Problems relating to Trade and Investment on Hungary
16. Employment |
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Issue |
Issue details |
Requests |
Reference |
| (1) Overly Protected Workers | - In addition to regular paid leave, employers grant long-term sick leave with guaranteed reappointment, maternity or childcare leave both of which are recognised as workers' entitlement. Moreover, with the home-doctor's certificate, it has become customary for workers to exhaust in full all entitled paid leave. Employment of substitute workers to fill the long term leave workers and problems over continuity of work induces decline in productivity. | - It is requested that GOH takes a drastic review over the employment scheme. | - Labour Act |
| (2) GOH's Compulsory Wage Raise Measures | - To compensate for reduction in personal income from repeal of tax deduction under the personal income taxation system, GOH has recommended the statutory minimum wage and wage raise for employees with monthly revenue of less than HUF210,000. The failure to observe this recommendation results in the loss of qualification to bid for the government tender, and to receive government subsidies. This is nothing but GOH's compulsion of wage raise, diametrically opposed to the private enterprises' efforts to preserve employment by securing business for government procurement and subsidies. | - It is requested that GOH refrains from executing the measures in its recommendation. | |
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