Easily manage employment in Hungary

Employers in Hungary are usually required to provide a reason (in writing) to every employee being terminated. The reason must be clearly stated and factual.

Employers cannot terminate employment when an employee is on maternity leave, parental leave, leave for voluntary reserve military service, or in other cases protected by Hungarian law.

To terminate an employee in Hungary, the employer must provide advance notice of between 30-90 days. This period does not apply to employees on fixed-term contracts whose engagements end on the scheduled date specified in the agreement.

The base 30-day notice period for termination is extended based on the amount of time the employee has worked for the company:

• 5 additional days after three years of service
• 15 additional days after five years of service
• 20 additional days after eight years of service
• 25 additional days after 10 years of service
• 30 additional days after 15 years of service
• 40 additional days after 18 years of service
• 60 additional days after 20 years of service

Severance pay in Hungary ranges from one month’s pay to nine months’ pay depending on the tenure and age of the employee in question. Employment contracts should clarify expectations and procedures for severance pay to avoid misunderstandings. Employees are entitled to severance pay when they are terminated unilaterally by their employer, when the employer shuts down, and in certain situations involving acquisitions.

In Hungary, the maximum probation period is three months. After the probationary period ends, the employee is considered a full employee and entitled to all the protections of Hungarian labour law, even if no probationary period was specified in the employment contract.