Littler Global Guide - Hungary - Q1 2017

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

View all Q1 2017 Global Guide Quarterly updates

Regulation Relaxed Over Relationship Between School Cooperatives and Students

Enacted Legislation

Author: Zoltán Csernus , Partner — VJT & Partners

The school cooperatives provide services to its clients through the work of its members (i.e. the students). Typically these services are low-skilled labor for retail chains. The relationship between the school cooperatives and its members (i.e. the students) was regulated by the Labor Code, but an amendment of the Labor Code recently carved out such relationship and now it is regulated mostly by the Civil Code. As a result, the regulation of such relationship is much more loose, e.g. with no obligatory and detailed justification in case of termination of the relationship, no severance payment etc.

Increase to the Minimum Wage

New Order or Decree

Author: Zoltán Csernus , Partner — VJT & Partners

As of January 1, 2017 the government increased the minimum wage for unskilled employees from HUF 111,000 (approximately EUR 360) to HUF 127,500 (approximately EUR 415), while the minimum wage for employees with at least secondary school diploma was raised from HUF 129,000 (approximately EUR 420) to HUF 161,000 (approximately EUR 525).

Dismissal May Be Justified Even Absent Written Policy

Precedential Decision by Judiciary

Author: Zoltán Csernus , Partner — VJT & Partners

Supreme Court ruled that the lack of internal written policy does not exempt the employee from complying with the general behavior norms and practice used at the employer, thus breach of such rules entitles the employer to terminate the employment with immediate effect. In the given case the employee took home sun glasses which were forgotten in the shop by a client. The shop's cameras recorded it and although there was no written policy on the storage of goods left in the shop by the clients, the employer had a well-known practice for such cases. The employer terminated the employment of this employee with immediate effect, and the Supreme Court upheld this decision. Citation: EBH2016. M.28

Supreme Court Rules Over Reinstatement After Unlawful Termination

Precedential Decision by Judiciary

Author: Zoltán Csernus , Partner — VJT & Partners

Supreme Court issued an opinion about the unlawful termination of the employment. According to this opinion, if the employer terminated the employment unlawfully by breach of equal treatment obligation, or in some other special cases (e.g., the employee was pregnant or a trade union officer, etc.) and the employee requires it, the court has no choice but to reinstate the employment, even if the employer claims that the job position was terminated due to reorganization, and currently there is no such job position at the employer. The time period between the unlawful termination and the reinstatement has to be counted as a time period spent in employment with all of its financial consequences.

Good Friday as a Holiday

Proposed Bill or Proposed Initiative

Author: Zoltán Csernus , Partner — VJT & Partners

In line with the government's initiative, the parliament passed a bill which declares Good Friday as a public holiday. The act is not in force yet.

Appointment of an Employee as a Work Safety Representative

Upcoming Deadline for Legal Compliance

Author: Zoltán Csernus , Partner — VJT & Partners

As of January 8, 2017, all employers with more than 20 employees must appoint an employee as a work safety representative. (Prior to the recent amendment, the threshold was 50 employees). Failure to comply with this law will subject the employer to a fine by the work safety authority.

Decrease in Employment Litigation


Author: Zoltán Csernus , Partner — VJT & Partners

The new Labor Code rules (enacted in 2012) provide in case of unlawful termination by the employer only the recovery of the actual, proved loss of income up to 12 months of salary for the employee, and the rules on punitive damages of additional maximum 12 months of salary are not in force anymore. As a result, the number of employment litigations decreased.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.