Global Compliance Desk – Hungary

The Hungarian Parliament recently passed the following amendments to the certain provisions in the Hungarian Labor code which have come into effect from January 1, 2019. 

Overtime Requirements

• The amendment raises the mandatory yearly cap on overtime from 250 to 400 hours per year and the weekly ceiling including extra overtime will be 48 hours of work. Employees and employers can agree up to 300 hours extraordinary working time per year under a collective agreement. Beyond that, on the basis of a written agreement between the employer and the employee up to 100 hours of extraordinary working hours per the calendar year (voluntary overwork).
• The amendment permits employers to extend the working time banking period to a 36 month instead of the previous 12-month period, through a CBA. Hence, employers can defer overtime payments to employees for up to three years. The previous deferment period for overtime payments under the law was one year. 
• The amendments empower employers to enter into overtime arrangements directly with employees notwithstanding unions and already-existing collective bargaining agreements.  

Working Time Scheduling Requirements

The employer shall set the working time schedule for minimum one week, atleast 168 hours (one week) prior to the beginning of the event. In the absence of communication, the previous working time schedule applies.