Act I of 2012 governs the rules of labor and employment in Hungary. The Hungarian legislation for employment is similar to that in other European countries. There are specific requirements for the content of the contracts, their termination and basic rights that employees are entitled to.
Any employment contract in Hungary must be done in writing and must contain information such as:
- the names of the parties;
- job description;
- the location at which the work will be carried out;
- payment and basic salary, etc.
Types of employment contracts in Hungary
Employment contracts in Hungary can be fixed-term or concluded for an indefinite period of time.
Assignment contracts may be concluded for sole traders that work with a company in Hungary
and invoice the company. This type of contract is economical for the employer.
Fixed-term contracts are used for temporary work in Hungary. They are usually used for seasonal jobs, in the agricultural or tourism fields.
Holidays and overtime in Hungary
The basic number of holidays in Hungary is 20 days. Additional days apply for executives, parents, juveniles and workers that perform hazardous work. Additional vacation days may be awarded according to the seniority of the employee.
The number of working hours per week in Hungary is 40. This applies for full time employment. Employees in Hungary cannot work more than 250 overtime hours per year.
Termination of employment contracts in Hungary
Employment contracts in Hungary may be terminated immediately, in case of a material breach, negligence or if it becomes impossible to maintain the current working relationship.
Either party may choose to terminate the employment agreement, in which case a legal notice period must be observed. The length of the legal notice period is calculated according to the seniority of the employee as follows:
- 0-3 years: 30 days;
- up to 5 years: 45 days;
- up to 10 years: 50 days;
- 10-15 years: 55 days;
- 15 to 18 years: 60 days;
- 18 to 20 years: 70 days;
- after 20 years: 90 days.