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Doing business in Hungary: Staff welfare

10 April 2012
by Ina Dimireva -- last modified 10 April 2012

Social legislation in Hungary ensures equal opportunities for men and women and sets health and safety standards at the workplace.


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Legal requirements

Social rules

 

Non-discrimination, equal treatment and gender equality

Ensuring equal opportunities for men and women is one of the fundamental democratic principles of the legal system in Hungary.

Act on the Promotion of Equal Treatment and Equal Opportunities

Equal rights for men and women, and protection of mothers, women and minors

Equal Treatment Authority

Health and safety at work

The Health and Safety Act is one of the key documents detailing health and safety requirements for work organisations, as well as requirements for preventing work accidents and employment-related illness.

Health and Safety Act

The labour and occupational health and safety authority responsible for the public administration of health and safety at work is the Hungarian Labour Inspectorate, as well as the occupational health and safety and labour inspectorates of the Budapest municipal and county administration bodies for occupational health and safety and labour.

Hungarian Labour Inspectorate

Under the Health and Safety at Work Act, employers have to provide an occupational healthcare service for all employees.

Decree on Occupational Healthcare Services

Labour law

 

Contract law

General labour regulations on the territory of the Republic of Hungary are outlined in the Labour Code.

Labour Code

An employment contract is a written agreement between an employer and an employee creating an employment relationship and containing the rights and obligations of the parties to the employment relationship.

Mandatory components of an employment contract

Essential elements of an employment contract

Rules for amending employment contracts

Automatic amendments to employment contracts

The employer's obligation to provide information when concluding a contract

Employment relationships

The creation of an employment relationship is based on the conclusion of an employment contract that has strict requirements concerning its content and form. There is also the possibility of “simplified” employment, where the employment relationship is created when the employer meets his reporting obligations in respect of the tax authority on the basis of an agreement between the parties, or a simplified contract of employment is concluded.

Employment of foreigners in Hungary

Commencement and duration of the employment relationship

Parties to the employment relationship

Termination of employment

Termination of employment by mutual consent

Termination of employment during the probation period

Wage types

Average earnings

Working hours and schedule

Breaks and rest days

Normal leave, basic leave

Simplified employment

Labour protection

Employers must pay pension insurance contributions, health insurance contributions and labour market contributions every month, in order to cover any social security benefits. They must also pay sickness benefit contributions in the event that any sickness benefits are paid. They also have an obligation to pay healthcare contributions in order to cover healthcare services. Employees are entitled to fifteen working days' sick leave per calendar year for periods of incapacity owing to illness. In certain cases, there is a possibility of exemption from work.

National insurance contributions

Healthcare and labour market contributions

Healthcare contributions

Pension insurance contributions

Level of contributions to be paid

Sickness benefit

Compensatory leave

Special leave

Exemption from work

In the interests of working safely, employers must provide their employees with health and safety training, and arrange preliminary, periodical and one-off medical examinations for them.

Decree on Medical Examinations of Fitness for Work

Health and safety training, and preliminary and periodical medical examinations

Litigation

 

The labour courts operating in the counties and the capital city must be consulted in relation to legal employment disputes.

Labour courts

Employment disputes

Consequences of neglecting employment obligations

Refusal to work and follow employer's instructions

Trade unions

Works council

Secondary employment and work on the side

Mandatory social rules complete the requirements related to managing staff.

Businesses are free to go beyond the minimum social legal requirements at their own initiative.

Administrative procedures

Non-discrimination, equal treatment and gender equality

 

The Equal Treatment Authority is a national body that receives reports and complaints relating to discrimination throughout the country.

Equal Treatment Authority

Form for reporting a breach of the equal treatment requirement

Health and safety at work

 

In any case, the requirements for working safely so as not to endanger health must be ensured by the employer. It is an important provision that employers may not provide employees with financial or other rewards instead of fulfilling the requirements for working safely so as not to endanger health.

Requirements for health and safety at work 

According to the provisions of the Health and Safety Act, employers are obliged to perform a qualitative and, where necessary, quantitative assessment of the risk of endangering the health and safety of employees.

Guide to carrying out a workplace risk assessment

Social security

 

The Social Security Number (TAJ number) is a personal identifier that Hungarian nationals receive at birth and keep all their lives. This code is used in records relating to healthcare, social and personal pension systems. TAJ numbers are generated by the National Health Insurance Fund.

Social security card

National Health Insurance Fund

Employers must pay pension insurance contributions, health insurance contributions and labour market contributions every month, in order to cover any social security benefits, and also sickness benefit contributions (in the event that any sickness benefits are paid). They also have an obligation to pay healthcare contributions in order to supplement the resources necessary to fund healthcare services in respect of certain income.

National insurance contributions

Healthcare and labour market contributions

Healthcare contributions

Pension insurance contributions

Jobseeker's allowance

Jobseeker's assistance

Accidents at work and occupational diseases must be reported, investigated and recorded. Accidents at work that lead to incapacity must also be investigated immediately, and the result must be recorded in the workplace accident log book. The circumstances of any accidents at work that do not lead to incapacity must also be clarified, and the results must be recorded.

Workplace accident log book

Amendment to the workplace accident log book

Resources

 

Websites of governmental bodies responsible for health and safety at work:

Ministry for National Economy

Hungarian Labour Inspectorate

Programmes

The Social Renewal Operational Programme focuses on job market supply, human resources development and increased involvement in the job market.

Social Renewal Operational Programme - National Development Agency

Social Renewal Operational Programme

The Government’s main aim with the New Széchenyi Plan Employment programme is to increase employment and encourage employment in target groups for equal opportunities.

New Széchenyi Plan - Employment programme

The aim of the Partnership for Safe Employment project, launched by the former Ministry of Social Affairs and Labour and the Hungarian Health and Safety at Work and Labour Inspectorate, is to promote safety at work through voluntary commitments from participants.

Partnership for Safe Employment

The purpose of the National Equal Opportunities Network is to support the government's equal opportunities policy. It also aims to support the integration policies designed for social acceptance of disadvantaged groups.

National Equal Opportunities Network

Source: Your Europe

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