Hungary

Bellak & Partners

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Overview

Hungary has implemented the following directives with the Act CXXV of 2003 on equal treatment and the promotion of equal opportunities:

  • Council Directive 76/207/EEC of 9 February 1976 on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions
  • Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security
  • Council Directive 86/378/EEC of 24 July 1986 on the implementation of the principle of equal treatment for men and women in occupational social security schemes
  • Council Directive 86/613/EEC of 11 December 1986 on the application of the principle of equal treatment between men and women engaged in an activity, including agriculture, in a self-employed capacity, and on the protection of self-employed women during pregnancy and motherhood
  • Council Directive 97/80/EC of 15 December 1997 on the burden of proof in cases of discrimination based on sex
  • Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin
  • Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation

There are no other regulations in Hungary in force.

The Equal Treatment Authority (hereinafter: the Authority) was established by Act CXXV of 2003 on equal treatment and the promotion of equal opportunities as set in the Government Decree No 362/2004 (XII.26.). The Authority started its work on the 1st February 2005. It is an independent organisation, which was set up by the Hungarian Government to receive and deal with individual and public complaints about unequal treatment and to implement the principles of equality and non discrimination.

Who’s covered?

The principle of equal treatment must be observed by:

a) the Hungarian State,

b) local and minority governments and all bodies thereof,

c) organisations exercising powers as authorities,

d) armed forces and policing bodies,

e) public foundations, public bodies,

f) organisations performing public services,

g) institutions of elementary and higher education (hereinafter collectively: educational institutions),

h) persons and institutions providing social care and child protection services, and child welfare service,

i) museums, libraries, elementary educational institutions,

j) voluntary mutual insurance funds, private pension funds,

k) entities providing health care,

l) parties, and

m) budgetary organs that do not belong to points a)-l)

in the course of establishing their relationships, in their relationships, in the course of their procedures and measures.

What enforcements/remedies do exist?

Each person has right to lodge a complaint to the Authority about the violation of equal rights.

What decisions are made by the Authority?

If the Authority has established that the principles of equal treatment have been violated, they may

  • order that the situation constituting the violation of law should be stopped,
  • prohibit the continuation of the violation of law
  • publish its decision establishing the violation of law
  • impose a fine from fifty thousand to six million HUF

Damage can only be awarded by the court. To get compensation the victim has to sue the violator in the court.

How common are claims?

During the one year of its operation the Authority received about 500 complaints, the majority of them were ethnic discrimination. The equal rights of people were mostly abused in employment. The Authority has established the violation of equal treatment in 9 cases, the parties made an agreement with the help of the Authority in 6 cases, in 3 cases a fine was imposed against the disriminator, in 125 cases no discrimination was established and in 24 cases the Authority dissolved the proceedings, partly because the client withdrew the complaints, partly because paralell with the Authority’s procedure the case was at court on the same ground.

The claims are not common in Hungary, employees are not aware of their rights.

What claims are most common and what are trickiest issues for employers?

The most common cases of discrimination are cases of national or ethnic belonging, there are a few cases of age discrimination. Most of the claims are brought by old age people who were not hired or dismissed because of their age. Frequently also in job advertisements the employers request employees under a certain age.

Are there any specific exceptions in your laws?

T he provisions of the Act on Equal treatment do not apply to family and private life and relationships directly connected with the activities of the religious life of the Churches, relationships of parties except for the political or other opinion, relationships between the members of legal entities and organisations without a legal entity, relationship related to membership, except for the establishment of membership.

Retirement ages

Although the employer can never force an employee to retire the Hungarian Labour Code considers the employee who has reached the age necessary for the retirement (generally 62 years old) and has the necessary service period (generally 20 years) a retired person, even if the employee is not officially a retired person. Different rules are applicable for retired employees, as they can be dismissed without any justification and there are not entitled to severance payment.

Interesting cases

  1. On 15th December 2003 a civil servant of over 50 was made redundant because the Government made a decision about cuts in civil service. The Authority has to dismiss the case, because the Act of the principle of equal treatment was not in force yet.
  2. The mayor office of a village dismissed a civil servant with a working capacity reduced by 67 percent but before that time they employed an other civil servant with working capacity by 50 percent. The claimant turned both to the Authority and the Labour Court at the same time asking them to statue that he was a victim of violation of equal treatment, because the employer’s reason for his dismissal was that he was given pension. The Authority had to dismiss the case because the discrimination was being investigated by the Labour Court.
  3. The Authority established the violation of the principle of equal treatment and imposed a fine of Huf 450.000 on a travel agency employed 4 new people who were about 30. The reason for the violation of equal treatment was the age of the dismissed people.
  4. A regional branch of a state financial institution’s civil servants turned to the Authority with their complaint because only middle aged graduated civil servants were the victims of the lay-offs in 2004. The clients also objected to the way the chief administrator of the supervisory authority wanted to cut the number of the staff: in a circular sent to the local authorities 90 % of HUF 164.000 was set as the minimal saving per capita stemming from the reduction. Defining this sum the graduate civil servants of the staff became the discriminated group. The Authority examined the principle of lay-offs and saw that the average sum was set in the circular with which all categories of civil servants could be affected. This is why the complaint was dismissed. It was also investigated if certain age groups were discriminated in the lay-offs. We examined the ages of the people made redundant. The data did not show any sign of discrimination. Although all the dismissed civil servants were over 31 the proportion of people between 31 and 60 was 82,9 % in the staff. The case was dismissed as baseless.