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Hungary - Avenues for redress (penalties, remedies) and litigation procedure for individual complaints

Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - Hungary - 2019    

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Compensation for unfair dismissal - free determination by court: No

  • Sections 82 and 83 LC

    The employer shall be liable to provide compensation for damages resulting from the wrongful termination of an employment relationship. In addition, the employee is entitled to severance pay as well, if: a) his employment relationship was wrongfully terminated by means other than notice; or b) he did not receive any severance pay at the time his employment relationship was terminated.

    In lieu of Subsections compensation described above, the employee may demand payment equal to the sum of his monthly pay due for the notice period when his employment is terminated by the employer.

    At the employeeu2019s request the court shall reinstate the employment relationship:
    a) if it was terminated in violation of the principle of equal treatment;
    b) if it was terminated in violation of statutory protection against dismissals concerning specific workersu2019 groups; (...)
    e) if the employee successfully challenged the termination of the employment relationship by mutual consent or his own legal statement therefor.

    As regards entitlements arising after the employment relationship was reinstated in connection with the duration of employment, the time between the termination (cessation) of the employment relationship and the day of reinstatement shall be regarded as time spent in employment. The employee shall be compensated for any lost wages, other benefits and for damages in excess thereof. The employeeu2019s absentee pay shall be taken into consideration as lost wages.

Compensation for unfair dismissal - Are there legal limits?: Yes

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
Compensation (in lieu of reinstatement): max. 12 months' pay

  • Sec. 82 (2) LC

Reinstatement available: Yes

  • Sec. 83 of the LC, see in detail above.

Preliminary mandatory conciliation: No

  • However, the parties can resort to extra-judicial conciliation provided it is so stipulated in a collective or an individual agreement (sec. 288 of the LC). However, such an agreement may have no effect on the time limits for asserting workers┤ rights specified in section 287 of the LC.

Competent court(s) / tribunal(s): labour court; administrative body

  • Ľ Administrative and labour courts have jurisdiction in the first instance over disputes arising from the employment relationship. (Sec. 20(2) of Act CXXX of 2016 on the Code of Civil Procedure). Appeals are heard by tribunals (in every county); revision of final judgements of tribunals are heard by the K˙ria (Act CLXI of 2011 on the Organization and Administration of the Courts, sec. 21(1), 24(1)).

Existing arbitration: No

  • No statutory provision. Arbitration mechanisms are provided by private entities, and can be used on a voluntary basis.