Here are some major rules of employment in Hungary, followed by an example of an employment contract and a table about costs.

:: An employment is established by signing an employment contract.

:: The employment - in default of a differing agreement - will be established for full-time employment and for an indefinite period.

:: The Parties (employer and employee) may agree in all questions in the employment contract, but the contract may only disagree the Labour Code or the collective agreement in the case of determining more favourable conditions for the employee.

:: The Parties must record the amount of the personal basic payment, the position and the place of work of the employee in the employment contract. The employment contract must include the names of the Parties and other relevant data.

:: Within 30 days after signing the employment contract, the employer must inform the employee about:

a) The rules of work
b) The other components of the payment
c) The day of payment
d) The date of the first working day
e) The rules and extent of annual leave
f) The rules and extent of termination notice period
g) The existence or non-existence of a collective agreement

:: It is possible to determine a probation period, which is normally 30 days, but maximum 90 days. During the probation, either Party may terminate the employment with immediate effect without stating reasons therefore.

:: The employment contract may only be amended with the Parties- mutual agreement.

:: The employment for an indefinite period may be terminated by a notice. The employer has to reason its notice.

:: A full working time is 8 hours a day, 40 hours a week. If the daily working time extends 6 hours, the employee is entitled to a 20-minute break. The employee is entitled to 2 days of rest a week, where one day should be a Sunday.

:: The Employee shall be entitled to annual leave, which is composed of basic leave and additional leave, as defined in the Labour Code, for every full calendar year spent with the Employer.

:: If the Employee is not employed throughout the calendar year, he or she shall be entitled to a proportional part of the basic leave. The extent of basic leave depends on the age of the employee (21-30 days), and the number of children (plus 2-7 days). The employer decides the date of the leave, but the employee shall be entitled to take one quarter of his or her leave at the date set by him or her.

:: The employee has 15 days sick leave a year, where he or she is entitled to 80 % of his or her payment.

:: The payment shall be paid in Hungarian Forint, and shall be due by the 10th day of the month following the subject month. If the 10th day of the month is in the weekend or on a public holiday the monthly payment is due on the previous workday.

:: The Labour Code and the laws of Hungary as in force shall govern any other issue not regulated in the employment contract.

Downloads

:: Employment Contract (.doc, 38,5KB)
:: Taxes, Social Security and Salary Costs (.doc, 75KB)