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Training Grant will also be Available for Job Keeping

Training Grant will also be Available for Job Keeping

Hungary
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In response to the new trends in the labour market, the rules on training grant financed from the Hungarian National Employment Fund are changing in 2020. Favorable amendments will make the process of applying for and using this grant more flexible and as a new option, grant may also be applied for job keeping purposes.

The new basis of the concept of the training grant is laid down in the new Vocational Training Act and in the governmental decree implementing the Vocational Act. Training grant is a non-refundable grant that can be used for external and internal training within a company. The grant may be up to 50% of the eligible costs (e.g. staff costs of trainers and trainees, administrative costs, travel expenses and accommodation), which may in some cases be increased to 70%. The maximum grant amount is EUR 4,000 per person participating in the training and EUR 2 million per beneficiary and training program.

The major change between the former and the new regulations is that the company may choose between the job creation or job keeping goals. In case of job keeping, it is important to ensure that workers get training on new technologies in their respective professional fields and that the number of employees does not fall below the average statistical number of employees before the grant application. The employer is required to maintain the number of employees (including job creation and keeping) for 18 months after the completion of the training.

Further guidance on the training grant will be available on the website of the Ministry of Innovation and Technology shortly.

By Adrienn Megyesi, Attorney at lawKCG 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.
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Firm's website: http://www.kcgpartners.com