- Phase
- Act I of 2012 on the Labour Code
- Native name
- 2012. évi I. törvény a Munka Törvénykönyvéről
- Type
- Staff information and consultation on business transfers
- Added to database
- 26 October 2015
Article
Articles 36-41, 265 and 282
Description
In case of a transfer of an economic undertaking (defined as an organised group of material or other resources), the transferor’s rights and obligations arising from the employment relationships existing on the date of the transfer are transferred to the receiving employer (transferee).
The transferor and the transferee have to inform, within 15 days prior to the effective date of the transfer, the works council on:
- the planned or envisaged date of the transfer;
- the reason for the transfer; and
- the legal, economic and social implications of the transfer for the employees.
If no works council exists at the transferor, of if no workers' representatives have been elected, it is the employee that has to be notified of the above, as well as any measures envisaged that might affect them (Article 265).
As of January 2023, under Article 38 (1), the new employer must also provide notification in writing to the employee of the transfer and the identity of the new employer as well as any change in the conditions of work, on the day of the transfer.
The transferor and the transferee must enter into negotiations with the works council, with the goal of reaching an agreement. Negotiations should cover any measures in relation to employees, the principles of these measures, the ways and means of avoiding or mitigating detrimental implications of the transfer.
Following the transfer, the transferee must continue to observe the terms and conditions of the collective agreement applicable to the transferor on the date of the transfer for at least a year. This period can only be shorter in case of the expiry of the collective agreement or the entry into force of another collective agreement. (Article 282)
The transferor and the transferee are jointly and severally liable in respect of obligations towards employees which arose before the date of the transfer if an employee submits his/her claim within one year from the date of the transfer.
Citation
Eurofound (2015), Hungary: Staff information and consultation on business transfers, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/hungary