New Act on Vocational Training from 1 January 2020

New Act on Vocational Training from 1 January 2020

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A new act on vocational training entered into force on 1 January 2020.

The new law has reformed the contractual relationship between the employer and the trainee. Until now, the students had worked under the scope of an ‘apprenticeship contract’, while from now on it will be qualified as a ‘vocational employment contract’. An important change is that there will be a pay rise in the salary of student workers, since after January 2020 student wages will become adapted to the changed minimum wages.

Another novelty is that the student pursuing vocational training will be insured under the vocational employment contract, and the payment received on the basis of such contract will be qualified as an income for the purpose of social security contribution. It is important however that the previous practice relating to apprenticeship contracts for students still being under these contracts will not change, i.e. the social security status of a student under apprenticeship contract remains unchanged.

By Levente Csengery, Founding Partner, KCG Partners Law Firm