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Streamlined but Subtle: Proposed Legislation Set to Simplify Business Compliance

Hungary
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In a bid to enhance legal competitiveness, a new legislative proposal aims to streamline regulations in environmental protection, waste management, consumer rights and workplace safety, boosting the competitiveness of domestic businesses. The proposal is currently under public consultation, but it already highlights several key changes that may be of interest to various sectors.

Workplace safety: the range of professionals authorized to perform occupational health tasks would be expanded to include various specialized medical fields, such as occupational medicine and public health. Additionally, workplace risk assessments would be required every five years instead of three, unless otherwise necessary, easing the administrative burden related to workplace safety.

Consumer protection: the proposed amendment introduces a significant shift by setting a clear financial threshold for the obligation to employ a consumer protection officer, which was previously required without any revenue-based limits (for any business not classified as a small or medium enterprise (SME) under the SME Development Act). By establishing the threshold at HUF 5 billion, the change specifically targets larger businesses with significant market influence, thereby reducing the regulatory burden on smaller companies

Condominiums: the right of disposal over jointly owned property would automatically belong to the community, eliminating the need to include this in the founding documents. Moreover, new rules are introduced for summoning co-owners to meetings, allowing for acknowledgment receipts or postal notifications.

Electricity: the proposed amendment formally defines the concept of biomass processing and establishes the foundation for permit issuance, aligning with existing regulations.

Inheritance proceedings: notaries could satisfy their procedural fee claims from the heritage, with new rights to impose restrictions on the transfer and encumbrance of assets.

Waste management: activities such as the creation of educational and instructional items or gifts from waste, as well as the production of artistic works from waste, provided they are publicly displayed, would now require registration in the official waste management authority’s register. This ensures that such activities are regulated and monitored under proper waste management practices. The number of companies eligible to enter into individual agreements with the concession holder regarding specific waste management requirements would increase significantly, as the threshold for waste producers would be lowered from 50,000 tons per year to 5,000 tons per year.

Most of the amendments focus on fine-tuning existing regulations, offering targeted improvements such as more precise procedural requirements or updated thresholds, as seen in the waste management and consumer protection regulations. While these efforts support the broader goals of economic growth and environmental responsibility, the proposed changes do not introduce transformative measures that would dramatically reshape the legal landscape for businesses. Instead, they reflect a pragmatic approach to maintaining legal clarity and operational efficiency.

By Reka Fulop, Attorney at Law, KCG Partners

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.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • 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