Nevertheless, it is essential to carefully consider before taking economical decision that Hungary currently has an extraordinary legal order, which even allows for immediate legislation. In order to comply with the latest measures and to take advantage of all the possibilities available for your business, it is worth asking for professional help.
Regarding this situation, we have arranged a special expert advisory group of LeitnerLeitner lawyers, tax advisors, payroll and social insurance professionals, in order to provide appropriate solutions to the payroll accounting services-, labour law- and other finance related problems.
Economy protection – action plan
According to the Gov. decree Nr. 47/2020 from the 18th of March 2020 related to the economical domain the handling, respectively the reduction of the occurring negative effects caused by the virus has already been started at several points. Several government decrees are expected in the upcoming days and weeks, they will bring changes in the position of economic operators, employers and employees.
Measures in sectors affected by the epidemic
In sectors already affected by the epidemic: i.e. tourism, hospitality, entertainment, gambling, film, performing arts, event organizer and sports services, the employers and employee’s public payment obligations has changed as follows:
- After existing employment employers have no obligation to pay public duties, the social contribution tax of 17.5% and the training contribution of 1,5% has been suspended.
- Employees only have to pay the health insurance contributions of 4%, which is limited to monthly amount of max. HUF 7.710. According to this, the employees’ monthly net income increases by 14,5% at least.
- The changes named above are affecting also the wages to be paid for March.
- In these sectors, the lease contracts cannot be terminated or the lease fee cannot be increased until the 30th of June 2020, even if otherwise permitted by the contract.
- There is no payment obligation between the 1th of March 2020 and the 30th of June 2020.
Working from home, facilitating home office order
For 30 days following the cessation of the current emergency period, an employer can unilaterally order remote work or telecommuting for an unlimited period – without any changes in the work contract, namely without the additional contribution of the employee for the prolongation of the ordered home office occupation.
In addition, changes in working time arrangements can be made more flexible (the 96-hour rule has been abolished) and the employer has the right to take measures to monitor the health of workers for health reasons.
Collective agreements may not derogate from these measures within the scope of the Decree.
Quarantined workers / Employees in illness
If the employee becomes ill, he/she is entitled to sick leave.
If the employee is quarantined, namely he/she is monitored due to the epidemic either at his/her home or in a medical institution, or he/she is working in a sector that is affected by a potential epidemiological closure of his business, he/she is entitled to sickness benefits (cash-benefits). This case falls under the so-called No. 7. Code indicating the incapacity for work, according to which there is no obligation for the employers to pay 1/3 of the sickness benefit. Ergo, the employer has no paying obligation at all. The epidemiological closure can be ordered by the Director-General of National Medicine for a defined area. Please note, that this rule does not apply to voluntary precautionary quarantine.
Employees over the age of 70
Given that they are primarily the most vulnerable group of the epidemic disease, the Government “asks” all people over the age of 70 not to leave their homes.
Thus, under certain conditions in the case of employing workers over the age of 70, an employer may breach the convention of the Employment law, according to which the employee may be employed only for work which, in view of his/her health may not have adverse consequences. In other words, the employer is basically unable to employ the employee and cannot fulfil the obligations arising from the employment contract. In such a case, it is possible to take steps to order home office work, to take annual leave, to take unpaid leave, or as a final solution to terminate the employment relationship.
Debt moratorium
Due to the emergency, the Government has suspended repayment obligations of capital, interest, and additional payment obligations of loans, borrowings, credit agreements and leases concluded before the 18th of March 2020 up to the date of 31th of December 2020 both in cases of individuals and companies. There is to be mentioned, that the original term of the respective credit agreement will be extended with the duration of the debt moratorium period. Certainly, the debtor retains the right to continue by its own decision repaying during the debt moratorium period.
Shorter business hours
Since 17th of March 2020 the stores has to close at 15 pm, and only the employees (e.g. replenishment, store cleaning, etc.) may stay in the shops. Except:
- grocery stores
- store units selling perfumes, drugstore products, household cleaners, chemical products and hygiene papers
- pharmacies
- medical aids distributors
- fuel stations
- tobacco stores.
Catering shops (with ready-made or on-site meals, beverages typically for on-site consumption, including related entertainment and other service activities) also may be open only till 15:00 pm, after this only the employees stay in the shop. Buyers are also allowed to stay there for a limited period of time when ordering and taking over the food and paying the purchase price.
Violations and Sanctions
According to the Government Regulation, a violation occurs for instance by staying on the territory of a grocery store or other store at an unauthorized time or in an unauthorized manner. The penalty of such an event is a fine of between HUF 5,000 and 500,000 (approx. EUR 14-1,420).
School and public education closing
As of the 16th of March 2020, primary and secondary education institutions have been closed for an undefined period; from this week also kindergartens and crèches will be closed gradually. Digital schooling started from home.
In case the parent is otherwise unable to take care of the child and is therefore unable to take up work, it is to be considered as an incapacitated status under current law. At the same time this status is not to be paid by the employer, nor does it imply the entitlement for sickness benefit.
LeitnerLeitner
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Telephone: +36 1 279 2930
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Email: office@leitnerleitner.hu
Web: http://www.leitnerleitner.hu/
