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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

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com