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The EU intends to implement a horizontal regulation on the qualification, recycling, and waste management of batteries (Battery Regulation) aiming to replace the existing Batteries Directive. Once the EU approves the Commission’s proposal, the new regulation will make the batteries more sustainable throughout their entire lifecycle, according to EU officials. Given Hungary’s significant role in battery production, we summarize the additional statutory obligations and consequences that could be imposed on battery producers.

In its recent judgment of 2 March 2023, the CJEU ruled on the concepts of daily and weekly rest period and their relation. The judgment fundamentally contradicts the approach reinforced in the Hungarian Labour Code this year; therefore the legislator has to change the concept of rest periods to comply with the EU Working Time Directive.

(In this article, we analyse the judgment 02/03/2023 - MÁV-START Case C-477/21)

From 1 January 2028, e-invoices will be mandatory for cross-border supplies of goods or services. with corresponding ‘near-real time’ reporting. The current maximum issuance requirement of 45 days post-taxable event is proposed to be shortened to just two days.

The procedural rules applicable to the registration of companies in Hungary have been largely unchanged since the entry into force of the present Company Act of 2006 (Act V of 2006 on Public Company Information, Company Registration and Winding-up Proceedings). Now, these long-established practices are about to change, as a new Company Act (Act XCII of 2021 on the Registration of Legal Persons and the Registration Procedure) is being introduced by the legislator.

In The Debrief, our Practice Leaders across CEE share updates on recent and upcoming legislation, consider the impact of recent court decisions, showcase landmark projects, and stay up to date with the latest developments impacting their respective practice areas. 

In a recently published judgment, the Curia ruled that a private e-mail address containing the full name of a natural person qualifies as personal data. However, the unlawful processing of personal data does not automatically constitute a violation of the right to the protection of personal data in the absence of other elements.

Schoenherr, working alongside Linklaters and Paul Weiss Rifkind Wharton & Garrison, has advised the Carrier Global Corporation on its acquisition of Viessmann Climate Solutions. Hengeler Mueller and, reportedly, Davis Polk & Wardwell advised Viessmann Climate Solutions.

On 28 March 2023, the Curia established that certain provisions of the municipality decree of the 18th District of Budapest on local taxes are contrary to other legislation, and therefore annulled the provisions on air passenger tax with retroactive effect to 1 January 2023.

Under a law passed by Parliament yesterday, all companies with more than 50 employees will be obliged to have a whistleblowing system in place from December. Employers with 250 employees cannot wait any longer, as they will have 60 days to implement the system. The question is, of course, whether companies will see the regulation as another unnecessary administrative burden or whether it will trigger an avalanche of internal investigations.

What does the new whistleblowing system entail?

In line with Directive (EU) 2019/1937 of the European Parliament and of the Council on the protection of persons who report breaches of Union law, the Hungarian Parliament adopted a new law on complaints, whistleblowing and rules for reporting breaches, which replaces previous legislation. Below we have summarized the key points of the new rules. This information has been prepared for private sector actors.

The EU’s headline target for its Member States is to have a climate-neutral economy by the year 2050. To reach this goal, the European Commission have called on Member States to prepare their National Energy and Climate Plans (“NECPs”) as the first mandatory step towards the Energy Union.

Non-competition agreements are popular for protecting the employer’s economic interest in Hungary. While employers try to secure their businesses as much as possible by stipulating excessive restrictions in the non-compete clauses, it is not always the right tactic, as shown by a recent decision of a Hungarian appellate court. The analysis of this decision provides a perfect opportunity to see how not to fall into the pitfall of an invalid non-competition agreement in Hungary.

The specific connection procedure of power plants based on the requests of 2 May 2022 has been amended again, as a result of which deadlines set for authorized network operators are also amended. According to the government decree published on 29 March 2023, the new deadline to provide the technical and economic conditions for industrial-size power plants and electricity storage facilities as well as for all investments with a connection needed to a medium voltage network is 10 May 2023, while for the rest of the power plant investments it is 30 June 2023.

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. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

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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