Labour Code [LC], Act No XXII of 1992, as amended up to Law Law No. 73/2007
Date:18 Jun 2007;
(view in NATLEX »)
Act on Equal Treatment and Promotion of Equal Opportunities, No CXXV of 2003
Date:28 Dec 2003;
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Size of enterprises excluded (≤): 20
Exclusion only applicable to collective dismissals: see definition of collective dismissal in sec. 94/A (1) LC.
The rules on individual dismissals apply to all enterprises.
Workers' categories excluded: civil/public servants, police, army, judiciary
Sec. 2 (1) LC states that public service relationship are governed by a separate act.
Note :
- The Labour Code makes special provisions for termination of employment of employees in executive positions. In particular, the obligation to justify dismissal and special protection against dismissal during certain periods do not apply (sec. 190 LC).
- The LC also provides for specific rules pertaining to termination of employment by temporary work agencies (sec. 193/I to 193/M LC).
- Provisions on collective redundancy do not apply to the crews of seagoing vessels (sec. 94/G, L).
Valid reasons for FTC use: no limitation on first FTC
The LC does not require any specific reason for resorting to a FTC for the first time (sec. 79 2) - 7) LC).
However, a contract renewed without a valid reason ("rightful interest") on the part of the employer and aimed at compromising the interest of the employee is deemed established for an indefinite duration (sec. 79 (4) LC).
Maximum number of successive FTCs: no limitation
However, a contract renewed without a valid reason ("rightful interest") on the part of the employer and aimed at compromising the interest of the employee is deemed established for an indefinite duration (sec. 79 (4) LC).
Maximum cumulative duration of successive FTCs: 60month(s)
Sec. 79 (5) LC.
However, this restriction does not apply to executives employees (sec. 190 (1) LC).
% of workforce under FTC: 8.5
Source: Eurostat, 2009 (annual average).
The figure refers to the percentage of employee of total number of employee with a contract of limited duration (= temporary job).
Eurostat data are based on the following definition:
"A job may be considered temporary if employer and employee agree that its end is determined by objective conditions such as a specific date, the completion of a task or the return of another employee who has been temporarily replaced (usually stated in a work contract of limited duration). Typical cases are: (a) persons with seasonal employment; (b) persons engaged by an agency or employment exchange and hired to a third party to perform a specific task (unless there is a written work contract of unlimited duration); (c) persons with specific training contracts."
Maximum probationary (trial) period (in months): 3 month(s)
Pursuant to sec. 81 LC, the trial period shall be 30 days. It can however be extended to a maximum of 3 months if so stipulated in a collective agreement or agreed upon by the parties.
Obligation to provide reasons to the employee:
Yes
Sec. 89 (2) LC
Sec. 89(3) LC (in connection with his/her ability, his/her behavior in relation to the employment relationship or with the employer's operations).
- Race, colour, sex, etc. are listed as prohibited grounds for discrimination including in the context of termination of employment in the Equal Treatment Act (No. 125 of 2003). (Sec. 8 and 21 c) ETA).
- In addition, pregnancy, parental leave; temporary injury or illness are periods during which dismissal is prohibited (sec. 89 (4) LC).
* Prior consent of the higher ranking trade union body is requested in case of dismissal of an elected trade union representatives: sec. 28 (1) LC.
* The LC provides for protected periods during which ordinary dismissal can not take place: pregnancy, parental leave.: sec. 90 (1) LC.
* Workers who are between 57 and less than 62 years old, can only be dismissed in "particularly justified cases", unless they are already entitled to pension benefits: sec. 89(7) LC.
Notification to the worker to be dismissed: written
Sec. 89 LC
Notice period:
Sec. 92 LC: The notice period is minimum 30 days and maximum 1 year.
The 30-day period is extended by:
* 5 days after 3 years of service;
* 15 days after 5 years of service;
* 20 days after 8 years of service;
* 25 days after 10 years of service;
* 30 days after 15 years of service;
* 40 days after 18 years of service;
* 60 days after 20 years of service.
tenure ≥ 6 months:
tenure ≥ 9 months:
tenure ≥ 2 years:
tenure ≥ 4 years:
tenure ≥ 5 years:
tenure ≥ 10 years:
tenure ≥ 20 years:
Pay in lieu of notice: No
Notification to the public administration: No
Notification to workers' representatives: No
However, in case of dismissal of an elected trade union representatives, prior consent of the higher ranking trade union body is requested: sec. 28 (1) LC
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
However, in case of dismissal of an elected trade union representatives, prior consent of the higher ranking trade union body is requested: sec. 28 (1) LC.
Definition of collective dismissal (number of employees concerned):
At least:
1) 10 employees in undertakings with 20 to 99 employees;
2) 10 % of the employees in undertakings with 100 to 299 employees;
3) 30 employees in undertakings with at least 300 employees within 30 days.
Sec. 94/A (1) LC
Prior consultations with trade unions (workers' representatives): Yes
Sec. 94/B LC
Notification to the public administration: Yes
Sec. 94/D LC
Notification to workers' representatives: Yes
Sec. 94/B and 94/E LC
Approval by public administration or judicial bodies: No
Approval by workers' representatives: No
Priority rules for collective dismissals (social considerations, age, job tenure): No
No criteria listed. Selection criteria are mentioned in sec. 94/B (1) b) as one of the elements to be communicated to the worker's representatives during the consultation process.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...): Yes
Art. 94/B (5) LC: elements to be considered in the course of the consultation process.
Priority rules for re-employment: No
Severance pay:
Sec. 95 LC.
Severance pay - following a dismissal (including on economic grounds) or the dissolution of the employer - varies according to the length of service, as follows:
* 1 month's pay for at least 3 years of service;
* 2 months' pay for at least 5 years of service;
* 3 months' pay for at least 10 years of service;
* 4 months' pay for at least 15 years of service;
* 5 months' pay for at least 20 years of service;;
* 6 months' pay for at least 25 years.
While workers who qualify as pensioner (62 year old) are not entitled to severance pay, workers between 57 and less than 62 are entitled to the above mentioned amount increased by 3 months' wages.
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 4 years: 1 month(s)
tenure ≥ 5 years: 2 month(s)
tenure ≥ 10 years: 3 month(s)
tenure ≥ 20 years: 5 month(s)
Redundancy payment:
No specific redundancy payment. Severance pay covers any dismissal for economic reasons (sec. 95 LC).
tenure ≥ 6 months: 0 month(s)
tenure ≥ 9 months: 0 month(s)
tenure ≥ 1 year: 0 month(s)
tenure ≥ 2 years: 0 month(s)
tenure ≥ 4 years: 1 month(s)
tenure ≥ 5 years: 2 month(s)
tenure ≥ 10 years: 3 month(s)
tenure ≥ 20 years: 5 month(s)
Compensation for unfair dismissal - free determination by court: No
Sec. 100 (4) LC
Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
Compensation (in lieu of reinstatement): min. 2 months' pay and max. 12 months' pay
(In addition the employee shall be reimbursed for the lost wages and compensated for any damages arising from such loss.)
Sec. 100 (4) and (6) LC
Reinstatement available: Yes
Sec. 100 LC:
If the Court rules that the employment was unlawfully terminated, it must order reinstatement of the employee if he so requests. However, upon request of the employer and under certain conditions, the court can refrain from ordering reinstatement.
Preliminary mandatory conciliation: No
However, the parties can resort to extra-judicial conciliation provided it is so stipulated in a collective agreement (sec. 199/A LC).
Competent court(s) / tribunal(s): labour court
Labour Courts have jurisdiction in the first instance over disputes arising from the employment relationship. Appeals are heard by regular courts. (Sec. 16 of Act LXVI of 1997 on the organisation and administration of courts)
(http://ec.europa.eu/civiljustice/jurisdiction_courts/jurisdiction_courts_hun_en.htm)
Existing arbitration: No
No statutory provision nor information found.