Industrial action and disputes in Hungary

The Fundamental Law of Hungary of 25 April 2011 guarantees workers, employers and their organisations the right to collective bargaining and the right to take collective action to defend their interests, including the right to discontinue work (Article XVII, Section 2).

While industrial actions initiated by workers or their organisations are regulated in a fairly detailed way, especially strikes, the legislation is silent on the most obvious possible industrial action by employers: lockouts.

The right to strike is regulated by Act VII of 1989. The right to strike is guaranteed to individual workers in pursuit of their own demands, while the right to organise a solidarity strike is granted only to trade unions. As a basic rule, a strike can be called only after attempts to resolve conflicting interests have been made for at least seven days (Article 2).

There are some limitations regarding both possessing and exercising the right to strike. No right to strike is given to the staff of law enforcement agencies, armed forces or the judiciary. Civil servants working in public administration have the right to strike but may exercise it only according to the special regulations fixed in the agreement between the government and the relevant trade unions.

Act VII of 1989 lists the circumstances when strike action is unlawful (Article 3).

In the case of activities of fundamental public concern – in particular, mass transportation, telecommunications, electricity, water, gas and other energy supply – the right to strike may be exercised only to the extent that it does not impede the provision of services at a level deemed sufficient. The ‘sufficient level’ can be defined by an act of parliament (according to the amendments to Act VII in 2010 and 2012), which has already happened in some areas. These regulations strongly limit the right to strike in the certain public services.

Other forms of industrial action (other than strikes) are much more common in Hungary, such as protest meetings and protest rallies, demonstrations, petitions and collecting signatures. The first two are regulated by Act LV of 2018 on the right to assembly. This new law is more restrictive than its predecessor: demonstrations must be notified months in advance and the police are given relatively broad discretion about banning assemblies. Complaints and public interest disclosures (whistleblowing) were regulated by Act CLXV of 2013 until its replacement by the enhanced Act XXV of 2023. Petitions and the collection of signatures are regulated by Act CCXXXVIII of 2013 on referendums, European initiatives and the procedure of the referendum.

Developments in industrial action, 2013–2021

Note: n.a., not available.

Source: Hungarian Central Statistical Office, 2022.

Collective dispute resolution mechanisms

The collective dispute resolution mechanisms are regulated by the Labour Code (Act I of 2012, Articles 291–293).

It is important to note that the Labour Code uses the term ‘collective labour disputes’, which is interpreted as referring solely to collective interest disputes.

Depending on the parties in disagreement, the employer and the works council or the employer and the trade union may set up an ad hoc conciliation committee (egyeztető bizottság) to resolve their disputes (see also the section ‘Workplace-level employee representation’). The plant agreement or the collective agreement may contain provisions for a standing conciliation committee as well.

The conciliation committee is composed of an equal number of members delegated by the employer and by the works council or trade union, as well as an independent chairperson. The employer and the works council/trade union may agree in writing in advance to abide by the decision of the committee. In this case, the committee’s decision is binding. In the case of a tied vote, the chairperson’s vote is decisive.

Some collective disputes specified by the Labour Code (Article 236(4) and Article 263) should be decided by an arbitrator.

Since November 2016, it has been possible for the MTVSZ – as an alternative dispute resolution body – to be invited by the parties to the dispute to assist (through conciliation or mediation) or to arbitrate.

Individual dispute resolution mechanisms

According to the Labour Code (Article 285), the main individual dispute resolution bodies are the courts. Individual labour disputes are decided by specialised courts, namely the administrative and labour courts (which are at district court level, but operate only in the county seat towns). These courts provide for the first instance, while cases not settled are presented to the civil courts in the second instance.

Use of alternative dispute resolution mechanisms

The MTVSZ is responsible for collective, not individual, disputes. However, an explicit intention behind the establishment of the MTVSZ was to provide an opportunity to transform, if possible, individual disputes into collective disputes by consolidating several individual disputes around the same issue.

Use of dispute resolution mechanisms, 2014–2021

Notes: *The classification of labour dispute cases was significantly narrowed under changes enacted in Act I of 2017 on the Code of Administrative Court Procedure as of 1 January 2018, which reduced the number of employment disputes. ** Due to the abolishment of labour courts as of 31 March 2020, the numbers in 2020 are not comparable with the corresponding numbers of the previous and subsequent years. n.a., not available.

Source: National Judicial Office, 2022