EMCC European Monitoring Centre on Change

Hungary: Obligation to consider alternatives to collective dismissals

Hungary
Phase: Management
Type:
Obligation to consider alternatives to collective dismissals
Last modified: 17 September, 2017
Native name:

2012. évi I. törvény a Munka Törvénykönyvéről

English name:

Act I of 2012 on the Labour Code

Article

40, Section 72

Description

The employer, if planning to carry out collective dismissals, shall initiate consultations with the works council. Collective dismissals are defined as those affecting at least 10 workers in companies with 21-99 employees, affecting 10% of workers in companies with 100-299 employees, and at least 30 workers in companies with 300 or more employees.

The employer’s obligation to consult the works council shall apply until the conclusion of an agreement, or failing this 15 days after the beginning of negotiations.

In order to reach an agreement between the employer and works council, the negotiations shall, at least, cover:

  • the possible ways and means of avoiding collective redundancies;
  • the principles of redundancies;
  • the means of mitigating the consequences; and
  • the reduction of the number of employees affected.

Comments

The use of this part of the legislation is not a common practice. It is a bit like mediation. Employers usually use just what is compulsory according to the law. 

Cost covered by
Not applicable
Involved actors other than national government
  • Works council
Thresholds
21
10
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