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Termination of Employment Relationships: the Legal Situation in Hungary

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Termination of Employment Relationships: the Legal Situation in Hungary Termination of Employment Relationships: The Legal Situation in Hungary Prof. Dr. György Kiss University of Pécs Faculty of Law Department of Labour Law 1 Table of contents Introduction .............................................................................................................. 4 (1) The legislative system of the Hungarian labour law............................................ 4 (2) The concept of the legislator and the trends of the legislation from the coming into force of Labour Code to the contemporary situation .................................... 8 1. Sources of labour law....................................................................................... 13 (1) Constitutional status of the rules on the right to work ...................................... 13 (2) International agreements and conventions ......................................................... 15 (2.1) Covenant on Economic, Social, and Cultural Rights ...................................... 15 (2.2) ILO Convention No. 158 (1982)...................................................................... 15 (2.3) Implementation of the Social Charter ............................................................. 17 (2.4) Influence of the Charter of Fundamental Rights of Workers and Community Charter of the Fundamental Social Rights of Workers............................................ 17 (2.5) Implementation of the Directives of the European Community ...................... 19 (3) Sources of law and their hierarchy ..................................................................... 20 (3.1) Hierarchy of the regulations and the rules of the collective agreement; application of the favourable rules to the employee ................................................ 20 (3.2) The role of the institutions of the collective labour law; implication of the rules of collective agreement to the legal system..................................................... 21 (3.3) Role of the Constitutional Court...................................................................... 24 (4) Role of the judge-made law and custom ............................................................ 24 2. Scope of the rules governing the termination of an employment relationship, special arrangements ....................................................................... 25 (1) Ways of terminating an employment relationship.............................................. 25 (2) Exceptions or specific requirements for certain employers or sectors ............... 25 (2.1) Specific arrangements of termination of fixed-term employment.................... 25 (2.2) Binding grounds for the termination of temporary employment ..................... 27 (3) Exceptions or specific requirements for certain types of contract...................... 29 (4) Exceptions or specific requirements for certain categories of empoyer............. 30 (5) Exceptions or specific requirements for certain categories of employees.......... 30 3.1. Mutual agreement ........................................................................................... 33 (1) Substantial conditions......................................................................................... 33 (2) Procedural requirements..................................................................................... 33 (3) Effects of the agreement ..................................................................................... 34 (4) Remendies .......................................................................................................... 34 (5) Vitiating factors .................................................................................................. 34 (6) Penalties.............................................................................................................. 35 (7) Collective agreements......................................................................................... 35 (8) Relations to other form of termination ............................................................... 35 3.2 Termination otherwise than at the wish of the parties ................................. 36 (1) Grounds for a contract to come to an early and by operating of law.................. 36 (1.1) The employee’s death ...................................................................................... 36 (1.2) The dissolution of the employer without legal successor ................................ 37 (1.3) Expiry of fixed-term contract........................................................................... 39 (1.4) Cessation of an employment in the case of change in legal status of an employee – the transfer from the personal scope of the Labour Code to that of Civil Servant Act or to the Public Servant Act......................................................... 40 (2) Procedural requirements..................................................................................... 42 (3) Effects of the existence of a ground ................................................................... 42 (3.1) The duties of the transfer and the transferee................................................... 42 2 (3.2) Freedom of choice of the employee concerning the transfer........................... 45 (3.3) The severance pay in the case of the expiry of the employment...................... 46 (4) Remedies ............................................................................................................ 46 (5) Penalties.............................................................................................................. 46 (6) Collective agreements......................................................................................... 46 3.3 Dismissal in Hungary: Overview .................................................................... 48 (3.3.1) Dismissal contrary to certain specified rights or civil liberties .................... 48 (3.3.2) Dismissal on ‘disciplinary’ grounds............................................................. 52 (1) Substantive conditions........................................................................................ 52 (2) Procedural requirements..................................................................................... 54 (2.1) Deadline of extraordinary dismissal ............................................................... 54 (2.2) Duty of justitication of employer’s dismissal .................................................. 55 (3) Effects of the dismissal....................................................................................... 55 (3.1) Effect of the employer’s dismissal ................................................................... 55 (3.2) Effect of the employee’s dismissal................................................................... 55 (4) Remedies ............................................................................................................ 56 (5) Suspension of the effects of the dismissal.......................................................... 56 (6) Restoration of employment ................................................................................ 56 (7) Penalties.............................................................................................................. 57 (8) Collective agreements......................................................................................... 57 (3.3.3) Dismissal at the initative of the employer for reasons related to the capacities or personal attributes of the employee, excluding those related to misconduct ............................................................................................................... 59 (1) Substantive conditions........................................................................................ 59 (2) Procedural requirements..................................................................................... 60 (3) Effect of the dismissal ........................................................................................ 62 (3.1) Notice period ................................................................................................... 62 (3.2) Relief of the employee from performing work ................................................. 62 (3.3) Severance pay.................................................................................................. 63 (4) Remedies ............................................................................................................ 65 (5) Suspension of the effects of the dismissal.......................................................... 65 (6) Replacement or reinstatement of employment ................................................... 65 (7) Legal consequences of an unfair or unlawful dismissal..................................... 68 (8) Collective agreement .......................................................................................... 69 (8.1) The role of the collective agreement in relation to the regulations of the dismissal................................................................................................................... 69 (8.2) The role of the agreement between the employer and the workers’ council in relation to the dismissal ........................................................................................... 70 (8.3) The trends of the judge-made law (analysis of the decisions)......................... 70 3.3.4. Dismissal based on economic reason............................................................. 72 (1)
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