Labor law
All employment relationships in Hungary are governed by the Hungarian Labour Code. It applies to everyone who works in Hungary, regardless of their country of origin or nationality. It also lays down the rights and obligations of employers and employees.
Employee rights
A) Right to a minimum wage
This means that a full-time worker (more than 36 hours a week) cannot earn less than:
- 262 800 HUF per month;
- 61 340 HUF per week;
- 12 270 HUF per day;
- 1 534 HUF per hour.
A worker in a job requiring at least secondary education or secondary vocational qualification is entitled to a so-called guaranteed minimum wage, which is higher than the former minimum wage:
- 326 000 HUF per month;
- 74 950 HUF per week;
- 14 990 HUF per day;
- 1 874 HUF per hour
The minimum wage is set by law (government decree) each year.
B) Right to paid leave
All workers are entitled to a minimum of 20 days of basic leave per year. In addition, extra days off are granted depending on age, number of children and type of work.
C) Right to a safe working environment
The employer must ensure that the worker is able to work in conditions that are safe and without risk to health.
These include adequate protective equipment, sufficient rest time, sufficient and not overburdened staff, and a safe environment.
D) Right to terminate
All workers have the right to terminate their employment. This can be done in three ways:
- Termination: in this case, consent is not required, there does not need to be agreement between the parties to terminate.
- Termination with immediate effect: this applies if one of the parties seriously breaches its contractual obligations or engages in conduct incompatible with the employment relationship. In all cases, reasons must be given in writing.
- Mutual agreement: in this case, the employee and the employer decide jointly to terminate the employment relationship.
The notice period is set out in the employment contract, but it cannot be less than 30 days, except in the case of immediate termination.
E) Right to paid overtime
Overtime is work in addition to normal working hours, which can only be ordered by the employer in justified cases and is subject to very strict rules. For overtime, the worker is entitled to a 50% bonus on top of his/her normal pay.
Overtime may be ordered only if it does not exceed the total working time worked.
- 12 hours a day
- 48 hours a week
Overtime should not normally exceed 250 hours per year.
Employee obligations:
The employee must
- appear at the place and time required, and be fit for work;
- be available to the employer for work during working hours;
- do their job with skill and care, according to the rules;
- behave in a way that is appropriate for the job.
Employer's rights
The right to manage an employee
This means that the employer can control, instruct and regulate the employee’s behaviour during the work period.
Disciplinary law
In the event of non-compliance, the employer can use disciplinary measures. This mainly involves a warning, the most powerful of which is extraordinary dismissal.
Staff rights
This includes the classification, grading, reclassification, promotion or termination of employment (termination of contract) of an employee.
Obligations of the Employer
The employer must
- A) employ the worker in accordance with his contract and the rules;
- B) provide the necessary direction and knowledge for the work;
- C) pay wages;
- D) employ the worker to do work which does not have adverse consequences for him or her;
- E) modify the working hours and working conditions of the worker, depending on his or her state of health;
- F) ensure safe working conditions.