Business start-ups and terminations reflect the recovery of the Hungarian economy after the downturn following the outbreak of the coronavirus epidemic. In the second quarter of last year, when the epidemic hit the country, only 5,041 companies were set up. Meanwhile, in the last three months of last year, the number was close to 9,000 and in the first quarter of this year it has already exceeded 9,000, as we discussed in a recent joint webinar with OPTEN.
Hungary: European Data Protection Supervisor - Guidance on Return to the Workplace and EUIs’ Screening of Covid Immunity or Infection Status
The European Data Protection Supervisor (“EDPS”) has issued a guidance document entitled “Return to the Workplace and EUI’s (European Institutions, Agencies and Bodies) screening of Covid immunity or infection status” (the “Guidance”).
Solar and Renewable Energy Sector to Benefit From Residential Solar Tender for Hungary
The draft of a huge EU solar tender for the residential sector was published by the Hungarian Government at the end of August 2021. The draft proposal shows that households earning less than the national average income will be eligible for 100% non-repayable grants of between HUF 3-11.5 million (EUR 8,500 – 31,500) for green investment purposes.
Curia’s Unity Decision on the Transfer of Contracts
The Curia has made a legal uniformity resolution no. 7/2021 PJE on the enforcement of the rules of contract transfer. The resolution has been trying to put an end to the issues of contract transfer, especially in the case of agricultural leases. The previous legal practice was based on the interpretation that the contract shall be deemed to be a new contract in respect of all rights and obligations transferred.
Changing Company Rules in the Hungarian Civil Code
With respect to the evaluation of the success of the incorporation of certain provisions of the Hungarian Civil Code in the practice and the regulatory proposals developed by the case law, the amendment of the Civil Code has become necessary, therefore, at the end of June 2021, an act amending the Hungarian Civil Code has been published.
New Synthetic Securitisation Instrument is Approved by the European Commission
The European Commission approved the creation of a new synthetic securitisation product under the EU State aid regulation. The new product is in the form of guarantees on synthetic securitisation tranches to help companies affected by the COVID-19 outbreak in the 22 participating Member States (i.e. Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Lithuania, Luxemburg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain and Sweden). The product is under the European Guarantee Fund and managed by the European Investment Bank Group (EIB Group). The dedicated budget is EUR 1.4 billion, however, it is expected to mobilise at least EUR 13 billion of new lending to companies affected by the COVID-19 outbreak.
New Hungarian Government Decree on Patent Protection: Encouragement of Patents Vs. Threat of Compulsory Licensing
In response to the ongoing COVID-19 pandemic, on 6 August 2021 the Hungarian Government issued Decree No. 474/2021 on the different application of the Patent Act (Act XXXIII of 1995). According to the decree, patent applications filed after the entry into force of this decree will not be subject to a maintenance fee for the first three years of patent protection. The decree was promulgated on 6 August 2021 and will remain in force until the end of the state of emergency related to COVID-19.
UBO Register in Hungary: An Interview with Alexandra Bognar of Schoenherr
In a recent article for CEE Legal Matters, Schoenherr Attorney at Law Alexandra Bognar wrote that Hungary adopted a UBO Register Act this year. We spoke to Bognar to learn more about the new piece of legislation.
Results of the First Accelerated Sectoral Inquiry on the Hungarian Brick Market
The Hungarian Competition Authority (HCA) published its draft report of an accelerated sector inquiry on the Hungarian brick market. The interested and affected parties have only 8 days to submit comments to the authority's draft report. As a main finding, the HCA has not found reasons to conduct an antitrust proceeding on the relevant market. It has, however, made recommendations for consumers and also for the government.
Hungary: Verifying COVID-19 Immunity – Data Protection Considerations
In Hungary, immunity to COVID-19 may be verified on the basis of Government Decree 60/2021 by way of an immunity certificate or the mobile app of the National eHealth Infrastructure (EESZT). While in principle both methods may establish immunity based on either vaccination or recovery from the illness, only the immunity certificate has been available for use since February 2021, as the EESZT mobile app is currently still in its introductory phase.
The Buzz in Hungary: Interview with Kinga Hetenyi of Schoenherr
Even with the summer holidays firmly established in Hungary, the country is seeing activity across the board and a couple of interesting legislative updates stand to improve the landscape even further, according to Schoenherr Managing Partner Kinga Hetenyi.
Deal Expanded: Interview with DLA Piper on 2020 DOTY for Hungary
DLA Piper’s Andras Nemescsoi and Gabor Molnar Talk About The Deal of the Year in Hungary.
Remote Working vs. Home Office in Hungary
Legislation concerning remote work is once again in the spotlight, as Government Decree 487/2020. (XI. 11.) on the application of teleworking rules during the state of emergency modified the provisions of telework as of 3 July 2021. According to the Decree, home office should be considered as remote work during the state of emergency and the provisions of the Decree are applicable instead of the provisions of the Labour Code on remote work.
A “Special” Employee Stock Ownership Plan has been Introduced
The provisions creating the legal framework of the Special Employee Stock Ownership Plan (“Special ESOP”) entered into force on 13 July 2021, providing a new special ownership opportunity for employees or board members of limited companies to acquire stocks at a more favourable rate than before.
The Minimum Wage of the EU Country to Be Paid to Expat Employees
According to a decision of the Court of Justice of the European Union made on 8 July 2021, Hungarian employees can make claims before the Hungarian courts against their Hungarian-based employer for breaching the minimum wage rules of the Member States where they are posted.
Restrictions on the Export of Building Materials
At the beginning of July 2021, a new Government Decree (402/2021. (VII. 8.)) entered into force on the registration procedure of raw materials and products with strategic importance for the security of supply in construction and on other measures. The aim is to control the purchase and export of certain building materials abroad from Hungary. It applies to building materials which are intended to be exported or to be sold abroad from the territory of Hungary, for instance gravel, pebbles, crushed stone, portland cement, bauxite cement, cinder cement, fireproof cements, mortars, concretes, iron bars and wood, however, it is not applicable to building materials supplied in the framework of transit traffic.
Significant Minimum Wage Increase Expected in Hungary
HUF 200,000 might be the new general gross minimum wage from 2022 in Hungary. Informal consultation between the Government and the National Association of Entrepreneurs and Employers has already begun with regard to a new, long-term agreement on minimal wages. The official negotiation process should also be started by 15 September 2021.
Healthcare/Pharma/Life Sciences in Hungary
During the COVID-19 pandemic, the Healthcare/Pharma/Life Sciences sector has, not surprisingly, come into focus, with the production licencing and supply of vaccines and the ability of hospitals and healthcare facilities to operate and the production of healthcare products all attracting attention.