Hungarian code cuts benefits

Unions have set out their objections to planned new labour code in Hungary, which will cut a wide range of employee benefits.

One of the key changes in the draft code, which is due to be debated in parliament in the autumn, is a cut in redundancy compensation.

This is to be reduced from three months’ to one month’s salary after five years’ employment and to two months’ and three months’ pay after 15 and 25 years respectively.

The draft also removes the protection against dismissal afforded to women for three years after the birth of a child, and makes it easier to dismiss those absent because of long-term sickness.

Age-linked holiday entitlement is also to be reduced, as are the premia paid for overtime working.

The government argues that the changes will increase employment by making the labour market more flexible.

However, the unions, who also fear that collective representation through unions is under threat, have opposed the plans as an attack on the vulnerable. They set out their objections in a meeting with the government on 11 August.

Peter Pataky, head of MSZOSZ, one of Hungary’s largest union confederations, has called for discussion between unions, employers and the government to find an agreed solution.