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The Tightened Rules of the Occupational Health and Safety Fines

The Tightened Rules of the Occupational Health and Safety Fines

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In order to promote the health of employees and prevent workplace accidents, the Hungarian Government had significantly increased the fines for the breach of occupational health and safety rules as of 1 March 2024. The rule on its amount was removed from the applicable act and its details were laid down in a government decree.

The lower limit of the fines is doubled, (HUF 100,000 per employee) and the upper limit is increased to 10 times the current level, HUF 100 million. The imposed amount depends on various factors such as number of norm violations, the duration of exposure, or the occurrence of occupational accidents or health damage. For example, in the case of an occupational accident or health damage, the fine increases threefold, in the case of a serious occupational accident, tenfold, and twentyfold in the case of a fatal occupational accident.

If the authority has imposed a fine against the employer once within the 3 year period (previously it was two years) prior to the official inspection due to a serious risk, the new fine shall be increased by 1.5 times. As a new rule, in the case of any further fines imposed within three years, the multiplier used for the most recent violation is doubled for each fine.

There are also circumstances that reduce the amount of the fine, thus if the violation is committed by a micro-and small enterprise or a natural person employer, it shall be reduced by 0.8 times and can reach a maximum of HUF 25 million, and in case the violation is committed by a medium-sized employer, it shall be reduced by 0.9 times, and may not exceed HUF 50 million. These rules do not apply if a fatal work accident occurred due to the employer's negligence.

By Borbala Maglai, Attorney at Law, 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