June 19th, 2012

New amendments seen tightening up Hungary’s labor code

The recent amendment to Hungary’s labour code has tightened up rules for employees, a summary of tax-information website ado.hu based on expert opinions said on Tuesday.

The changes, drafted in line with European Union laws and guidelines, were passed by lawmakers on Monday and will take effect on July 1.

According to the website, the new code will hinder people working flexible hours by scrapping pay for overtime.

It noted that the code introduced simpler rules for employing seasonal workers, involving less complicated paperwork for the employer.

Tax consultancy Deloitte told MTI that many companies were not prepared for all the changes coming into force next month. Labour code provisions govern not only future work contracts but existing ones, too, which should be modified accordingly to avoid possible disputes later on.

Deloitte also called attention to the introduction of “atypical” forms of employment, such as on-call work or split jobs, as well as collective employment by more than one company.

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