Significant changes in Hungarian labour law from 01 January 2023

Labour law is one of the key areas of expertise of our Legal Partnership, so the significant changes to the Labour Code that entered into force on 01 January 2023, which may require the revision of employment contracts or the revision of employer procedures and regulations, are of great importance to us. The following is a brief description of the most significant changes to help you understand the new labour law rules.

An EU directive has shortened the deadline for the mandatory orientation to be provided to employees relating to the employment relationship, employers now have to provide the mandatory orientation to employees within seven days from the start of the employment relationship. The content of the orientation is also extended from this year, the employee must now also be informed about the workplace, the start and duration of the employment relationship, the rules on termination of the employment relationship, the possible working hours schedule (days of the week, possible start and end times of the working day), the employer’s training policy, the length of time the employee can take part in training and the authority responsible for collecting public charges relating to the employment relationship.

Substantial changes have also been made regarding absence from work. The law introduces carer’s leave as a new legal institution, under which employees are exempted from the obligation to work for up to five working days a year to provide personal care for a relative or a person living in the same household who needs care for serious health reasons.

The period of paternity leave after the birth of a child has also been extended from five to ten days, but only 40% of the absence allowance is paid for the second half of the leave (from day 6). Additional parental leave has also been introduced allowing a total of forty-four days up to the age of three of the child, provided that the employment relationship has lasted for one year.

The prohibitions on dismissal have been extended by the newly introduced forms of absence from work, therefore employers cannot terminate employment during paternity, parental and carer’s leave.

The rules on probationary periods have also changed. No probationary period may be imposed on the renewal of a fixed-term employment contract or for employment in the same or a similar job within six months of the termination of the fixed-term employment contract. In the case of fixed-term employment contracts of a maximum duration of twelve months, the length of the probationary period is to be determined on a pro rata basis, e.g. if the fixed-term employment contract lasts for six months, the probationary period may not exceed one and a half months.


BALÁZS & KOVÁTSITS Legal Partnership