Probation Period in Hungary
Probation periods in Hungary, or “próbaidő” in Hungarian, offer a trial for both employees and employers before entering into a permanent contract. It gives both parties the chance to see if the role and company are a good fit.
According to the Hungarian Labour Code, Act I of 2012, during a probation period, the employer or the employee can terminate the contract immediately and without any reason.
However, there are strict rules on how long the probation period can be and in what conditions it can be applied. Knowing how the probation periods are regulated in Hungary is important for both parties.
Definition of a Probation Period in Hungary
A probation period in Hungary is defined at the beginning of the employment contract, during which both the employee and employer can see if the job and the work environment suit them.
It must be written in the employment contract at the beginning of the job. If there is no mention of the trial period in the contract, then there is no probation period.
During the probation period, the employer or employee can terminate the employment relationship at any time without prior notice or reason, but the termination must be in writing.
Lengths of Probationary Periods in Hungary
Probation periods in Hungary are typically three months, but they can be less if agreed upon by both parties at the start of the contract. If it’s shorter than 90 days, probation can only be extended up to three months.
The only exception to this is if a collective bargaining agreement is made, in which case the probation period can extend up to six months.
Permanent or Indefinite Contracts
Probation periods are usually included in permanent or indefinite employment contracts. In this case, either side of the contract may terminate the employment relationship immediately without providing a reason or notice, unlike regular employment.
After the probation period, the employee gets full protection under the Hungarian labour law, and the termination of the employment relationship is subject to the regular notice periods and justification requirements.
Fixed-Term or Definite Contracts
Probation periods may also be included in fixed-term or definite contracts. But in this case, the length of the probation period must be appropriate with regard to the length of the employment relationship.
For example, in the case of a six-month fixed-term employment contract, the probation period may be one month, but it’s illogical to include a probation period of 4 months. No matter what kind of employment contract is signed, the maximum length of probation must be three months unless a longer probation period is provided by a collective agreement.
If the employment relationship is terminated during the probation period, the employer is not required to justify the termination (as long as it’s not discriminatory), and the employee is not entitled to severance pay.
Legal Considerations for Probation Periods in Hungary
Probationary periods have to be agreed upon in writing before starting the job. If not, the probationary period will not be valid. The Labour Code does not allow any probationary clause to be added after the beginning of the employment relationship.
Even though no reasons have to be given to terminate a contract during probation, the employer can’t terminate the contract during a probationary period based on a discriminatory reason. An employee cannot be fired because of their gender, age, religion, race, or disability; otherwise, they can challenge the employer in court.
Pay and Working Conditions
Probationary employees are to be treated the same way as regular employees as regards their pay and other working conditions. Therefore, the employer has to pay the probationer at least the national minimum wage, or in the case of jobs for which the requirement is a secondary or vocational education, the guaranteed minimum wage.
The gross monthly minimum wage as of January 2025 in Hungary is HUF 290,800, and the guaranteed gross monthly minimum wage is HUF 348,800. From this, the employer must deduct standard tax and social security contributions, so the net amount would be around HUF 193,382 and HUF 231,952, respectively.
Probationary employees also get the same protection under working conditions law as regular employees. Working hours, overtime, rest breaks, and health and safety are all regulated by the same laws, and the employer must also adhere to them.
If the employer treats probationary employees unfairly just because they are on probation, they may face legal problems.
Termination and Notice
The most important attribute of the probation period is the right of either side of the contract to terminate it without notice or justification.
When the probation period is over, the employer must give the employee at least 30 days’ written notice, and the employee may be required to give the employer 30 days’ notice if they resign.
Furthermore, after the probation period, an employer must have a valid reason for terminating the contract. This could be due to poor performance or disciplinary issues in the workplace. If it’s non-justified, the employee may have some grounds to take legal action. All reasons for termination must be stated in the Labour Code.
If the employer terminates a contract without following the proper procedures, they can be challenged by the employee in court.
Vacation / Holidays
Vacation time in Hungary accrues from the first day of work, including days spent on probation. Employees are entitled to 20 working days of annual leave, as well as additional vacation days if their age falls into certain categories included below:
| Age | Annual Leave Entitlement |
|---|---|
| Under 25 years | 20 days |
| From 25 | 21 days |
| From 28 | 22 days |
| From 31 | 23 days |
| From 33 | 24 days |
| From 35 | 25 days |
| From 37 | 26 days |
| From 39 | 27 days |
| From 41 | 28 days |
| From 43 | 29 days |
| From 45 | 30 days |
This is in addition to national public holidays, of which Hungary has 11. An employee is entitled to paid time off on these national holidays even if they are on probation. If employment ends during or after probation, any unused vacation time should be paid out by the employer as part of the employee’s final settlement.
Benefits of Probation Periods in Hungary
It is important to know the benefits of probation so that you can understand why they are included in employment contracts in Hungary and most other countries. Both employers and employees benefit from a probation period.
- For Employees
To an employee, the probation period is an opportunity to decide if their new job really is a good fit for their skills and expectations. It’s a time to assess the working environment in the company, the treatment of staff by the employers, and whether or not the job responsibilities match the initial job description. It is also an opportunity to prove their skills and abilities.
If the employee is unhappy, the relationship can be simply ended without formalities and without giving a reason.
- For Employers
To an employer, a probation period means lower risk when hiring. There’s a specific time during which a new hire can be tested on performance, attitude, and fit within the team. This is before the employee is offered a long-term or permanent contract, which makes any actions like firing that employee more complicated.
It also allows an employer to quickly and efficiently move on from a new hire that simply didn’t meet their expectations and replace them without the formal complexities.
Conclusion
If you are hiring employees in Hungary and looking for top remote talent, you don’t have to let employment contracts, local compliance, and probation regulations in Hungary hold your business back. Remote People will take care of all the paperwork and local labor laws, freeing up your time to work on other important aspects of your company.
Frequently Asked Questions
Yes, either the employer or the employee can terminate the contract without giving a reason. But if an employer terminates the contract for discriminatory reasons, it may be illegal, and the employee can challenge them in court.
No notice is required from either side to terminate the employment during probation.
If a probation period is not stated in the employment contract, it is not legally valid.
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