What are protected periods and dismissal justification?
Under Hungary’s Labour Code, an employer that ends employment by dismissal with notice (felmondás) must give a reason, and during certain protected periods it cannot dismiss at all (felmondási tilalom). Together, these rules decide whether a dismissal is lawful.
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Under section 65 of the Labour Code, an employer cannot dismiss an employee with notice during:
- pregnancy;
- maternity, paternity or parental leave;
- unpaid leave to care for a child;
- active voluntary reserve military service;
- a woman’s treatment in an assisted reproduction procedure, for up to six months from its start;
- time off of up to five working days a year to personally care for a seriously ill relative or household member.
What counts is the date the dismissal is communicated. An employee can rely on pregnancy or assisted reproduction treatment only if they informed the employer. If they do so after receiving notice, the employer can withdraw the dismissal in writing within 15 days.
Giving reasons
An employer must justify every dismissal with notice, and the reason must be clear from the written justification. Lawful reasons relate to the employee’s conduct in the employment, their ability or the employer’s operations, and the employer has to prove that the reason is real and reasonable. Employees who are already pensioners can be dismissed without a reason.
Extra protection applies in the five years before the employee reaches retirement age: the employer can dismiss for conduct only on grounds that would justify immediate termination, and for ability or operational reasons only if there is no suitable vacancy or the employee turns one down. The same applies to mothers, and to fathers raising a child alone, until the child turns three, unless they are on maternity or unpaid childcare leave.
If a dismissal is unlawful
The employer must compensate the employee’s loss, with lost earnings capped at 12 months’ absence pay, and may also owe severance pay. The employee can instead claim the notice pay they would have received. At the employee’s request, a court reinstates them if the dismissal breached a protected period, equal treatment rules or the ban on abuse of rights, or if they were an employee representative.
Dismissal rules when you hire through an EOR
With TopSource as your Employer of Record in Hungary, we check protected periods and the age-based protections before any notice is served, and prepare a written justification that meets the Labour Code, so terminations are lawful and costed in advance.
Frequently asked questions
Can an employer dismiss a pregnant employee in Hungary?
Not with notice. Pregnancy is a protected period under section 65 of the Labour Code, provided the employee has informed the employer. An employer that learns of it after giving notice can withdraw the dismissal within 15 days.
Does a Hungarian employer have to give a reason for dismissal?
Yes. The reason must relate to the employee’s conduct, ability or the employer’s operations, be clear from the written notice, and be real and reasonable. The exception is an employee who is already a pensioner.
What happens if a dismissal in Hungary is unlawful?
The employer pays compensation for the loss, with lost earnings capped at 12 months’ absence pay. In some cases, such as a dismissal during a protected period, a court can reinstate the employee.
Related terms in Hungary
- Written Employment Information (Hungary)
- Fixed-Term Employment Limits (Hungary)
- Simplified Employment (Hungary)
- Overtime Cap (Hungary)
- Telework and Home Office Rules (Hungary)
- Additional Leave (Hungary)
- Termination by Mutual Agreement (Hungary)
- Non-Compete Agreement (Hungary)
- Works Council and Collective Agreements (Hungary)
- Guest Worker Permit and Single Permit (Hungary)
- Occupational Safety and Medical Aptitude Exam (Hungary)