Hungary’s system of administrative and labour courts will be replaced by a new administrative court dealing with public sector employment disputes from 1 January 2020. Private sector employment disputes will be handled by the general regional courts.

By: Marianna Csabai

Firm: CLV Partners

At the end of 2018, Act CXXX of 2018 (the ‘Act’) on the establishment of a new administrative court system was passed by the Hungarian Parliament. Under the Act, from the end of 2019, the current system of administrative and labour courts will be abolished and from 1 January 2020, administrative legal actions including those of employees working in the public sector will be heard by the newly established administrative courts. All other employment disputes will be dealt with by non-specialist regional courts, which also deal with other types of legal actions.

The new administrative courts will operate under the direction of a newly established Supreme Administrative Court and under the operative leadership of the Ministry of Justice. This means that the Minister of Justice will have a significant influence over issues such as the appointment of judges or the budget of the (administrative) courts.