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.
The Corner Office: Childhood Dreams
In “The Corner Office” we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. The question this time: “What did you most want to be when you were little?”
ICC International Court of Arbitration Appoints Malgorzata Surdek-Janicka as Vice-President
CMS' Malgorzata Surdek-Janicka has been appointed as Vice-President of the International Court of Arbitration at the International Chamber of Commerce in Paris. Aside from Surdek-Janicka, 33 lawyers from CEE were appointed as members and alternate members of the court.
Material Compensation for Delay in Civil Proceedings from 1 January 2022
By ratifying the European Convention on Human Rights in 1992, Hungary has committed itself to ensure the right to a fair trial within a reasonable time and to guarantee the right to an effective remedy for any violation of this right. In its judgment in Gazso v. Hungary, the European Court of Human Rights called on Hungary to establish a domestic remedy capable to handle the structural deficiencies identified in the judgment. As a result, at the end of June 2021, a new Act on the Enforcement of Material Compensation for Delay in Civil Proceedings was published in the Hungarian Official Gazette, which will enter into force on 1 January 2022. The Act establishes a new legal remedy for compensation for fundamental rights violations, called ‘material compensation’ which is different from the general compensation (in Hungarian: “kartalanitas”), indemnification or non-pecuniary compensation (in Hungarian: “serelemdij”).
A Single Register of Legal Entities Is to Be Created in 2023
Currently, legal persons and organizational entities are registered by various courts and authorities: companies are registered by the court of registrations, civil organizations by the courts of law, while investment funds, for example, are registered by the Hungarian National Bank. The data content and operation of these registers also differ.
COVID Tax Measures Updated in Hungary
Latest tax reliefs aim to support tourism and travel industry in Hungary, as tourism was one of the most affected sectors by COVID pandemic. In order to boost the restart of domestic tourism, the latest governmental decree of 381/2021 introduced several new tax measures, mainly for this sector. As a result, tourism development contribution of 4% is still not payable by the end of 2021.
Not Even Loan Contracts Are Set In Stone
A common stereotype prevails that banking contracts are non-negotiable, and borrowers hardly have a say in the terms of their contracts. However, this is not the case: like any economic operator, banks are also willing to compromise. Banks’ flexibility varies depending on who and when is seeking preferential treatment and on the contractual terms subject to negotiations.
Hungary Bans Single Use Plastic Products
On 1 July 2021, a new Government decree enters into force in Hungary, prohibiting the placing on the market of certain single-use plastic products and products made from oxo-degradable plastic. The decree was published in Hungary's Official Gazette on 1 June.
36 Month-Long Working Time Frame is Not Unconstitutional
The constitutional court has rejected a motion against the amendment of the Hungarian Labour Code in 2018, however, it stated the Parliament’s legislative omission. In 2018 the Hungarian Parliament adopted an amendment to the Hungarian Labour Code that resulted in the extension of the maximum duration of the working timeframe in a collective agreement up to 36 months if it is justified by objective or technical reasons, or reasons related to work organisation.