Employment Termination and Notice Period in Hungary

When an employee would like to terminate the contract, the notice period in Hungary is 30 days. If the employer would like to terminate the contract with an employee, the notice period depends on the length of service. The notice period in Hungary for employers looks as follows: 

• After 3 years of service, five additional days’ notice is required.
• After 5 years of service, 15 additional days’ notice is required.
• After 8 years of service, 20 additional days’ notice is required.
• After 10 years of service, 25 additional days’ notice is required.
• After 15 years of service, 30 additional days’ notice is required.
• After 18 years of service, 40 additional days’ notice is required.
• After 20  years of service, 60 additional days’ notice is required.

The employer must justify the dismissals in writing. The reasons must be clearly specified, genuine, and substantial. The reasons for termination with notice may be related to the employer's conduct in relation to the employment relationship, the employee's ability, or the employer's activities. However, termination is restricted or forbidden during pregnancy or leave of absence taken without pay for childcare. 

Either the employer or the employee may terminate an employment relationship without notice if the other party willfully or through gross negligence commits a serious breach of material obligations under the employment relationship and engages in conduct that would make the employment relationship impossible.

The parties may also terminate the contract by mutual agreement, in which case the provisions of the Hungarian Labor Code do not expressly apply.