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Changes to the Labour Code: More Paternity, Parental and Carer Leave

Changes to the Labour Code: More Paternity, Parental and Carer Leave

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A proposal for the modification of the Labour Code was filed to the Hungarian Parliament on 2 November 2022. The bill aims to ensure compliance with the EU Directives No. 2019/1158 on work-life balance for parents and carers and No. 2019/1152 on transparent and predictable working conditions.

According to the new rules, fathers will be able to take 10 working days off after the birth of their child (instead of the 5-days paternity leave currently available for fathers). Fathers will be entitled to their absence fee for the first 5 days of the extended parental leave, and to 40% of their absence fee for the remaining period. Furthermore, employees will be entitled to 44 days of holiday until the age of 3 of their children. For this period, employees may receive 10% of their absence fee reduced with the family allowances they receive. A person who has a relative or a person living in the same household who needs care for serious health reasons may be exempted from the obligation to work for a maximum of 5 working days per year.

Parents with young children can request a change in their working conditions. In particular, they may request the employer to change their place of work and working schedules, teleworking or part-time employment until the age of 8 of their children. The employer must respond in writing to such requests within 15 days, and in case of refusal, it shall justify it. The justification shall fulfil the same criteria as in case of dismissal notices, and the lawfulness of the justification might be contested by the employees in a court procedure.

Employers will be obliged to provide more information to employees about their employment (e.g. it must inform the employees about the authority for which the employer pays the taxes and social contributions, and more information about the working schedule etc.) within shorter deadlines, i.e. within 7 days from the commencement of the employment or immediately in case of any change of circumstances.

According to the bill, the modifications will enter into force on 1 January 2023.

By Eszter Ila-Horvath, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

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The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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