The Three Most Important Changes Introduced By The New Hungarian Labour Code Effective As Of 1 July 2012

A new Labour Code will enter into force in Hungary on 1 July 2012. The New Labour Code is much less employee-friendly than the current legislation. Below, we summarise the three most important changes the new Labour Code will bring about.

Consequences of unlawful termination by an employer

After 1 July 2012, if the employee claims that the termination of his or her employment was unlawful, the main rule will be that the employer will have to pay damages. Currently, the main rule is that the employer must reinstate the employee in his/her original position.

The new Labour Code also contains a certain limit on the amount of the damages that an employer may be required to pay as compensation for lost salary. This limit is set at 12 times the monthly "absence pay" of the employee. Currently, the employee is entitled to claim the lost salary until the court judgement establishing that the termination was unlawful becomes final and binding (a process that might even