Summer is here, and most people choose this season to go on a vacation in Hungary. But how do summer leaves work at a Hungarian company? Read on to find out.
As many aspects of the employment relationship, vacations are also governed by labor law. It is both in the interest of the employer and the employee that the employees perform their work efficiently and safely, and for that they need adequate rest from time to time. In line with that, both daily rest periods and longer vacations are regulated.
In Hungary, employees must have at least 20 days of paid vacation days each calendar year. On these days, they cannot be asked to work, and they still must receive compensation. The number of these days grows with the age of the employee (up till 30 days / year at the age of 45), and other extra days can be added for people raising children, or in some other cases.
Officially, most of the vacation days are allocated by the employer; only 7 of them can be selected by the employee. However, in most cases vacation days are chosen in agreement with the employer and the colleagues who will be responsible for substitution. Vacation days are supposed to be used in a way that every year they include at least one two-week holiday, which is usually referred to as an annual leave – and which often happens during the summer.
In Hungary, there are 13 public holidays when employees are normally not required to work. Of course, some businesses need or want to be open on these days too (e.g. restaurants); they will be required to pay wage supplements to their employees. It is normal for employees to take their paid leave around these bank holidays; this way they can go on a longer vacation for the “cost” of fewer vacation days. (For example, if the bank holiday is on Monday and the employee takes Tuesday, they get a four-day-long weekend for the cost of only one vacation day.)
It is the employer’s responsibility to have every employee take all their vacation days each year. A few of the vacation days can be carried over to the next calendar year if the employer failed to allocate them, but only if a special agreement to this effect was signed beforehand. Unused vacation days cannot be compensated in money; they must be allocated properly.
The Helpers Team provides business assistance to small and medium-sized companies in Hungary for more than 15 years. Our services include HR support and payroll administration, complete with the administration of paid leaves, sick leaves, and maternity leaves as well as calculations for wage supplements.
Fill in the form below, and ask about giving out vacation in Hungary to your local employees – or any other aspect of HR.
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