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Do Not Act out of Habit - the New Provisions on Probation Period

Do Not Act out of Habit - the New Provisions on Probation Period

Hungary
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Although probation may be one of the most well-known legal institutes of the Labour Code and is a standard element of the employment agreements, the latest amendment of the Labour Code will make the parties pay more attention to their related statements.

As of 1 January 2023, the general rule on the duration of the probation period (3 - months or – in the case of a collective bargaining agreement - 6 months) has been amended and it must be established proportionally, if an employment agreement is concluded for a fixed period, with a maximum of twelve months. In the case of renewal of a fixed-term employment agreement or its re-establishment within six months of its termination, no probation period can be included in the agreement if the employee is employed in the same or similar position as previously as in such case probation period would not serve its true purpose.

The general rule that no reasoning is required for the termination handed over during the probation period is no longer true as the employee is entitled to request reasoning in 15 days – and the employer must respond in also 15 days – if the employee is of the opinion that the real reason for the termination was the use of so-called carer's leave, paternity leave, parental leave or unpaid leave to care for a child. The Labour Code lists two other cases as well, however, as the employee is not entitled to request those in the first six months of the employment relationship, those are only applicable if it is explicitly stated in the collective bargaining agreement or other internal regulations.

It is also important that the new rules also make some specific concessions on delivery, namely, the notice of termination with immediate effect during the probation period is still timely if it is posted on the last day of the probation period. If the employee requests reasoning, as set out above, the 15-day deadline for doing so is deemed to have been met even if the request is posted on the last day of the probation period and the same applies to the employer's 15-day deadline for responding.

Based on the above, the conclusion is that transposing the EU directives 2019/1152 and 2019/1158 has made the working conditions in Hungary more transparent and predictable and made a step forward to achieving better work-life balance.

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.
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  • 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