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Banks in focus of labor investigations

In addition to investigations on banks shifting bank tax to costumers and on applying new regulations on mortgage lending, the Hungarian Labor Inspectorate (OMMF) has started a series of investigations on labor issues in the sector.

“Employment without contract or registration is not common in the bank sector. The majority of deficiencies is connected with breaching the rules on working hours, mandatory breaks and working-hour registrations,” Attila Máriás, labor market consultant of BDO Magyarország said.

Some banks also tend to register extra working hours in an innapropriate way, to pay for extra working hours as bonuses, and to exceed the frame of annual extraordinary working hours, the company said.

Although investigations started at the beginning of February, it is still not known wheter they are part of the investigation guidelines for 2011 of the OMMF. Deadline for announcing such guidelines was February 20, BDO notes.

“If labor inspection of banks is part of this year’s agenda at the OMMF, players in the sector should be prepared for further investigations in the rest of the year,” Máriás said.

According to the related law, the authority may impose fines on banks ranging from HUF 30,000 to HUF 20 million, depending on the extent of the infringement.