Littler Global Guide - Hungary - Q4 2018

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 Q4 2018 Global Guide Quarterly updates   Download full Q4 2018 Global Guide Quarterly

Changes to Labor Code Effective as of January 1, 2019

New Legislation Enacted

Author: Zoltán Csernus, Attorney — VJT & Partners Law Firm

Several changes to the Labor Code take effect January 1, 2019. First, working hours’ timeframe (a timeframe within which the daily working hours can be allocated unequally) can be increased from one to three years by a collective bargaining agreement (CBA) concluded with a trade union. Also, employers with a CBA may order 300 hours of overtime (OT) work yearly (increased from 250). Further, through a separate agreement between the employer and employee, the employer can order 150 (or respectively 100) hours of OT work (up to a total of 400 OT working hours) annually. The said agreement can be terminated by the employee only by the end of the calendar year.

Increase of Statutory Minimum Wage

New Order or Decree

Author: Zoltán Csernus, Attorney — VJT & Partners Law Firm

Through a new government decree, the statutory minimum wage increased by 8%. Accordingly, as of January 1, 2019, the statutory minimum wage for unskilled employees is HUF 149.000 (approximately EUR 465) and HUF 195.500 (approximately EUR 610) for employees with at least secondary school.

Invalid Penalty Stipulation in Non-Compete Agreement

Precedential Decision by Judiciary or Regulatory Agency

Author: Zoltán Csernus, Attorney — VJT & Partners Law Firm

According to the Supreme Court, the penalty stipulation of a non-compete agreement is invalid if the penalty is stipulated for a breach of obligation of the former employee to report to his former employer about his current employment on a monthly basis during the non-compete period if the current employer is not a competitor of the former employer and the breach is only the failure of such reporting.

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.