Employment
A 2012 Labour Code that is unusually contract-friendly
Act I of 2012 rewrote Hungarian labour law with wide scope for the parties to derogate by collective agreement. Notice starts at 30 days and rises with service, and a large annual overtime allowance made the 2018 amendment politically explosive.
Key rules
- Notice is 30 days, extended by service up to 90 days.
- Ordinary overtime is capped at 250 hours a year, or 400 by collective agreement.
- Working time may be averaged over reference periods of up to 36 months in defined cases.
- Dismissal must be justified and communicated in writing, with a 30-day limit to sue.
Governing law
- Act I of 2012 on the Labour Code (2012)
- Act CXXV of 2018 amending the Labour Code (2018)The overtime allowance.
- Act LXXV of 1996 on labour inspection (1996)
In practice
The 30-day window to challenge a dismissal is one of the shortest in the EU, and it runs from receipt of the notice rather than from the end of the notice period.