Eurofound's ERM database on restructuring-related legal regulations provides
information on regulations in the Member States of the European Union and Norway
which are explicitly or implicitly linked to anticipating and managing change.
Hungary: Obligation to consider alternatives to collective dismissals
Phase
Act I of 2012 on the Labour Code
Native name
2012. évi I. törvény a Munka Törvénykönyvéről
Type
Obligation to consider alternatives to collective dismissals
Added to database
08 May 2015
Article
Article 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.
Commentary
The use of this part of the legislation is not a common practice. This legislation can be employed similarly to mediation. Employers usually use solely what is compulsory according to the law.
Additional metadata
Cost covered by
None
Involved actors other than national government
Works council
Involvement (others)
None
Thresholds
Affected employees: 10 Company size: 21 Additional information: No, applicable in all circumstances
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