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Proposed labor code seen to reduce employee rights

Hungary’s new draft labor code  is full of shady and intangible regulations, business daily Napi Gazdaság said, citing experts.

The paper added that the new code would require employees to “behave in an expected way” beyond working hours, too.

The code would also weaken employees’ ability to impose interest conciliation by “attacking and reducing” the system of collective contracts, the daily said.

The draft of the new code was published on Friday, July 22 and, among other things, it would reduce mandatory severance pay, holiday pay and overtime pay.

The bill would reduce severance pay from the present three months’ salary to one month after more than five years of employment, two months after 15 years and three months over 25 years.

There would no longer be severance payment for retirees who are working.