What are the standard working hours in Hungary?

In Hungary, the standard working day is 8 hours. However, employers and employees can agree to a shorter daily or weekly working time if they choose.

Is overtime governed by law in Hungary? If so, what are the specifics outlined by law?

Overtime in Hungary is regulated by law with the following specifics:

• Daily working hours cannot exceed 12 hours, and weekly hours cannot exceed 48 hours.
• Employers can order up to 250 hours of overtime per year, with an additional 150 hours allowed via a written agreement between the employer and the employee.
• Overtime encompasses any work beyond regular hours, outside working time banking, beyond the weekly limit during a payroll period, and on-call duty.
• Overtime is only allowed in exceptional cases, and on public holidays only if the employee usually works on those days or to address urgent risks.
• Overtime is applied proportionally for employment that starts mid-year, fixed-term employment agreements, and part-time jobs.

These provisions are re-emphasized in our Handbook, which defines overtime similarly and underscores its proportional application based on the nature and timing of the employment.

How is overtime payment calculated in Hungary?

Overtime payment in Hungary is calculated as follows:

• Overtime is compensated with a 50% wage allowance.
• Overtime performed on a rest day is compensated either at 100% or at 50% if another rest day is provided.
• Overtime work on national holidays is compensated with a 100% allowance in addition to the normal work payment.

How is the time off in lieu payment calculated in Hungary?

In Hungary, time off in lieu payment is calculated based on the following principles:

• Employees are entitled to a 50% wage allowance for work performed in excess of the daily working time.
• If the work is performed on a rest day, the entitlement increases to a 100% wage allowance.
• An agreement between the employer and the employee may include the provision of time off in lieu of a wage allowance. For work performed on a rest day, this agreement includes a 50% wage supplement.

What are the eligibility rules for time off in lieu in Hungary?

In Hungary, the eligibility rules for time off in lieu are as follows:

• Employees are entitled to a 50% wage allowance for work performed in excess of the daily working time.
• If the work is performed on a rest day, employees are entitled to a 100% wage allowance.
• An agreement between the parties may stipulate the provision of time off in lieu of a wage allowance.
• In the case of work performed on a rest day, the agreement must also include a 50% wage supplement.

These rules ensure that employees are fairly compensated for overtime and have the option to negotiate equivalent time off instead of receiving wage compensation.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Hungary?

In Hungary, the employment agreement should be signed, and the necessary questionnaires completed, at least 3 business days before the actual start date for payroll purposes.

Can employment agreements be backdated in Hungary?

In Hungary, backdating employment agreements is not advisable. Employment agreements must be formally documented in writing. It is strongly recommended to finalize the written agreement promptly, ideally within 30 days from the start date.