damage, and therefore ruled that the employer was liable for damages.

Summary

The employers’ liability rules established by the Labor Code set strict conditions for exemption in the event of damage, which is why it is extremely important for employers to ensure safe working conditions, take appropriate health and safety measures, periodically reviewing these measures, and, in the event of a work accident, applying corrective mechanisms to prevent further similar accidents. When an accident occurs, it is advisable to carefully document the circumstances, as these will form the basis for the court’s assessment.

Image source: pexels.com, Mikael Blomkvist

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The employer’s opportunities to enforce financial claims against the employee

Employment, labour law, News / / , , ,

During the employment relationship, the payment of remuneration is one of the fundamental obligations of the employer, which also constitutes the basis of the employee’s livelihood. Given its important role, Act I of 2012 on the Labour Code (“Labour Code“) contains detailed rules on the types, amounts, methods of payment, and protection of wages. We often encounter the question of how an employer can enforce its claim against an employee, for example in the event of damages or other claims arising from the employment relationship. In this article, we summarize the simpler options for enforcing the financial claims of employers outside of litigation.

Deduction from wages

In view of the rules on the protection of wages, the employer may only apply deductions from the employee’s wages within the legal framework and under certain conditions. While the provisions governing the categories and conditions of deductions are contained in the Labor Code, the limits on the amount of deductions are set out in Act LIII of 1994 on Judicial Enforcement („Vht.”).

Conditions for deduction:

    • As a general rule, employers are only entitled to deduct wages from employees on the basis of law or an enforceable order. In other words, the employer is obliged to deduct any taxes imposed on wages or claims deemed enforceable by a court. However, it is important to emphasize that in such cases, the employer is typically not pursuing its own interests.
    • With the employee’s consent, the employer is also entitled to deduct the employee’s wages. However, the consent must be explicit, and the deduction may only be applied to wages exceeding to the deduction-free part of the wages.
    • The employer shall also be entitled to deduct its claim from the wages if it arises from advance payment.

Limits on deductions in terms of their amount:

The Vht. stipulates that only the employee’s net salary may be used for enforcement. As a general rule, 33 percent of the debtor employee’s net salary may be subject to enforcement, but in exceptional cases, the deduction may reach up to 50 percent of the net salary.

We refer to the fact that with the entry into force of the relevant provisions of Act LXXIV of 2024 on the establishment of Hungary’s central budget for 2025 (“Amendment“), the exemption rules on income deduction were amended as of 1 July 2025:

    • Pursuant to the Amendment, the family tax allowance under Act CXVII of 1995 on personal income tax (“Szjatv.”) is exempt from the deduction. This means that when determining the basis for deduction, the amount arising from the debtor’s net salary due to the applicable family tax and contribution allowances must be disregarded. However, the exemption shall only apply to enforcement proceedings initiated on or after 1 July 2025.
    • A further change relating to deductions is that the portion of net income exempt from deduction has been increased from HUF 60,000 to 60% of the net minimum wage. This sum is currently HUF 116,029 which must be paid to the debtor employee in all cases.
    • The rule remains unchanged that if the amount payable to the employee after the deduction exceeds HUF 200,000, the amount exceeding HUF 200,000 may be enforced without restriction.

The payment notice as an alternative method of enforcing the employer’s claim:

As a general rule, the employer can only enforce its own claims arising from the employment relationship against the employee through court proceedings or payment orders. However, the Labour Code also provides for a special option for enforcing claims, namely payment notice. The biggest advantage of a payment notice is that it is much faster and simpler than litigation or payment order proceedings.

The employer may enforce claims against the employee and related to the employment relationship that do not exceed three times the minimum wage (currently HUF 872,400) by means of a written payment notice. However, it is important to note that in the case of claims arising from the same legal basis, the employer may only issue one payment notice. Thus, the employer has no opportunity to enforce its claim exceeding HUF 872,400 by issuing several different payment notices. In such cases, the employer may enforce its claim in accordance with the general rules, i.e. in court or through a payment order procedure.

The employer must always justify the payment notice. Therefore, a payment notice complies with the law if it is clear to the employee why it was issued. In addition to written form and the obligation to provide justification, notification on legal remedies is an essential element of payment notices.

This is because if the employee does not appeal against the payment notice within 30 days, the court will issue an enforcement order and it will become directly enforceable. It also means that, in the absence of notification on legal remedies, the payment notice cannot be accompanied with an enforcement clause.

Summary

Overall, we can conclude that the employer may only enforce its own claims arising from the employment relationship directly against the employee’s wages if the conditions specified in the law are fulfilled.

Given that the employee’s salary is the basis of his livelihood, in the event of deductions, the criteria set out in the Labor Code and the restrictions on the amount of deductions set out in the Vht. must always be taken into account.

A payment notice can be a quick and effective alternative to enforcing a claim, but it can only be issued up to a certain amount and under certain conditions.

If you have any questions regarding the above, please do not hesitate to contact us.

Image source: cottonbro studio, pexels.com

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Information on the changes to the Labour Code in 2023

Employment, labour law, News / / , , ,

Dear Clients,

On 21 December 2022, Act LXXIV of 2022 amending certain employment-related laws was published, which includes, among other things, the amendment of Act I of 2012 on the Hungarian Labour Code (“Labour Code“) effective as of 1 January 2023.

The comprehensive revision is mainly due to the correct transposition of two EU directives, but a number of other provisions changes as well. Among the large number of changes, we briefly highlight the most important new rules.

1.              Changes to employment documentation

1.1.         Changes to the mandatory content of employment contracts

The following will no longer be a mandatory element of the employment contract:

  •        place of work,
  •        starting date of employment, and
  •        duration of employment.

Unless otherwise provided, these are governed by the Labour Code, but if the parties wish to derogate from the main rule of law, they may do so by agreement.

According to the law,

  •        the working time starts on the day following the execution of the employment contract,
  •        the working time is indefinite,
  •        the place of work is the usual place of work for the position.

Another new novelty is that, as a main rule, wages shall be paid by bank transfer, and parties can only derogate from this main rule by mutual agreement.

In the case of fixed-term employment, if the duration is maximum 12 months, the probationary period shall be pro-rated, and after termination, no probationary period may be imposed for a second employment in the same or similar position. Employers should therefore review the standard contracts they use to ensure that they contain the right content for the future.

1.2.       The employer’s notification obligation

The notification obligation of the employer has been tightened: instead of the current 15-day deadline, the employer shall provide the necessary information in writing within 7 days from the starting date of the employment relationship, and in case of change, on the date of change.

In addition, employers will in future be obliged to provide information on their training policy and the name of the authority to which they pay employment-related taxes, currently the Hungarian Tax Authority.

1.3.       Notification before secondments abroad

The legislation states that for secondments of more than 15 days, employees shall be informed of the rules and conditions governing the remuneration applicable in the place of work, the reimbursement of travel, subsistence and accommodation expenses, and the availability of the unified national website (i.e. the OMMF) containing relevant information on the rights and obligations of the employer providing cross-border services and the employees posted.

1.4.       Certificates and declarations relating to new types of leave, exemptions

The amendment to the Labour Code contains a number of new rules regarding vacation, exemptions from work, prohibitions on dismissal, information requirements – as a result of which employers will need to assess the documentation to support entitlements – including parental leave, paternity leave, the duration of care for a relative, and the background documentation for termination without notice.

2.      Exemption from availability and work – extension of cases

The Labour Code already contains a list of cases in which the employee is exempted from his/her obligation to be available and work.

According to the amendment workers are exempted from these obligations if they are caring for a relative who needs care for serious health reasons or personal care for a person living in the same household as the worker, but for a maximum of 5 days. During the period of care, the employee is not entitled to give notice.

3.            Options for parents

3.1.       Paternity leave and parental leave

The amount of leave for fathers will be increased from next year, to a unified 10 working days. Fathers whose children are born or adopted between 2 August and 31 December 2022 will also be entitled to the amended paternity leave until the end of February 2023. For the first 5 working days of paternity leave absence fee, while the for the second 5 working days 40% of the same absence fee shall be paid .

Parental leave has been introduced, which by its very name is granted to both parents. It is granted for 44 working days up to the age of 3 of the child, provided that the employee has been employed for at least one year by the employer. The rules for taking parental leave are the same as those for paternity leave, except that it may be taken up until 30 June 2023. For the period of the parental leave 10% of the absence allowance shall be paid for the whole period.

Both leaves are granted at the employee’s request and the requested date may be postponed by the employer in exceptional cases. However, if it the leave not been granted by the date of termination, there is no cash payment, but the employee may roll over its entitlement.

It is also a common rule that during the period of leave under these entitlements, the employer shall not terminate the employment by dismissal.

3.2.      Possibility of amending employment contracts for parents with children

In addition to the current entitlement, a significant benefit is that an employee can apply until its child reaches 8 years for

  •        change of workplace,
  •        change to working hours,
  •        teleworking, or
  •        part-time employment.

The request shall be made in writing by the employee, stating the reasons, and the employer shall give written reasons for refusing the request within 15 days. The refusal of a request may be challenged in court, but the possibility of an extra-judicial hearing of these proceedings has been removed, so in practice it does not provide a real solution. However, employers are encouraged to keep transparent and accurate records of their labour needs in order to avoid disputes.

4.           Disputes

4.1.       Abuse of rights

The rules on employment law claims based on abuse of rights are amended. The new legislation sets out how the burden of proof is shared between the parties.

The burden is on the claimant (the employee) to prove the facts, circumstances and prejudice on which the claim is based, while the burden is on the decision maker (the employer) to prove that there is no causal link among the above. The significance of the change is that if the employee’s claim of abuse of rights is acknowledged by the court, the employee is entitled to request the restoration of his employment relationship by the court.

4.2.      Reasoning obligation

In exceptional cases, the employer is not obliged to give reasons for termination (e.g. in the case of termination during the probationary period). However, under the new rules, the employer is still obliged to give reasons, if the employee believes that the termination is due to one of the following reasons and requests the reasons for termination. The alleged reasons can be:

  •        working time allowance for care,
  •        paternity leave,
  •        parental leave,
  •        taking unpaid leave to care for a child, or
  •        the submission of applications under the previous point.

In the case of an employee’s request, the employer has 15 days to justify the termination. In practice, this means that the employer shall always be prepared to justify the reason for termination.

The above changes will typically come into force on 1 January 2023, applicable also to already existing employment relationships – although the legislator leaves a certain implementation period for businesses.

If you have any questions about the above, please contact us. Of course, we will also provide you with details of any further changes in the context of a personalised, partner-specific information session.

 

dr. Papp Anna Katalin –

dr. Csabai Marianna –

 

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Exemption from work during adoption

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

Pursuant to the amendments of Act I of 2012 on the Labour Code (“Labour Code”) effective as of 1st September 2020, the employee shall be exempted from the requirement of availability and from work for a maximum of 10 working days per year during the period of preparation for adoption.

The pre-adoption phase provides an opportunity for parents intending to adopt and the child to be adopted to meet, introduce themselves and start to get to know each other before the adoption. Also during this period, the living conditions of the parents wishing to adopt will be assessed, counseling will be provided by the child protection service and, if required, a free adoption course will be conducted.
As the procedure involves a number of tasks for the employee, the legislator considered it necessary to exempt the employee from his/her requirement of availability and work during this period.

The exemption is available to both prospective parents, who are entitled to an absence fee for this period. The exemption shall also apply in the case of an executive employee, from which the employment agreement of the executive employee may not deviate.

The conditions for claiming the exemption are defined by the Labour Code as follows:
– exemption from availability and work is possible on the basis of a certificate issued by the adoption organization;
– the employee may claim the exemption within 90 days following the issuance of the certificate;
– the employee shall inform his/her employer at least 5 working days in advance of his/her intention to claim the exemption;
– the employee must be exempted on the dates specified in his/her request, therefore it is up to the employee to determine the dates;
– the Labour Code does not stipulate that the exemption of 10 working days should be granted to the employee only continuously, therefore the employee may request that the exemption be granted in several installments within 90 days from the issuance of the above-mentioned certificate.

If you have any questions regarding the above, please feel free to contact us.

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Aid Provided To Employment Is Very Limited

News / / , , , , ,

The Hungarian government announced that they are going to wage support the wages to those employees that who are still able to work.
The the maximum amount of Wage Subsidy shall be HUF 74,900 / employee. However, in order to request the employee and the employee jointly shall apply for the wage subsidy on cinditionsconditions that they both comply with even the company has to meet certain extensive criteria and which this further limits it’s use. The employers must also present its measures taken or is expected to take to overcome the economic difficulties and to exhaust the working time available for rescheduling work and that is operation is a national interest which is undefined category at the moment. Application for the Wage Subsidly may be submitted from the 16th of April 2020. In order to be eligible compliance with the strict requirements must be substantiated by fully comprehensive and detailed documentation. Should an application refused by the authority, no appeal or any legal way is allowed.

Government decree containing further derogations from the labour code for example:as the employers can unilaterally introduce a framework of working time up to 24 months.

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Derogations in the application of Labour Code for the duration of state of emergency

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

Effective as of today (19 March 2020) until 30 days after the end of state of emergency, the Labour Code shall be applied with derogations as a part of the economic measures announced yesterday. Please see our brief summary as follows:
1. Derogations to be applied unilaterally by the employer:

a) employer may also amend the announced work time schedule within 96 hours of the start of the daily working time; it is important to note that the rules of announcing annual paid leave/ vacation did not change and must be notified 15 days in advance;

b) employer may unilaterally order home office/ remote work for the employees;

c) the employer may implement the necessary and justified measures to check employees’ health status. The Government Decree does not specify the measures necessary and justified, therefore the employers must consider this for themselves, in compliance with the data protection legislation and the HDPA’s legal opinion, as the application of the GDPR has not been suspended for the duration of the state of emergency. It mainly relate to the mostly popular planned fever measure which may only be applied with the restrictions provided by the HDPA.

Collective agreement provisions deviating from the above may not be applied for the duration of the state of emergency, which also means that in any other question the Collective Agreement is applicable.

2. Derogations to be applied by the separate agreement of the parties:
The Government Decree fully extends the possibility of separate agreement between the employer and the employee, which may derogate from the provisions of the Labour Code. It may only be interpreted – although there is no express provision – that it allows the employers to agree with the employees on conditions that are detrimental to the employees – while earlier the Labour Code only allowed deviation in favour of the employees. In that way, thus allowing the establishment of specific and flexible rules for the duration of the state of emergency.

3. The right approach would be if before conclusion of the separate agreement with employees in matters are beyond the above cases and regulated in the Collective Bargains, the employers consult with the Trade Union and the Works’ council if the planned deviations will affect the bigger group of the employees.

The economic measures of the Government in relation to the coronavirus epidemic

On 18 March 2020 the prime minister has announced exceptional economic measures to reduce the impact of the coronavirus epidemic.

According to these measures, in the following sectors the employers shall not pay contributions after their employees, and the contributions of their employees are also significantly reduced (they shall not pay pension contribution, and health insurance contribution is reduced to the minimum set by law) until 30 June 2020:

• tourism
• hospitality ( gastronomy, hotels etc.,)
• entertainment
• sport
• cultural services
• passenger transport

In the above sectors, lease agreements may not be terminated and the amount of rent cannot be raised during this period.

Taxi drivers under ‘small enterperneurs” tax payers are exempted from tax payment.

The tourism sector is also exempted from paying the tourism development contribution.

The Government Decree foresees further legislative changes. We are monitoring for further possible government measures continuously.

The purpose of the publications announced on our website is to provide a brief, concise information on certain issues. The content of this website and the publications is not exhaustive and does not constitute a legal advice. Should you have any specific questions or inquires regarding any issues investigated by our publications, please contact us and we will be happy to be at your disposal.

Derogations in the application of Labour Code for the duration of state of emergency Read More »

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 Labour Code Read More »

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:

News on the amendments of Act I of 2012 on the Labour Code Read More »

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