Termination and Severance — Hungary

Opus research, 2026-04-10. Hungarian termination law under Act I of 2012 uses a structured system with seniority-based notice periods and severance pay tiers. The employer must provide a reason for ordinary dismissal, and certain protected categories (pregnant women, pre-retirement employees) have enhanced protections.

1. 主要法源

• Munka Törvénykönyve (Labour Code, Act I of 2012) 🟢

  • Chapter XIII (§64–§93): termination of employment
  • §65: modes of termination
  • §66–§68: notice by employer (felmondás)
  • §69: notice period tiers
  • §77: severance pay (végkielégítés)
  • §78: immediate termination (azonnali hatályú felmondás)
  • §71–§73: dismissal protections and restrictions
  • §82–§83: unlawful termination remedies

• 主管機關: Labour authorities; Administrative and Labour Courts (közigazgatási és munkaügyi bíróság)

2. 核心規定

2.1 Methods of Termination 🟢

Employment may end by (§64):

• Mutual agreement (közös megegyezés) — written
• Ordinary notice (felmondás) — by either party
• Immediate termination (azonnali hatályú felmondás) — for serious cause
• Termination during probation — with immediate effect, no reason required
• Expiry of fixed-term contract
• By operation of law (death, employer dissolution, etc.)

All termination must be communicated in writing; oral termination is invalid.

2.2 Just Cause for Employer Dismissal 🟢

For ordinary notice (felmondás) by the employer, a reason must be stated (§66):

• The reason must relate to the employee's conduct, ability/capability, or the employer's operational reasons
• The stated reason must be clear, factual, and demonstrable — vague reasons are invalid
• Unlike Czech law, Hungary does not provide an exhaustive list of grounds; instead, the reason must fall into one of the three broad categories 🟠

No reason required: for employee-initiated notice (felmondás), or during probation by either party.

2.3 Notice Period 🟢

Seniority-based tiers under §69:

• Notice period begins on the day following delivery of the notice
• During employer-initiated notice, the employer must exempt the employee from work for at least half of the notice period, with pay 🟢
• Notice period may be extended by agreement but cannot exceed the statutory periods by more than 6 months total

2.4 Severance Pay (Végkielégítés) 🟢

Applies only when the employer terminates with ordinary notice (§77). Employee must have at least 3 years of continuous service.

Pre-retirement bonus: If the employment ends within 5 years of the employee's retirement age, the severance amount increases by an additional 1–3 months (depending on proximity to retirement). 🟢

No severance if:

• Employee resigns (ordinary notice by employee)
• Employer terminates for employee's conduct-related reasons (behavioral dismissal)
• Employee is entitled to old-age pension at the time of termination

2.5 Immediate Termination 🟢

Under §78, either party may terminate immediately if the other party:

1. Willfully or by gross negligence committed a serious breach of a material obligation arising from the employment relationship; or
2. Otherwise rendered it impossible to maintain the employment

Must be exercised within 15 days of learning of the cause, and no later than 1 year from the event (or conclusion of criminal proceedings if applicable). Must state the specific reason in writing.

2.6 Protected Categories — Dismissal Restrictions 🟢

Employer may not give ordinary notice (§65–§68) to:

• Pregnant women (from the date pregnancy is confirmed)
• Women undergoing fertility treatment (from the start of treatment, for up to 6 months)
• Employees on maternity leave
• Employees on parental leave (unpaid childcare leave)
• Employees on carer's leave
• Employees during voluntary reserve military service

Additionally, the employer must obtain consent of the competent trade union before dismissing a union representative (§273). 🟢

2.7 Economic Layoff / Mass Redundancy 🟢

When the employer contemplates dismissing:

• ≥ 10 employees (if 20–99 total workforce)
• ≥ 10% (if 100–299)
• ≥ 30 employees (if 300+)

within a 30-day period for operational reasons:

1. Notify the works council (or trade union) in writing at least 15 days before the first dismissal
2. Engage in consultations on avoidance measures, mitigation, retraining
3. Notify the competent labour center (állami foglalkoztatási szervek) at least 30 days in advance
4. Individual dismissals may not take effect earlier than 30 days after labour center notification

2.8 Unlawful Dismissal Remedies 🟢

Under §82–§83:

• Employee must challenge the dismissal before the Administrative and Labour Court within 30 days of receiving the notice
• If the court finds the dismissal unlawful:
  • Primary remedy: Compensation equal to 12 months' absence fee (maximum)
  • Reinstatement: Only if the employee requests it and the court considers it appropriate (relatively rare in practice) 🟠
  • Court may award additional damages if proven
• If the dismissal is procedurally defective but substantively justified, compensation may be reduced

3. 立法理由與實務見解

• 2012 reform: The current Labour Code (Act I of 2012) replaced the 1992 code and gave employers significantly more flexibility — severance reduced, union powers weakened, at-will probation maintained 🟢
• Burden of proof: Employer must prove the factual basis of the stated dismissal reason 🟠
• Court approach: Hungarian courts examine whether the stated reason is factually correct and whether the dismissal was proportionate 🟠
• Mutual agreements: In practice, many terminations are structured as mutual agreements to avoid litigation risk 🟠
• 30-day challenge deadline: Much shorter than Czech Republic's 2-month period; employees often miss it 🟠

4. 雇主合規重點

• 🟢Always state a clear, factual, and demonstrable reason for employer-initiated ordinary notice
• 🟢Verify no protected-category prohibition applies before delivering dismissal
• 🟢Calculate notice period correctly using the seniority tier table
• 🟢Exempt the employee from work for at least half the notice period (with pay)
• 🟢Pay severance on the last day of employment or as agreed
• 🟢For mass redundancy: notify works council/union ≥15 days and labour center ≥30 days before
• 🟡Obtain trade union consent before dismissing a union representative
• 🟠Document performance issues and warnings before conduct-based dismissal

5. 與其他轄區的關聯

• 🔷 Czech Republic: Both require employer reasons; CZ has exhaustive statutory list while HU uses broad categories
• 🔶 USA: Fundamental difference — HU requires reason; USA uses at-will in most states
• 🔷 Taiwan: Both use seniority-based severance; Taiwan's formula is 0.5 months per year (new system)
• 🔶 Germany: German system requires social selection (Sozialauswahl) for redundancy; HU has no such requirement

6. 風險警示

• 🔴High risk: Dismissal without a stated reason or with a vague reason — automatically unlawful
• 🔴High risk: Dismissing a pregnant employee or employee on maternity/parental leave
• 🟡Medium risk: Failing to exempt employee from work during half the notice period — procedural defect
• 🟡Medium risk: Not meeting mass redundancy consultation/notification timelines — dismissals may be void
• 🟡Medium risk: Employee's 30-day challenge deadline is short but not a guarantee against claims — interim measures possible

7. 資料來源清單

1. CMS Expert Guide — Dismissals Hungary — https://cms.law/en/int/expert-guides/cms-expert-guide-to-dismissals/hungary — accessed 2026-04-10
2. Forvis Mazars — Severance Pay Rules 2025 — https://www.forvismazars.com/hu/en/insights/articles/severance-pay-the-most-important-rules-in-2025 — accessed 2026-04-10
3. Accace — Labour Law Hungary 2025 — https://accace.com/labour-law-and-employment-in-hungary/ — accessed 2026-04-10
4. L&E Global — Termination Hungary — https://leglobal.law/countries/hungary/employment-law/employment-law-overview-hungary/termination-of-employment-contracts-in-hungary/ — accessed 2026-04-10
5. Playroll — Severance Pay Rules Hungary — https://www.playroll.com/compliance-hub/hungary — accessed 2026-04-10

8. 待確認事項

• 🟡Whether the pre-retirement severance bonus tiers (1–3 months) are calculated based on proximity to pension age or service years
• 🟡Court statistics on reinstatement orders vs. compensation-only outcomes
• 🔴Any pending amendments to the Labour Code affecting termination provisions