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New Act on Vocational Training from 1 January 2020

New Act on Vocational Training from 1 January 2020

Hungary
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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

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com