Update On Rules Applicable To Executives

Hungarian law differentiates between general employees and executives. The biggest difference between the two is that many provisions of the Hungarian Labour Code which protect "ordinary" employees and restrict the kinds of agreements which can be made with them do not apply to executives. This means that the law is less protective and more flexible towards executives.

Executives can be subdivided in two different categories. The first consists of those who are actually on the top of the organization, i.e. the managing director and those direct subordinates entitled to substitute for said director should the director be absent. When substituting, the subordinate need not be authorized to exercise all rights of the managing director; it is sufficient if the subordinate is authorized to a limited degree, such as, for example, HR or procurement matters. If the company has several managing directors ("ügyvezető") or is led by a board of directors ("igazgatóság"), each