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36 Month-Long Working Time Frame is Not Unconstitutional

36 Month-Long Working Time Frame is Not Unconstitutional

Hungary
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The constitutional court has rejected a motion against the amendment of the Hungarian Labour Code in 2018, however, it stated the Parliament’s legislative omission. In 2018 the Hungarian Parliament adopted an amendment to the Hungarian Labour Code that resulted in the extension of the maximum duration of the working timeframe in a collective agreement up to 36 months if it is justified by objective or technical reasons, or reasons related to work organisation.

In its ruling issued on 27 May 2021, the Constitutional Court did not find unconstitutional the possibility of the application of a (maximum) 36-month long working timeframe. However, the Constitutional Court has delivered the following important remarks. On one hand, the Constitutional Court considered as a constitutional requirement that the average of the weekly rest period and the average of the extraordinary working time performed by the employee must be calculated on a one year long basis, even if the agreed working timeframe is longer than one year. On the other hand, the Court stated that the Hungarian Parliament had failed to adopt provisions that would guarantee that the employer, by terminating unilaterally the collective agreement, cannot escape its additional obligations for longer working timeframe under the collective agreement while enjoying its benefits.

According to the Constitutional Court’s decision, the Hungarian Parliament is obliged to fulfil its above mentioned obligations and repair its legislative omissions by 31 July 2021.

By Levente Csengery, Partner, 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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