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Expected legislation on the horizon

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

Reading time: 4 minutes

The Government has submitted its legislative programme for the period extending until the end of 2026 to the Parliament, from which it is already becoming apparent which regulatory areas are expected to undergo significant changes in the near future.

The document contains a total of 83 proposals, the most important of which are summarised below.

Labour law proposals

Pay transparency

In the field of labour law, a particularly significant initiative is the draft legislation on pay transparency between men and women, which aims to transpose Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms (“Pay Transparency Directive”) into national law. The proposed regulation is expected to impose substantial new obligations on employers, particularly in relation to the transparency of remuneration systems, the provision of information to employees, and regular data reporting requirements. The amendments aim to reduce the gender pay gap and to ensure more effective enforcement of the principle of equal pay for equal work. The adoption of the draft legislation is expected to take place in October 2026.

Platform-work

The transposition of the regulation of platform-based employment also serves to fulfil an EU legal harmonisation obligation is, which aims to improve and make more predictable the working conditions of labour performed through digital platforms. The Directive (EU) 2024/2831 on improving working conditions in platform work (“Platform Work Directive”) sets 2 December 2026 as the final deadline for transposition by Member States. In line with this, the Hungarian legislative process is expected to conclude earlier, as the adoption of the relevant national legislation is anticipated for October 2026.

Occupational safety and health

In the field of occupational safety and health, several forthcoming changes are also taking shape. The planned amendments related to the implementation of Regulation (EU) 2023/1230 of the European Parliament and of the Council on machinery and repealing Directive 2006/42/EC of the European Parliament and of the Council and Council Directive 73/361/EEC (“Machinery Regulation”), primarily aim to modernise the safety and health requirements applicable to machinery, with particular regard to the use of new technologies, including artificial intelligence.

Corporate law proposals

In the area of company law, amendments to Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings (“Ctv.”) are expected. Among other things, the proposal would introduce shorter deadlines for registering changes and conducting proceedings at the court of registry and would extend the application of certain EU regulations to general partnerships and limited partnerships. The proposal would also simplify administrative procedures related to cross-border operations, for example by abolishing the apostille requirement within the European Union and introducing an EU company certificate.

In this context, a further bill is also expected to be submitted to postpone the entry into force of Act LIX of 2025 on the Register of Legal Entities, as well as Act LX of 2025 on certain court proceedings relating to legal entities and winding-up proceedings. The postponement is primarily justified by delays in the development and readiness of the IT systems required for the implementation of the new regulatory framework.

Commercial law proposal

In the area of commercial law, changes to regulations governing foreign direct investment are expected. The planned changes aim to enhance the competitiveness of the investment environment and make the regulatory framework more investor-friendly, with regard to the energy sector. In this context, restrictions on transactions affecting the ownership structure of strategically important companies operating solar power plants are also expected to be abolished.

Digital state-related proposal

In connection with the development of the digital state, a review and amendment of Act CIII of 2023 on the digital state and certain rules on the provision of digital services (“Dáptv.”) and the related implementing decrees is expected. The proposed amendments would introduce clarifications and improvements based on practical experience, with particular regard to the functioning of electronic administration and e-government services.

Review of acts relating to the administration of justice

Finally, several amendments to legislation affecting the operation of the judicial system are also expected, in particular Act XLI of 1991 on Notaries Public, Act XLIX of 1991 Bankruptcy Proceedings and Liquidation Proceedings (“Cstv.”), and Act LIII of 1994 on Judicial Enforcement (“Vht.”). The purpose of these amendments is to implement the corrections necessitated by a review of the existing regulatory frameworks.

Summary

Our firm continuously monitors developments and submitted proposals, and where appropriate provides Clients with detailed updates on their content. Should you have any questions regarding the above, please do not hesitate to contact us.

Photo source: pexels.com, Efrem Efre 

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The foundations of artificial intelligence regulation in the European Union

Artificial Intelligence, News / / , , , , , , , ,

Reading time: 4 minutes

In 2024, the European Union adopted its Artificial Intelligence Regulation (the “AI Regulation“), which established the world’s first comprehensive regulatory framework for artificial intelligence. The provisions of the AI Regulation will gradually become mandatory until August 2, 2027. The AI Regulation refers certain implementation and supervisory tasks to the Member States, as a result of which a domestic regulatory framework for the use of artificial intelligence (“AI“) was also promulgated in Hungary in the fall of 2025.

Given that the AI Regulation will have to be applied almost in its entirety from August this year, CLVPartners is launching a series of newsletters on artificial intelligence to help with preparations. The aim of the series of articles is to present the legal issues related to the use of artificial intelligence in a practical yet easy-to-understand way. In the first part of the series, we will outline the basic concept of the current EU and Hungarian regulatory framework and its main objectives.

Purpose of the AI Regulation, concept of its regulation

AI is one of the fastest-growing areas of technology, and according to some forecasts, its application could bring significant benefits across a wide range of economic and social activities. At the same time, the European Union has recognized that the use of AI also carries a number of risks, such as the risk that its inappropriate use could jeopardize the fundamental rights and freedoms protected by EU law.

The purpose of the AI Regulation is to ensure that the development and use of AI systems takes place within a responsible framework. It is important to note that the AI Regulation applies not only to manufacturers, importers, distributors, and service providers operating in the European Union, but also to companies outside the EU if their products or services are available on the EU market or have an impact on EU citizens. To this end, the AI Regulation imposes obligations on developers and users of AI systems and establishes a uniform regulatory system for their authorization on the EU market. The AI Regulation stipulates that its regulatory framework serves to strengthen transparency and accountability and to promote the spread of human-centered and reliable artificial intelligence. It also aims to eliminate discrimination and bias, while ensuring that EU fundamental values and rights are upheld and providing effective protection against the risks posed by AI systems.

The AI Regulation takes a risk-based approach, classifying AI systems into four risk categories and assigning different rules and obligations to each category. The use of so-called prohibited AI systems that pose an unacceptable risk, such as cognitive behavioral manipulation or emotion recognition in the workplace, is already prohibited in the European Union. High-risk AI systems are subject to strict requirements, in particular testing, transparency, and human oversight obligations, and may only be placed on the market once these requirements have been met. These include, among others, systems used in medical diagnostics, self-driving vehicles, or biometric identification. For low-risk AI systems, such as chatbots, transparency obligations are the main requirement, while the AI Regulation does not set out specific rules for minimal or risk-free AI systems.

The AI Regulation is directly applicable in all EU Member States and, due to its nature as a source of law, cannot be transposed into national law and does not need to be promulgated separately. As a result, the AI Regulation creates a uniform legal framework for the regulation of artificial intelligence throughout the European Union.

Hungarian regulations

In addition to creating a uniform EU regulatory framework, the AI Regulation also imposes several obligations on Member States. Accordingly, Member States, including Hungary, have begun to develop the institutional and legal frameworks necessary to ensure the effective implementation and supervision of the provisions of the AI Regulation.

Under the AI Regulation, the supervision of compliance with the requirements for AI systems classified in each risk category will be the responsibility of the Member States. Accordingly, Member States are required to designate a market surveillance authority and a notifying authority responsible for assessing technical compliance. In addition, each Member State must establish regulatory test environments to support the development of safe and lawful AI.

To ensure compliance with these requirements, in the fall of 2025, the Hungarian Parliament passed Act LXXV of 2025 on the implementation of the European Union’s Artificial Intelligence Regulation in Hungary (“AI Act“), which lays the foundations for the domestic regulatory and institutional structure. The AI Act is also implemented by Government Decree 344/2025 (X. 31.) on the implementation of Act LXXV of 2025 on the implementation of the European Union’s regulation on artificial intelligence in Hungary, which lays down detailed rules on the operation of authorities performing tasks related to artificial intelligence. (X. 31.) on the implementation of Act LXXV of 2025 on the implementation of the European Union’s regulation on artificial intelligence in Hungary (“AI Government Decree“), which lays down detailed rules on the functioning of authorities performing tasks related to artificial intelligence.

Under the AI Act, the reporting authority tasks are performed by a single body, the AI reporting authority. This authority is responsible for designating conformity assessment bodies that examine and certify the technical conformity of high-risk AI systems in advance. Under the provisions of the AI Government Decree, the National Accreditation Authority performs this task.

Under the AI Act, market surveillance tasks are also performed by a single authority. The market surveillance authority is responsible for examining the lawful use of AI systems after they have been placed on the market. The Act also requires the AI market surveillance authority to establish and operate an AI regulatory test environment from August 2026 and to act as a point of contact. Under the provisions of the AI Government Decree, the Minister for National Economy is responsible for performing these tasks.

The AI Act also establishes the Hungarian Artificial Intelligence Council, which acts as a coordinating and advisory body. The task of the Hungarian Artificial Intelligence Council is to promote the uniform interpretation of the AI Regulation in Hungary through guidelines and position statements.

Summary

In summary, it can be said that in 2024, the European Union was the first in the world to adopt a comprehensive regulatory framework whose primary objectives are to promote the spread of human-centered, transparent, and reliable artificial intelligence, protect EU fundamental values and rights, and adequately address the risks arising from AI systems. The AI Regulation applies a risk-based regulatory approach, setting differentiated requirements according to the risk posed by each AI system.

The AI Regulation is directly applicable in all Member States, but leaves the implementation and supervisory tasks to national authorities. As a result, in the fall of 2025, Hungary enacted the AI Act and the related AI Government Decree to ensure the domestic implementation of the AI Regulation.

Photo source: pexels.com, Dušan Cvetanović

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