Termination of labour contract

What

The end of the employment relationship with quitting the employment contract.

Who

Both side (employee or employer) can terminate the contract

How

• The employer has to justify it (the employee’s behaviour regarding to work, lack of ability, operational changes in the company).
• The employee doesn’t have to justify it just in the case of fixed-term contract (justification can be factors that cause unsustainability the employment relationship).
• Employees are protected during pregnancy, maternity leave, volunteer military service, unpaid holiday for nursing his/her sick child, reproductive treatment for women
• types of termination:
  • Common agreement: you can terminate the contract anytime
  • Dismission: one-sided dismission,
    • The basic notice period is 30 days, but it can be longer if the employee has been working there for more than three years.
    • Severance pay: the basic is one-month salary, but in can be more if the employee has been working there more than three years.
  • Immediate dismission: serious violation against the rules from the employee.

When

• With common agreement you can terminate the contract anytime.
• Immediate dismission: 15 days after the employee or the employer gets to know the reason what causes the termination of the contract.

Good to know

Generally, the Hungarian law protects the employee, so if an employee starts a legal procedure after the termination of the contract the employer needs to have strong arguments.

On these links you can find more information about terminating the contract:

• (in English): http://www.lawyershungary.com/dismissal-of-hungarian-employees
• (in English): http://www.doingbusiness.org/data/exploreeconomies/hungary/labor-market-regulation

For information in English about the Hungarian administration system (government offices, government windows, allowances, etc.) you can call the governmental helpline, what you can find under “Everyday life – Governmental helpline” on this link: http://hu.danubecompass.org/archives/situations/governmental-helpline. If you are calling from Hungary call this number: 1818, if you are calling from abroad call this number: +36 (1) 550-1858.

Where

If you think that your rights are violated by your employer you can announce a complaint to the county level office of the Labour Inspectorate (Munkaügyi Főfelügyelőség).

Budapest, Hungary