From 1 January 2023, the Hungarian Labour Code will be amended on several points. Part of these include legal harmonisation amendments, but the changes affecting the obligations and internal functioning of all employers in relation to the employment relationship are of much greater importance to employers, which are definitely worth reviewing and preparing for at the organizational level among year end preparations and new year planning.

 

1. Broader employer information obligation

The range of information to be included in the employer's information is expanded, so that in addition to the information to be provided so far, employers are obliged in the future to also include among other things, specific information related the workplace, to the start and duration of the employment relationship and the period of the working time schedule, rules of employment (thus the days of the week on which working time can be allocated, the schedule on the possible start and end time of daily working hours, the possible duration of extraordinary work, the specific nature of the employer's activities - multi-shift, seasonal, etc.), the rules on termination of employment, as well as the training policy in force and the authority to which the public burden is paid. Additionally, the information to be provided in case of working abroad will also be extended.
The deadline for the obligation to provide information will be reduced from 15 days to 7 days, and in case there is a change in the content of the information, it must be communicated to the employee immediately. Based on the above, it is recommended to expand the written information according to Section 46 of the Labor Code used by the employer until now and to make it effective from 1 January 2023 not only for new comers but also for employees who are already employed.

2. Exemption from the obligation to work in case of medical incapacity

In addition to incapacity for work, the exemption from the obligation to work and to be available for work includes - despite the objections of the trade unions - the case of an employee who is otherwise unfit to perform his/her job for health reasons. The practical significance of this from the employer's point of view is that an employee who is unable to work for health reasons should continue to be kept on the payroll by the employer, but since he is not employed, he should not be paid salary for this period.
A new point in the list is the exemption for the employee from the obligation to be available for work and to provide personal care for a relative who is in need for serious health reasons, or for a person living in the same household as the employee, for a maximum of five working days per year (carer's leave).

3. Unfavourable changes to leave rules for the employees

From next year, in exceptional cases of major economic interest or for reasons directly and seriously affecting the operation of the employer, the employer may refuse to grant leave at the date requested by the employee, may change the notified date of granting leave, may interrupt leave already taken by the employee, except for paternity and parental leave, and in case of collective agreements, the employer may grant one quarter of the leave by at the latest by 31 March of the year following the due date. In this way, employee’s autonomous right to independent free use of the leave, determined until now in 7 days has been significantly reduced.

4. Working time frame and working schedule

With regard to the working time frame, the written information on the duration of the working time frame must also include the duration of the working time to be effectively completed and the rules on daily and weekly rest periods have also been reformulated.
Based on a collective agreement, the working schedule previously communicated by the employer may be changed at least 48 hours before the start of the day. Until now, this could be changed without restriction, as the minimum notice period of 96 hours was also allowed by the Labour Code to the detriment of the employee.

5. Proportioning the probation period

The fixed-term employment relationship can only be extended or re-established within six months of its termination if there is a legitimate interest on the part of the employer. In such case, the probation period cannot be renewed and, in case of an employment relationship concluded for less than 12 months, the parties are obliged to agree on a pro rata basis probation period.

6. Prohibition of abuse of rights - sharing the burden of proof

From next year, in labour and employment litigation related to abuse of rights, an amendment aimed at speeding up the procedure for employers' legal representation is that, the aggrieved party must prove only the underlying fact, circumstance and harm, while the right holder – who caused the harm - must prove that there is no causal link between the fact, circumstance and harm.
In this regard, therefore, employers need to be even more careful, typically in the event of termination of employment, since it is also a significant change that cases of reinstatement of employment are also extended to include cases of non-abuse of rights.

 

7. New type of leave, flexible working conditions, changes for executive employees

Regarding the reconciliation of private life, in particular family life and work, existing EU directives oblige Member States to set up appropriate set of rules for employees in the event of a birth of child, for the period of early childhood or for the care of a dependent relative, so the current amendment extends paternity leave of 10 working days and clarifies the provisions on parental leave and carers' allowances.
The scope of the prohibitions on termination is extended: in the future, employers will not be able to terminate employment by giving notice during paternity leave, parental leave or carer's leave, among others. In addition, the legislation imposes an obligation on the employer to give reasons in cases where it wasn’t necessary until now (such as during the probationary period, in the case of a managerial employee or an employee who is retired), if the employee claims that the real reason for the termination was, inter alia, the use of paternity, parental or carer's leave.
Employees will have the right to initiate an amendment to their employment contract from the seventh month of employment and to request part-time or remote working employment, if this option is available at the employer. In addition, the employee may request a change in the place of work, working hours, remote working and part-time work until his/her child gets 8 years old. The employer must give reasons for refusing the request which the employee may challenge before court.
In case of managerial employees, the subjects from which the parties may not deviate by mutual agreement are extended: thus the parties are prohibited from giving notice for the period of paternity and parental leave, nor can the parties modify the content of these legal institutions, and they are exempted from the obligation to be available during the period of carers' leave.

The purpose of this article is to provide a brief, concise information on certain issues. The content of this article is not exhaustive and does not constitute a legal advice.

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