As an overseas employer, it is crucial to be well-versed in local labor regulations to ensure your employees receive fair treatment. In Hungary, the procedures for employee termination and redundancy are governed by specific legal provisions. This article aims to introduce you to the relevant labor laws in Hungary to help you better understand and address these issues.
I. Employee Termination
1. Termination Procedure
In Hungary, employers must follow the procedures prescribed by labor law when terminating employees. Specifically, employers need to provide written notice to employees, stating the reasons for termination and the termination date. If the employee disagrees with the termination, they can appeal to the Labor Dispute Conciliation Board. During the appeal process, the employee retains the right to receive their wages and other benefits.
2. Termination Compensation
According to Hungarian labor laws, if an employee is terminated, they are entitled to certain termination compensation. The amount of this compensation depends on the duration of the employee's tenure with the company and the position held. In general, the longer an employee has worked for the company, the higher the termination compensation they will receive.
II. Employee Redundancy
1. Redundancy Procedure
In contrast to employee termination, employee redundancy in Hungary is managed by the government. According to Hungarian labor laws, if a company needs to make employees redundant for economic reasons, the employer must apply for a redundancy permit from the local government. During the application process, the employer needs to provide the government with the company's financial reports and other relevant documents.
2. Redundancy Compensation
If an employee is made redundant due to the company's economic reasons, they are entitled to certain redundancy compensation. Similar to termination compensation, the amount of redundancy compensation depends on the duration of the employee's tenure with the company and the position held. Generally, the longer an employee has worked for the company, the higher the redundancy compensation they will receive.
III. Conclusion
As an overseas employer, you need to familiarize yourself with local labor regulations and adhere to the prescribed procedures for employee termination and redundancy. In Hungary, the processes for employee termination and redundancy are governed by law, and employees have the right to receive certain termination or redundancy compensation. Therefore, when conducting employee termination or redundancy, you should ensure that the procedures are legal, fair, and provide employees with the compensation they are entitled to.