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New Employment Provisions Arising from EU Directives

New Employment Provisions Arising from EU Directives

Hungary
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In 2019, two EU directives were adopted which must be transposed into Hungarian labour law within a short deadline. In order to comply with EU Directive 2019/1152 on transparent and predictable working conditions and EU Directive 2019/1158 on work-life balance for parents and carers, the modifications of the Labour Code should be adopted by the beginning of August 2022. According to the current information, no substantive work has been started by the Hungarian legislator to modify the Labour Code in order to ensure the compliance with the provisions of the EU Directives.

Directive 2019/1152 redefines the employer's obligation to provide information. The information should be more detailed and cover a wider range of circumstances. For example, more information must be given to the employees on the working time schedule and the method of ordering and paying overtime. The employees should receive the basic information on their employment relationship as soon as possible, but within 7 days at the latest from the start of their employment (the current Labour Code requires to inform the employees within 15 days from the start of employment). The written information required by the Directive can also be provided to the employees electronically. The Directive also contains other provisions not yet covered by the Hungarian Labour Code; for example, it requires that in the case of fixed-term employment, the probationary period must be proportionate to the length of the employment relationship.

The aim of Directive 2019/1158 is to promote equal opportunities between women and men by encouraging men to take on more caring responsibilities than before. Accordingly, the Directive provides for 10 working days of paternity leave, which can be taken at the birth of a child (according to the current provisions of the Labour Code, 5 days paternity leave is available for fathers). The workers who care for a relative should be entitled to at least 5 working days' leave per year. For the above leaves, it must be ensured that the employees receive remuneration. In addition, workers should be able to request flexible working arrangements until the age of 8 of their children. Flexible working arrangements can mean work reorganisation, such as teleworking, part-time work or flexible working hours.

By Eszter Ila-Horvath, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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