New Law Clarifies Definition of Employee with Decreased Working Abilities

New Legislation Enacted

Author: Zoltán Csernus, Partner — VJT & Partners Law Firm

A new amendment of the Hungarian Labour Code defines the term “employee with decreased working abilities” by enumerating four different characteristics. Each characteristic, on its own, qualifies the employee as a person with decreased working abilities. The new law clarifies the term, which was already being used, but without a clear legal definition.

Shorter Deadline to Challenge Presumption as of January 1, 2018

New Legislation Enacted

Author: Zoltán Csernus, Partner — VJT & Partners Law Firm

If a document (e.g. termination notice) was sent to a party (e.g. employee) and the receipt is based on statutory presumption, such party may challenge the presumption of lawful delivery only within three months (instead of the present six months) from the date of the presumption. This change will be effective as of January 1, 2018.

Supreme Court’s Decision on Severance Payment

Precedential Decision by Judiciary or Regulatory Agency

Author: Zoltán Csernus, Partner — VJT & Partners Law Firm

Under Hungarian Labor Law, the employee is not entitled to severance payment if the cause of termination relates to his/her behaviour or non-health related ability. In the given case, the parties agreed severance payment for every case of employment termination, i.e., they deviated from the law for the employee’s benefit, which is allowed under the law. When the employment was terminated due to the gross misconduct of the employee, the Supreme Court ruled that in such case the employee is not entitled to severance payment despite said agreement.

December 24 Will Not Be a Public Holiday in Hungary

Proposed Bill or Initiative

Author: Zoltán Csernus, Partner — VJT & Partners Law Firm

The government rejected the initiative to declare December 24 (Christmas Eve) as a public holiday as the supporters of the initiative failed to collect the necessary amount of signatures of Hungarian citizens to commence a public referendum about the new public holiday.