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Last updated on: December 28th, 2023

Labor Requirements

The main source of employment law in Hungary is the Labor Code, which came into force in 1992 and was significantly revised in 2012 (last amended in 2020). The Labor Code governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, and employment relationships. Another important source of law is the Constitution of Hungary, which protects the basic rights of employers and employees.

Hours & Pay Regulations

Normal Working Hours

The regular daily working time is 8 hours per day (exclusive of overtime) or 48 hours per week (inclusive of overtime for the week). The employer and the employee can agree to increase daily working hours to not more than 12 hours daily for employees working on call or who are close relatives of the employer.     

 

Work shall be scheduled for 5 days a week, between Monday through Friday (standard work pattern). The scheduled working time of an employee may not be less than 4 hours except for part-time employees. According to the work schedule –

      • The daily working time of employees shall not exceed 12 hours including overtime or 24 hours in the case of employees in stand-by jobs.
      • The weekly working time of employees shall not exceed 48 hours including overtime, or 72 hours in the case of stand-by jobs if so agreed by the parties.

Employers are required to ensure that the work schedule of employees is drawn up in accordance with occupational safety and health requirements and in consideration of the nature of the work. The employer shall notify the working schedule in writing at least 1 week and at least 168 hours in advance of the start of the daily working time according to the schedule.

 

Daylight savings: If the date of switching to wintertime falls within the working hours of an employee as may have been scheduled, in such case, the daily or weekly working time can be exceeded by a maximum of 1 additional hour.

 

In cases where the duration of work performed by an employee cannot be measured, the entire duration of on-call duty with respect to such an employee shall be included in his/her scheduled daily working time. Labor Code, Act I of 2012, (as amended), §§ 93 – 100 and 103.

 

Working Time Banking

A working time bank allows employees to save and combine their working time, earned time off, or monetary benefits converted to time off and also enables them to accumulate longer periods of time off in the bank. Working time flexibility is primarily ensured through implementing and allocating cumulative working time (or working time banking) when the actual working time schedule can be adjusted to the labor force requirement

 

The employer may define the working time of an employee in terms of the ‘banking’ of working hours. The period covered by banking of working time shall be arranged based on daily working time (8 hours) and standard work pattern(5 days working week). Any public holidays falling on a working day within the standard work pattern and the duration of absence (for example due to training provided by the employer, breastfeeding, etc.) shall not be counted.

 

An employer shall ensure that the maximum daily working time in the working time banking is not less than 4 hours per day (except for part-time work) and shall not exceed 12 hours inclusive of overtime.

 

In the case of working time banking, the beginning and ending date shall be clearly mentioned to the employee.

 

The weekly 40 working hours (full-time) shall be completed during the whole period of working time banking in irregular weekly working time. During the work schedule compilation,  employees shall be entitled to weekly rest time for at least 2 days or 48 consecutive hours, and also 11 hours of consecutive rest time (daily rest) must be provided between the end of the daily work and the beginning of the daily work on the next day.

 

For example, when applying a working time banking of 2 months, the employer can schedule the working time of employees to weekly 45 hours in the first month and to 35 hours in the second month. In such cases employees work more than the weekly 40 working hours (full-time) in the first month and still, the additional working time shall not be considered overtime work. In the second month, employees work less than the weekly 40 working hours (full-time) and still shall be entitled to the employee’s monthly wage.

 

The maximum duration of working time banking is 4 months or 16 weeks. And the maximum duration of working time banking is 6 months or 26 weeks in the case of employees working in continuous shifts, working in shifts, etc.

 

The maximum length of working-time banking period can be extended up to 36 months if this is stipulated in a collective bargaining agreement. Labor Code, Act I of 2012, (as amended), §§ 93 – 94 and 143.

 

 

Split Working Time – The employer shall in agreement with the employee’s scheduled daily working time be up to 2 periods split up over the day. Between the split daily working times scheduled at least 2 hours of rest must be provided.

 

On-call and Stand by – An employee may be required to stand by and remain available beyond the regular daily working hours scheduled. Standing by for a period of over 4 hours may be ordered.

 

Pay – For on-call and standby duty, a premium corresponding to 20% and 40 %, respectively, of the regular wage must be paid. If the duration of  work performed cannot be measured, the employee is entitled to a 50% premium at the regular rate of pay

 

The monthly duration of standby duty may not exceed 168 hours, which shall be taken as the average in the event that banking of working time is used and the duration of on-call duty shall not exceed 24 hours and shall include both the duration of scheduled daily working time and overtime work on the first day of on-call duty. The employee may be ordered to be on stand-by for not more than 4 times a month if it covers the weekly rest day (weekly rest period).

 

In cases where the duration of work performed by an employee cannot be measured, the entire duration of on-call duty with respect to such an employee shall be included in the employee’s scheduled daily working time.

 

If an employee working in a stand-by job is scheduled to work on Sunday, he may not be scheduled to work on the preceding Saturday. Labor Code, Act I of 2012, (as amended), §§ 92, 103, 139-142, and 144(3).

 

Information Requirement

the employer must inform the employee of the essential characteristics of the employment relationship on the first day of the employment relationship, but no later than the seventh day. The obligation to provide information must cover the following:

      • start and term of the employment;
      • workplace;
      • the duration of the daily working time, the days of the week on which working time may be scheduled, the possible starting and finishing times of the scheduled daily working time, the possible duration of the extraordinary working time, the specific nature of the employer’s activity (multi-shift, uninterrupted, etc.);
      • number of annual leave days, the method of calculation and the rules of issuing the leaves.
      • the rules relating to termination of employment. In this context, reference should be made to the need for written declarations on termination of employment and to the possibilities for legal remedies and protection against dismissal.
      • the employer’s training policy, the length of time the employee may receive training, including training that is compulsory by law and training organized by the employer, and
      • the name of the authority to which the employer pays the public charge relating to the employment relationship. This is currently the National Tax and Customs Administration (NAV) in Hungary, so the NAV details should be provided in the information notice.

Labor Code, Act I of 2012, (as amended), §§ 46.

 

Recordkeeping Requirements – The employer shall keep records of normal working hours, overtime working hours, period of leave, and start and end times of standby work. The register can be kept by confirming the working time schedule communicated in writing at the end of the month and by indicating the change up to date. The records shall be maintained and kept up to date by the employment. Labor Code, Act I of 2012, (as amended), §§ 134.

Overtime

Any work performed beyond 8 hours per day or 48 hours per week shall be considered overtime work. The maximum overtime limit per day shall be 12 hours.

 

The employer may require employees to work up to 250 hours of overtime per year, but if the employer concludes an agreement with the employee in writing, the employee can be assigned an additional 150 hours per year, and overtime can be increased up to a maximum of 400 hours per year.

 

Employers also can take up to 36 months to settle payments of accrued overtime and may agree on overtime arrangements directly with employees without having to include unions in the negotiations.

 

Overtime working hours cannot be ordered – 

      • for the employee, from the time her pregnancy is established until her child is three years old,
      • for an employee raising his child alone until his child is three years old, or
      • in the event of a health risk identified by the employer for the job or the employee.

     

    Pay for Overtime Work – Employees are entitled to a 50% premium at the regular rate of pay for overtime work performed in addition to the daily working time as mentioned in the schedule of the employee, for work performed in the working time banking period, or for work performed over and above payroll period or time off from work, the duration of which shall not less than the amount of overtime work performed with adequate part of the base wage. Labor Code, Act I of 2012, (as amended), §§ 107­ – 109 and 143.

    Night Work

    Night work shall mean work carried out between 10 p.m. and 6 a.m. The employee’s daily working time during night work may not exceed 8 hours.

     

    Pay – In the case of employees working in shifts, if the beginning of their scheduled daily working time changes frequently, for work performed between 6 p.m. and 6 a.m., a 30% premium at a regular rate of pay (shift allowance) shall be paid. 

     

    Employees must be paid a 15­% premium at a regular rate of pay for working at night (performed between 10:00 p.m. and 6:00 a.m.), if the duration of night work exceeds 1 hour, provided that the employee is not entitled to shift allowance provided above. Labor Code, Act I of 2012, (as amended), §§ 139­ – 142.

    Breaks

    If the scheduled daily working time or duration of overtime exceeds 6 hours, the employee is entitled to a minimum 20-minute uninterrupted unpaid break from work. If the duration of work exceeds 9 hours, an additional 25-minute unpaid break must be given to the employee. Break shall not be included in working time.

     

    An agreement between the parties or a collective agreement may provide employees with a break between work of up to 60 minutes. The break must be issued by interrupting work. The break must be provided after at least 3 and at most 6 hours of work. The employer is entitled to issue the break between work in several installments, and the installment issued in the period must be at least 20 minutes long. Labor Code, Act 2012, (as amended), §§ 103.

     

    Daily Rest Period –

    Employees must be allowed at least 11 hours’ uninterrupted rest after the conclusion of daily work and before the beginning of the next day’s work. If the employee works split shifts, continuous shifts, multiple shifts, or seasonal work, the daily rest period must be at least 8 hours. Employees shall not be entitled to any rest period after an inactive standby period. 

     

    The daily rest period, if it falls at the beginning of summertime, shall be at least 10 hours, or at least 7 hours if the employee works split shifts, continuous shifts, multiple shifts, or seasonal work. Labor Code, Act I of 2012, (as amended), §§ 104.

     

    Weekly Rest – Employees are entitled to 2 rest days in a given week. Employees shall be provided at least an average of 48 hours of a weekly rest period.

     

    In the case of an irregular work schedule, the weekly rest days may be scheduled irregularly and after 6 days of work, 1 rest day shall be allocated in a given week. In the case of unequal working hours without interruption, multi-shift, seasonal activity employees shall be entitled to at least 1 weekly rest day per month.

     

    Employees shall be allocated at least 1 weekly rest day in a given month on a Sunday, except for part-time employees who work on Saturday and Sunday only. Labor Code, Act I of 2012, (as amended), §§ 105, 106, 140 and 143(3).

    Work On Rest Days

    If an employee works on a Sunday, they shall be entitled to a 50% premium at the regular rate of pay.  If an employee working in a stand-by job is scheduled to work on Sunday, he may not be scheduled to work on the preceding Saturday.

     

    Pay for overtime work on a weekly rest day 

    For overtime work performed on weekly rest days/periods, an employee shall be entitled to a 100% premium at the regular rate of pay or a 50% premium at the regular rate of pay if the employer provides another weekly rest day (weekly rest period).

    The time off or the weekly rest day (weekly rest period) shall be provided at the latest in the following month from when the overtime work was performed, or by the end of the banking of working time or the payroll period in the case of an irregular work schedule. By agreement of the parties, time off shall be provided at the latest by 31 December of the following year. Labor Code, Act I of 2012, (as amended), §§ 105, 106, and 143(3)

    Sunday Work

    Employees must be paid a 50 ­percent allowance in addition to regular wages for employees working in shifts and stand-by jobs on Sundays. If an employee working in a stand-by job is scheduled to work on Sunday, he may not be scheduled to work on the preceding Saturday.

     

    Pay for overtime work on Sunday – An employee shall be paid at a rate of 100 percent wage supplement or shall be paid at 50 percent if the employer provides another weekly rest day to the employee. Labor Code, Act I of 2012, (as amended), §§ 139­ – 142.

    Public Holidays

    The following 12 national holidays are observed in Hungary:

    • January 1: New Year’s Day
    • March 15: Revolution Day
    • Good Friday
    • Easter Monday
    • May 1: Labor Day
    • Pentecost Monday (varies)
    • August 20: St Stephen’s Day
    • October 23: Republic Day
    • November 1: All Saints’ Day
    • December 25­: Christmas
    • December 26: Second Day of Christmas

    Employees may be required to work on national holidays only if they are employed seasonally, the employer operates on a continuous basis or the nature of the business makes it necessary for the employer to be open on national holidays.

     

    Pay for Work on Holiday

    Employees who perform work on a holiday must be entitled to a 100% premium at the regular rate of pay. This wage supplement is also paid for work performed on Easter Sunday or Whit Sunday or public holidays which fall on a Sunday.

     

    Pay for Overtime Work on Holiday

    Employees who perform overtime work on a public holiday are entitled to a 100% premium at a regular rate of pay, or where the employer provides another weekly rest day/period for overtime work performed on a public holiday, employees are entitled to a 50% premium at a regular rate of pay. Labor Code, Act I of 2012 (as amended), §§ 101­ – 102, 140, and 143(4)

    Annual Leave

    Duration of Annual Leave – Employees receive basic and additional annual leave for each calendar year of employment. The basic annual leave entitlement is 20 working days. 

     

    Leave Entitlement Increase Based on Age of Employees – The annual leave entitlement of employees is increased with additional days depending on the age (not the seniority) of the employee with up to 10 additional working days. Employees shall be entitled to extra vacation time as follows: 

        • 1 working day over the age of 25;
        • 2 working days over the age of 28;
        • 3 working days over the age of 31;
        • 4 working days over the age of 33;
        • 5 working days over the age of 35;
        • 6 working days over the age of 37;
        • 7 working days over the age of 39;
        • 8 working days over the age of 41;
        • 9 working days over the age of 43;
        • 10 working days over the age of 45.

    Employees shall be first entitled to extra vacation time in the year when they reach the age. 

     

    Annual Leave Calculation – Employees are entitled to paid annual leave based on the time spent at work, consisting of vested vacation time and extra vacation time. The time spent at work shall include: 

        • any duration of exemption from work as scheduled; 
        • any duration of paid leave; 
        • any duration of maternity leave; 
        • the first six months of leave of absence without pay for caring for a child; 
        • any duration of incapacity up to 30 days per calendar year; 
        • any duration of leave of absence without pay taken up to three months for the purpose of actual reserve military service; 

       

      Granting of Annual Leave (Working Day/Calendar Days) – Leave shall be granted for working days according to the working hours. In the case of unequal working hours, every day of the week shall be considered a working day during the granting of leave, except for a weekly rest day according to the working time schedule and a public holiday. 

       

      Timing of Annual Leave – Employers shall provide 7 working days of annual leave time in a given year in not more than two parts, at the time requested by the employees, with the exception of the first 3 months of the employment relationship. Otherwise, annual leave shall be granted to contain at least 14 consecutive days at a time. 

      Annual leave shall be granted in the year in which it is due; 

            • If the employment relationship commenced on the first of October or subsequently, the employer shall be entitled to grant vacation time by 31 March of the next year;
              • If annual leave duration cannot be granted in the year in which it is due for reasons within the employee’s control, it shall be allocated within sixty days after the cause is remedied. 

       

      Additional Annual Leave – Employees in special circumstances receive additional leave as follows:

                  • Employees under 18 are entitled to 5 extra days of vacation each year;
                  • Employees are entitled to extra vacation time for children under the age of 16: 2 days a year for one child, 4 days a year for two children, and 7 days a year for more than two children, and an additional 2 days per child if the child is disabled.
                  • Employees permanently working underground or spending at least 3 hours a day on a job exposed to ionizing radiation are entitled to 5 extra days of vacation each year; and
                  • Employees receiving disabled or blind benefits and employees with at least 50 percent disability are entitled to 5 additional days of vacation each year.

      A collective bargaining agreement or an employment contract may provide additional leave days.

       

      Termination Pay – Upon termination of employment, an employee shall be compensated for any vacation time not previously granted as due. An employee whose employment is concluded or terminated is entitled to an adequate or proportionate amount of vacation in such a year. Any fraction of a day that comes to half a day shall count as a full working day. 

       

      Accrual and Carry Forward of Annual Leave – Annual leave time shall be considered allocated during the year when it is due, provided that it begins during that year and the portion allocated in the following year does not exceed 5 working days. 

       

      Minimum and Maximum Annual Leave Entitlement – Days taken at once cannot exceed 24 working days. Employees must take 12 or more working days at once as their main holiday.

       

      Annual Leave Coinciding with Stat Holiday – Public Holiday is not counted as part of annual leave. Working days shall include any duration of exemption from work as scheduled, paid leave, maternity leave, the first 6 months of leave of absence without pay for caring for a child, incapacity up to 30 days per calendar year, leave of absence without pay taken up to 3 months for the purpose of actual reserve military service, the duration of other exemption from work. Labor Code, Act I of 2012 (as amended), §§ 115 – 125.

      Special Leave

      Sick Leave

      Duration of Sick Leave: An employee is entitled to 15 working days of sick leave per calendar year. 

       

      Sick leave must be granted as per the working schedule. When applying unequal working time schedules, if the time that can be accounted for as sick leave is shorter than the daily working time according to the schedule, the full daily working time according to the schedule must be accounted for as sick leave.

       

      The employer is obliged to grant 7 working days of leave per year – except the first three months of the employment relationship – in a maximum of two installments at a time corresponding to the employee’s request. The employee must notify his request for this at least fifteen days before the start of the leave.

       

      Eligibility of Sick Leave: 

          • An employee is eligible for sick leave whose employment status is regulated by the Hungarian Labour Code (Munka Törvénykönyve). 
          • If the employment status began during the year, the patient is eligible for a proportionate part of sick leave. 

        Sick Leave Pay: The employee receives 70% of the wages by the employer for the 15­ day sick leave. An employee is entitled to statutory sickness benefits only, subject to the provision of a medical certificate and other statutory requirements when illness is beyond the 15th day of sickness. It is paid by Statutory Sickness Insurance.

        Medical Certificate: An employee is required to provide a medical certificate for the absence of illness. Labor Code, Act I of 2012 (as amended), §§ 118, 126 146.

         

        Maternity Leave

        A pregnant employee is entitled to an unpaid leave of 24 weeks of which the employee is obliged to take 2 weeks, commencing four weeks prior to childbirth. Maternity is also granted to employees who have to take care of the child, due to the death of the mother. The maternity leave terminates:

                • If the child is stillborn;
                • On the 15th day after the death if the child dies during maternity leave; or
                • The day following the day when the child is transferred to a welfare institution for over 30 days.

        In the circumstances stipulated above, the duration of the maternity leave cannot be less than six weeks following the birth.

         

        Maternity leave is also granted to a parent who cares for a child on the basis of an enforceable court judgment or an enforceable guardianship decision due to the mother’s state of health or death.

         

        If the child is cared for in an institution for premature infants, the unused part of the maternity leave may be taken up to 1 year after the birth even after the child has been released from the institution.

         

        Employees shall be entitled to unpaid leave at the times requested for the purpose of taking care of their child until the child reaches the age of 3. Employees shall be entitled to unpaid leave for providing care for a child in person until the child reaches the age of 10, during the period of receiving a child-care allowance. The relative of an employee shall be entitled to unpaid leave for the duration of the care, but for a maximum of two years, for the purpose of long-term personal care, which is expected to exceed thirty days.

         

        Breast Feeding Breaks – Mothers are entitled to pay one hour’s leave twice per day (or two hours twice per day in the case of twins) during the first six months of breastfeeding and thereafter paid one hour per day (two hours in the case of twins) until the end of the ninth month after the birth. Labor Code, Act I of 2012 (as amended), §§ 127­ – 13.

         

        Paternity Leave

        A male employee is entitled to paid paternity leave (birth or adoption) to care for a child for up to 2 weeks (10 working days). The amount of paternity leave is a total of ten working days even in the case of the birth of twins. The employee is also entitled to paternity leave if his child is stillborn or dies.

        It can be taken no later than the end of the second month following the birth of his child or, in the case of adoption, no later than the end of the second month following the decision authorizing the adoption to become final.

        Pay: An employee is entitled to the following pay :

                • From day 1 to 5: 100% of their regular wage.
                • From day 6 to 10: 40% of their regular wage.

        Labor Code, Act I of 2012 (as amended), §§ 118(4) 128 and 130.

        Parental Leave

        The employee is entitled to take up to 44 working days of parental leave for each child until they reach 3 years of age. An employee shall be eligible for parental leave only when they have been employed for at least one year. Both parents are individually entitled to parental leave for each child.

        For instance, if a couple is raising a one-year-old and a two-and-a-half-year-old child and both have been employed for at least one year, each parent is eligible for 44 working days of parental leave for each child.

        An employee can decide when they want to avail their leaves and must submit a request at least 15 days before the intended start date to their employer. In case the employment relationship ends before the child turns three, the employer will provide a certificate stating the number of parental leave days used by the employee for each child. Any unused days cannot be converted into monetary compensation and will not carry over beyond the child’s third birthday.

        Pay: An employee is entitled to receive pay at a rate of 10% of their regular salary.

        Flexible working arrangements: Parents of children aged up to 8 years and caregivers with a service period of at least 6 months are eligible to make requests for flexible working arrangements. These arrangements may involve changes in the workplace, working hours, telecommuting, or part-time work.

        Employers are required to consider these requests without discrimination and must provide objective justifications for their decisions. In some cases, the court may also be involved to seek the employer’s consent for the requested flexible working conditions. Labor Code, Act I of 2012 (as amended), §§ 118 A.

        Adoption Leave

        Maternity leave shall also be provided to a woman who has been given custody of a child for the purpose of adoption. The duration is 24 weeks of unpaid leave. Labor Code, Act I of 2012 (as amended), §§ 127(2).

         

        Other Leave

        Employees are relieved from the obligation to work in the following circumstances:

                • Upon the death of a close relative, for at least 2 paid working days per occurrence;
                • If the employee is incapable of working due to illness
                • For the duration of compulsory medical examinations (including pregnancy tests) with pay;
                • For the duration of service as a volunteer firefighter;
                • For the duration of absence to donate blood (minimum 4 hours) with pay;
                • If the employee is unable to appear at work for personal or family reasons or due to circumstances beyond the employee’s control;
                • In order to prepare for the adoption of a child (meeting the child in person) – a maximum of 10 working days per year. 
                • for the purpose of providing personal care to a relative in need of care due to serious health reasons, or to a person living in the same household as the employee – 5 working days per year.
                • For the duration of classes if employees are pursuing elementary school studies or for the duration of training if participating by agreement with the employer with pay;
                • For the duration required to attend any calling from the court or authority;
                • For the duration of treatment related to a human reproduction procedure;
                • For any other reason specified by the regulations.

        The employee must inform the employer of the use of any leave at least five working days in advance. Labor Code, Act I of 2012 (as amended), §§ 55.

         

        Unpaid Leave

        An employee is entitled to unpaid leave:

                    • For any extended (more than 30 days) nursing or home care of a close relative up to a maximum of two years provided the employee personally provides the care; and
                    • For the duration of actual reserve military service.

        The employee is obliged to notify the use of unpaid leave in writing at least fifteen days in advance. Labor Code, Act I of 2012 (as amended), §§ 131 – 132.

        Disclaimer: The material provided above is for informational purposes only and is subject to change. We endeavor to keep all material up-to-date and correct but make no representations about the information's completeness, accuracy, or reliability. Laws vary by jurisdiction and are subject to change and interpretation based on individual factors that may differ between organizations. The material is not meant to constitute legal advice and we suggest you seek the advice of legal counsel in connection with any of the information presented.