Hungary’s ruling Socialist Party seeks to pass legislation to put a cap on severance payments, MP Gergely Barandy told MTI on Monday.
According to the Socialist bill, which was submitted to parliament earlier in the day, employees in managerial positions would be entitled to a maximum of six months’ salary, Barandy said.
The bill comes in the wake of a series of cases eliciting public uproar when the amounts with which state-owned or subsidised companies rewarded departing employees came to light.
According to press reports, Budapest’s ailing public transportation company BKV might have used as much as 1.5 billion forints (EUR 5.4m) to give generous sums to employees leaving the company during the past two years. In a recent scandal, BKV continued to employ its HR head – after she had received 100 million forints (EUR 365,000) as severance payment upon her retirement.