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.
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