Navigating Changes: Key Changes In Labour And Immigration Law In 2023 In Hungary

• Published date: 24 January 2024
• Subject Matter: Employment and HR, Immigration, Contract of Employment, Unfair/ Wrongful Dismissal, Employee Rights/ Labour Relations, General Immigration
• Law Firm: Schoenherr Attorneys at Law
• Author: Mr D'niel Gera and Dóra Halmosi

2023 has brought about a series of changes that impact both employers and individuals seeking opportunities in the country. This round-up piece will explore the key developments that have shaped Hungarian employment and immigration law over the past year.

Employment

As of 1 January 2023, a significant modification to the Hungarian Labour Code came into force. The amendments, outlined in Act LXXIV of 2022, focused on areas such as information obligations of the employer, abuse of rights, new types of holidays and rules to make it easier for parents to work. In March 2023, the European Court of Justice (ECJ) adopted a decision that had a major impact on the calculation and allocation of daily and weekly rest times.

Significant modification to Hungarian Labour Code

Information obligations of the employer

The 2023 amendments have refined the information notice requirements under sections 46 and 47 of the Labour Code. Employers are now obliged to provide detailed information within seven (instead of 15) calendar days of the commencement of employment. Notable additions to the information notice include:

• working time (ie, daily working time, its beginning and end and length of any overtime work);
• benefits;
• termination rules;
• employer's training policy; and
• the name of the authority to whom the employer pays employment taxes.

Employees working abroad for over 15 days must receive additional information concerning remuneration and reimbursement rules, along with essential details on the rights and obligations of cross-border service providers and their employees.

Abuse of rights

Section 7 of the Labour Code establishes the prohibition of abuse of rights as a fundamental provision guiding behaviour in employment relationships. As of the 2023 amendment, changes to the rules of evidence have shifted the burden of proof in cases involving wrongful termination due to abuse of rights in favour of the employee. The claimant (typically the employee) is now responsible for proving the facts and detriments, while the party exercising the right (usually the employer) must demonstrate the absence of a causal link. Additionally, starting in 2023, employees can request the court to reinstate the employment relationship if the employer have abused its rights to terminate it.

Paternity and parental leave

Aligned with Directive (EU) 2019/1158, Hungary has extended the paternity leave from five to 10 days. With the 2023 Labour Code amendments, Hungary introduced parental leave...