With our legal advisory services you can ensure your company remains compliant with Labor, Industrial and Corporate Laws, while the best interests of your Hungarian company are also always protected.
Running a business in Hungary requires regulatory compliance. When you are planning to contract new business partners, hire manpower or modify your company’s set-up, you must ensure that all procedures are carried out according to the regulations, and all business activities are covered by legally binding documents. This supports the transparency of your company and at the same time protects your interests.
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Hungarian Law defines the characteristics of professional relationships, including employment and partnership. The type of contract you enter should be based on these definitions; if the relationship of you and your partner fits the definition of employment, you should enter an employment contract.
Labor inspectors have the right to investigate the true nature of your partnerships, and based on that re-qualify mandate contracts as employment contracts in case they deem that well-grounded. They may also fine employers who violate the Labor Code by entering mandate contracts on false premises instead of employing someone.
When the operation of the company so requires, the employer is entitled to change the employees’ regular place of work for a temporary period (called secondment). The duration of the secondment cannot be longer than 44 working days a year.
The working place is a statutory element of the employment contract. As a result, if it changes permanently, the employment contract should be modified, unless otherwise agreed by the parties or otherwise provided in the applicable collective bargaining agreement. The employee’s oral consent is not enough.
Yes, after the probation period the employment contract may be terminated by either party with immediate effect in the following cases (Section 78 of the Labor Code):
- one of the parties has willfully or through gross negligence significantly violated a substantial employment obligation;
- one of the parties acts in a way that renders the continuation of the employment relationship impossible.
The right of extraordinary dismissal may be exercised within a period of 15 days from the date when the party has gained adequate knowledge of the grounds of dismissal, and at the latest within 1 year from the occurrence of such grounds for dismissal.