As of January 1, 2023, the Hungarian Labor Code (Mt.) implemented two key EU directives that primarily focus on improving the work-life balance and creating more transparent and predictable working conditions against Abuse of Rights.
The legislator, in expanding the objectives outlined by the EU, also amended the rules of evidence for abuse of rights. These changes apply to cases where parties formally exercise a right, but do so in a manner that is not consistent with its intended purpose.
What constitutes abuse of rights?
Abuse of rights occurs when a party is entitled to take action, but exercises that right not in accordance with its intended purpose. Previously, employees could also refer to abuse of rights, but under the new rules, the burden of proof now falls on the employer.
Proving abuse of rights – What has changed?
From now on, the employer must prove that their otherwise lawful action was not triggered by a circumstance complained of by the employee. This imposes a greater burden on employers and may often lead to significant documentation challenges for them.
Termination of employment due to restructuring
Let’s take an example: the employer lawfully terminates an employee’s employment due to restructuring, but the employee believes that the real reason was a conflict with their supervisor. Under the new rules, the employee no longer has to prove that the true reason was the conflict, but rather the employer must demonstrate that the restructuring truly justified the termination and was not just used as an excuse.
Dismissal during probation period
During the probationary period, the employer is not required to provide a reason for termination, but if the employee believes that the reason behind the decision was their intention to have children, the employer must prove that the termination was not related to the employee’s family plans. Thus, although the employer is exempt from the obligation to provide a reason during the probationary period, they still need to properly document their decision and the true reason for it.
Bonuses and benefits for certain employee groups
If the employer introduces bonuses or special benefits available only to certain employees, and the conditions for a particular employee are not met, the employer must justify the selection process. The employee has the right to challenge the decision, and the employer must prove that they adhered to the principles of equal treatment, good faith, and fairness in making the decision.
Conclusion
As a result of the new regulations, employers must take on much greater responsibility and demonstrate that their actions are truly lawful and comply with the regulations. The changes lead to increased administrative burdens and require greater attention when making individual decisions. In all cases, it is advisable for employers to document their decisions, especially when employees claim abuse of rights.
The changes, therefore, not only provide better protection for employees but also encourage employers to make all decisions with the necessary care and proper documentation.
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Dr. Katona Géza, LL.M. ügyvéd (Rechtsanwalt / attorney at law)
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Katona és Társai Ügyvédi Társulás
(Katona & Partner Rechtsanwaltssozietät / Attorneys’ Association)
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
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