Countries around the world have various laws and regulations in place to protect employees from harm. For example, many countries have whistleblower protection laws, which enable whistleblowers to come forward without fear of retaliation.
Employers wanting to hire employees in Hungary should be aware of the various employee protection laws that exist so that they can both protect their employees and safeguard their businesses by ensuring compliance.
In this section, we’ll discuss Hungary’s whistleblowing law, data privacy rights for employees in Hungary, and specific rights concerning temporary agency workers. We’ll also talk about the laws prohibiting discrimination and harassment in Hungary and those ensuring equitable pay for male and female employees.
Whistleblowers play an important role in society by calling out wrongdoing witnessed in the workplace. For this reason, many countries have laws protecting whistleblowers and making it easier for them to come forward — and Hungary is no exception.
Hungary missed the deadline for implementation of the EU Whistleblowing Directive, which was set for December 2021. However, the country did eventually introduce its whistleblowing law in July 2024. This act requires companies with 50 or more employees to set up internal whistleblowing systems and to designate a person or persons to manage and investigate reports received from whistleblowers. In certain sensitive industries, the rules apply to all employers regardless of headcount.
Companies must allow employees to report either in writing or orally by phone, recorded voice message, or in person. They must work with an impartial whistleblower protection lawyer or another external body that complies with conflict of interest rules. Employers must inform whistleblowers of receipt of a report within seven days and update them on the outcome of the resulting investigation within 30 days.
Employers must comply with strict data protection laws when investigating whistleblowing claims, and only the person investigating a report may have access to the identity of a whistleblower. Whistleblowers are also protected from retaliation, which is any negative action taken against them due to their whistleblowing activity. Retaliation might include:
These actions are considered unlawful in the context of connection with a whistleblowing report, even if they would otherwise be lawful.
Employers in Hungary have certain responsibilities concerning the protection of their employees’ data. Specifically, employees should follow the rules set out in the EU General Data Protection Regulation, or GDPR.
Data protection in Hungary is primarily governed by the GDPR. The relevant regulatory body is the Hungarian Data Protection and Freedom of Information Authority (Hungarian DPA). Under the GDPR, employers in Hungary must only process employee data if they have a valid legal basis for doing so. In the employment context, the consent of the employee is not a valid legal basis due to the imbalance of power involved in the relationship.
There are also strict limitations on transferring and sharing employees’ personal data. Employers in Hungary must provide employees with a privacy notice that includes details about their processing of personal data and any monitoring or surveillance measures used in the workplace.
Employee monitoring and protection is strictly limited according to data protection laws in Hungary. First, the covert use of CCTV is illegal, and cameras must be clearly announced. Employers may not monitor public areas via CCTV. Generally, CCTV records can only be stored for three working days unless there’s a legitimate reason to store them for longer.
The monitoring of employee email use is only allowed when it’s in the legitimate interest of the employer. Employees must be informed of email checks and present when they are conducted. The monitoring of internet use is also permitted when there’s a legitimate interest, subject to certain limitations.
Employers must not perform checks on employees’ private emails or files. If an employee uses their own computer for work, it must have a separate hard disk partition for this reason.
Employers in Hungary can hire workers through temporary work agencies to cover short-term increases in demand or otherwise engage workers for a limited period. There are certain rules that employers should be aware of before doing so.
In general, there are very few restrictions on the use of temporary agency workers in Hungary. Employers may hire as many temporary workers as needed for any job position for a maximum of five years per assignment. This is the same limit that applies to fixed-term contracts concluded with the employee directly.
In Hungary, the Labour Code applies to all workers, including those hired through temporary work agencies. That means that these workers have the right to the same basic provisions as other employees. However, Hungarian law does not specify a period after which agency workers gain the right to equal treatment with other employees at the user company, as is the case in other countries.
Compared to other countries, there are not many restrictions on the use of temporary agency workers in Hungary. Agency workers may not be engaged for unlawful work, to break a strike, or if the same employee has had their employment with the user company terminated within the last six months. Temporary work assignments must not exceed five years, including any extensions.
Employees in Hungary have the right to be protected from discrimination or harassment on the basis of characteristics like their sex, race, or nationality. These protections are guaranteed by Hungarian labour laws. Read on to find out more.
The main laws prohibiting discrimination in Hungary are the Labour Code and the Equal Treatment Act. Between them, these two pieces of legislation prohibit both direct and indirect discrimination, harassment, unlawful segregation, and retaliation. Direct discrimination is treating one person or group less favourably than others based on a protected characteristic. Indirect discrimination is when a rule or standard theoretically applies to everyone but disproportionately impacts people with a certain characteristic.
The following characteristics are protected under Hungary’s anti-discrimination laws:
Treatment Act and is non-exhaustive. It is also illegal to discriminate against a person for any other situation, trait, or characteristic not related to their work.
Harassment is covered under the same laws that prohibit discrimination in Hungary because it’s considered to be a form of discrimination. It’s defined as an act that violates human dignity based on a protected characteristic. Sexual harassment, which is also prohibited, is harassment that is sexual or sexist in nature.
Employees who have experienced harassment or other forms of discrimination in Hungary can raise a claim with a labour court. This is only possible if the discrimination occurred in relation to the establishment, performance, or termination of the employment relationship or during the procedure prior to the establishment of the relationship (i.e., during the recruitment process). Employers may be made to pay restitution in an amount determined by the court.
There’s no specific law on pay equity in Hungary. However, the general principle of equal treatment applies, and all forms of discrimination are prohibited by law. Employees experiencing discrimination (including pay discrimination) in Hungary can take their claim to a labour court, where they may be awarded compensation. There are currently no requirements for employers to report on their gender pay gap in Hungary, although this will change soon.
A new directive on pay transparency and pay equity was approved by the European Parliament in 2023 and must be adopted into law in all member states by June 2026. This will introduce significant new requirements for employers, as well as new information rights for employees. For example, employees will be able to request information, broken down by sex, about their pay and that of colleagues working in the same or similar roles.
The directive will also introduce pay transparency reporting requirements for all employers with 150 or more employees, who will have to file reports every three years. Those with 250 or more employees will have to report every year. Once the directive is in effect, employers in Hungary and across Europe will also be prohibited from asking job applicants about their salary history and required to share starting salaries or ranges with candidates before the interview stage.
Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Hungary. Get it wrong, and you could face legal action and damage to your reputation.
Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.
Employee protection laws in Hungary include the Labour Code and Equal Treatment Act, supported by safety, privacy and whistleblowing rules. The Fundamental Law sets constitutional rights, while the Labour Code governs employment terms, working conditions, employee representation and dismissal.
The Equal Treatment Act prohibits workplace discrimination and harassment, and occupational-safety legislation requires safe and healthy work. Data protection is governed by the General Data Protection Regulation and national rules. A separate 2023 law covers complaints, public-interest disclosures and internal reporting channels.
Collective agreements and individual contracts can give employees more protection but cannot remove mandatory rights. The employment supervisory authority, the Commissioner for Fundamental Rights and the National Authority for Data Protection and Freedom of Information each oversee different rules.
Employers therefore need separate procedures for recruitment, pay, workplace monitoring, complaints and dismissal. Each procedure should identify the rule that applies, who makes the decision and which records the company must keep.
Workers who report wrongdoing through a protected channel and meet the statutory reporting conditions are protected from retaliation. Employers covered by the 2023 law on complaints, public-interest disclosures and reporting abuses must provide a confidential way to report concerns.
Employers with at least 50 workers generally need an internal channel. Certain regulated organisations must provide one regardless of headcount. Employees and other people connected with the organisation can use it to report concerns. The employer must protect the reporter’s identity and arrange an impartial investigation, normally within 30 days. A longer period is allowed when justified, but the investigation and notification of the outcome must generally be completed within three months of receiving the report.
Under the whistleblower act in Hungary, dismissal, demotion, intimidation or any other disadvantage caused by a protected report can be unlawful. The reporter may challenge retaliatory action. Protection can also extend to people who assist the reporter and certain persons or organisations connected with them.
The employer must appoint authorised people to handle cases, protect confidentiality, give the reporter feedback, keep the required records and limit access to personal data. Providing an email address alone is not enough.
Labour law in Hungary prohibits direct and indirect discrimination, harassment, segregation and retaliation based on a protected characteristic. The rules cover recruitment, employment terms, pay, promotion, training, discipline and termination.
Protected characteristics include sex, race, skin colour, nationality, ethnic origin, language, disability, health status, religion, political or other opinion, family or marital status, maternity or pregnancy, sexual orientation, gender identity, age, social origin and financial status. Part-time, fixed-term and membership of an employee-interest representation organisation are also protected.
An employer may treat applicants or employees differently only when a characteristic is genuinely necessary for the job and the requirement is proportionate. The distinction must be based on a genuine and determining occupational requirement, pursue a lawful objective and be proportionate.A business preference is not enough.
Employers should use the same job-related criteria for comparable decisions and record why each decision was made. Employees can bring claims before the Commissioner for Fundamental Rights or a court. The employer must not retaliate against anyone who raises an equal-treatment concern.
Employee protection laws in Hungary require equal treatment from job advertising and recruitment through working conditions, benefits, promotion and dismissal. Employers must base decisions on legitimate job or business criteria rather than a protected characteristic.
The Equal Treatment Act and Labour Code protect employees and applicants against direct and indirect discrimination, harassment, unlawful segregation and retaliation. They also protect family-related rights, including requesting or taking paternity, parental and childcare leave.
Equal treatment does not mean every employee must receive identical terms. Differences can reflect responsibility, performance, experience or another job-related factor if the employer uses that factor consistently.
An employer can link a recruitment requirement to a protected characteristic only when that characteristic is genuinely necessary for the role and the requirement is proportionate. Clear job criteria, written reasons and an accessible complaint process help the employer show that applicants and employees received a fair opportunity.
Employee protection laws in Hungary give employees a right to equal pay for work of equal value, without discrimination based on a protected characteristic. Pay includes base salary and cash or non-cash benefits connected with employment.
The Labour Code compares the nature, quality and quantity of work, working conditions, required qualifications, responsibility and labour-market conditions. Pay can differ when the employer has a genuine reason that is not linked to a protected characteristic and applies it consistently. A job title alone does not decide whether work is equal in value.
These rules apply to starting pay, increases, bonuses and benefits. Employers need accurate job descriptions and written reasons for pay decisions. If an employee presents facts suggesting discrimination, the employer may then need to show that it followed the equal-treatment rules. Comparing similar roles can reveal pay gaps that have no recorded explanation. A pay structure helps only when managers use its criteria consistently in hiring and pay decisions.
Labour law in Hungary allows employers to monitor employees only for a legitimate employment-related purpose and in a necessary, proportionate way. Monitoring cannot extend into an employee’s private life simply because the employer owns the device or system.
The Labour Code, the General Data Protection Regulation and Hungary’s national data-protection legislation govern workplace monitoring. Employers must tell employees in writing what they will monitor, why it is necessary, the legal basis, who can see the information and how long it will be kept. Email, internet use, cameras, location data and access logs each need separate consideration.
An employer can restrict personal use of work technology through a clear policy, but secret or continuous surveillance is difficult to justify. Monitoring that creates a high risk for employees may require a data-protection impact assessment.
The National Authority for Data Protection and Freedom of Information can investigate complaints about workplace monitoring and require employers to correct any problems it finds. Employers need to make sure their written notice accurately explains what monitoring takes place and how it is carried out.
Employee protection laws in Hungary cover temporary, agency, fixed-term and part-time workers. The type of contract does not remove rights relating to pay, working time, leave, safety or protection from discrimination.
Temporary agency workers sign their employment contract with the agency and work under the client company’s direction. The agency and client divide the employer’s duties, so the contract should state who gives instructions, keeps records, manages safety and provides employee information. Agency workers must generally receive the same basic working and employment conditions that would apply if the client had hired them directly for the same position, subject to the detailed Labour Code rules.
Assignments to the same client cannot generally exceed five years. The calculation includes extensions and a new assignment made within six months of the previous assignment, including where the worker is supplied through another agency.
An employer cannot treat a worker less favourably simply because the contract is fixed term or part-time. Any difference needs a job-related reason. A company using contractors should also examine how the work is performed. Calling someone an independent contractor does not prevent reclassification if the company controls the work and the person works like an employee.
The employment supervisory authority, Commissioner for Fundamental Rights, data protection authority, safety authorities and courts enforce different parts of labour law in Hungary. The responsible body depends on whether the issue concerns employment standards, discrimination, privacy, safety or an individual employment claim.
The employment supervisory authority, operating through government offices, checks core employment requirements and can investigate unlawful employment practices. The Commissioner for Fundamental Rights handles administrative equal-treatment cases. The National Authority for Data Protection and Freedom of Information supervise employee-data processing and monitoring, while occupational-safety authorities cover workplace health and safety.
Courts decide many contractual, dismissal, pay and discrimination claims. Trade unions and works councils may also represent employee interests, but they are not regulators.
Employers should identify the type of complaint before sending it to an authority or preparing a response. One event can involve more than one authority. For example, monitoring that targets an employee because of a protected characteristic may raise both privacy and discrimination concerns.
Both the employee and employer bear part of the burden of proof in a discrimination claim. The employee must first make it plausible that they suffered a disadvantage and had, or were perceived, a protected characteristic. The employer must then prove that the circumstances alleged by the employee did not exist, that it complied with the equal-treatment requirement or that it was not legally required to comply in the circumstances. The employee does not have to prove discriminatory intent.
Under employee protection laws in Hungary, this process applies to equal-treatment claims. Criminal and minor-offence cases use different evidence rules. The employer may dispute the facts or show that the decision was based on lawful, consistently applied criteria.
Employers defending recruitment, pay, promotion or dismissal decisions need records created when the decision was made. Clear job requirements, candidate comparisons, approvals and employee communications can show which criteria were used and whether the same standards were applied to people in comparable positions.
CXC helps businesses protect employee rights in Hungary by applying local employment requirements across contracts, pay, working conditions, leave and termination, while providing employees with local employment support throughout their time with the company.
Through our Employer of Record service, CXC acts as the legal employer and manages the employment administration needed to meet Hungarian requirements. This includes compliant contracts, payroll and statutory contributions, leave entitlements and support when employment terms change or the employment relationship ends.
With more than 30 years of workforce management experience and coverage across 100+ countries, CXC can support international companies that need to meet local employee protections in Hungary while managing teams across multiple markets.
Speak to our team to learn more about employing and managing workers in Hungary with CXC.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
DISCLAIMER: The information contained on this website is provided for general informational purposes only and should not be construed as legal, tax, or other professional advice on any subject matter. While we endeavor to ensure that the content is accurate and up to date, we make no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. The content on this site is not intended to be a substitute for professional advice. Users should not act or refrain from acting based on any information on this website without seeking the appropriate legal, tax, or other professional advice tailored to their specific circumstances from qualified professionals. We expressly disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this website. Use of the information on this site does not create an attorney-client, tax advisor-client, or any other professional-client relationship between the user and the website or its authors.
Want to know more about hiring and compliance in Hungary?
Fill in the form below to get the know how to future proof your contingent workforce program today!
