As businesses strive to remain competitive, many employers in Hungary turn to working time frameworks (munkaidőkeret) to maintain flexibility in staffing. However, this solution can be a legal minefield if not managed correctly. The National Employment Inspectorate frequently reports violations in this area, with significant consequences for employers. Here, we break down the essential rules for effectively and lawfully applying a working time framework in your organization.
A working time framework allows for the allocation of regular working hours in a way that deviates from the standard Monday-to-Friday schedule. This setup is outlined under the Hungarian Labour Code (2012, Act I), giving employers the flexibility to determine how employees’ working hours are distributed over a period of up to 4 months or 16 weeks. In some cases—like seasonal work or continuous operations—this can be extended to 6 months, and with collective agreements, even up to 36 months.
While this flexibility is invaluable for managing workflows and productivity, it is crucial for employers to comply with specific legal obligations to avoid penalties.
The first step for any employer considering this option is to define the duration of the working time framework. The law allows a maximum length of 4 months, though certain industries can go up to 6 months. If objective or organizational reasons support it, a collective agreement may allow up to 36 months. Employers should be meticulous in determining the appropriate duration, as missteps here can invalidate the framework and revert your workforce to a standard work schedule.
Once the duration is set, employers must also define the total working hours during the chosen period. Importantly, public holidays falling within the framework period should be disregarded when calculating working hours, ensuring that employees are not overworked. Additionally, it’s essential to clearly document and publish the start and end dates of the working time framework, along with the total hours employees are expected to work. Failure to do so can result in the framework being deemed invalid.
A common misconception is that wages can fluctuate based on performance or the number of hours worked within a specific month. However, under Section 156 of the Labour Code, wages should not fluctuate under a working time framework. Whether the employee works uneven hours across different weeks or months, they are still entitled to their base monthly salary. For hourly workers, wages are calculated based on the number of working days in the month, following the general work schedule.
When the working time framework or accounting period ends, the employer must ensure that all employees are compensated fairly. Any discrepancies in salary must be corrected in the next payroll cycle, ensuring that the total pay reflects the actual hours worked.
Employers looking to introduce or maintain working time frameworks must be diligent. While it offers flexibility, the process involves legal intricacies that, if mishandled, can result in penalties. Following these guidelines can help businesses avoid common violations and create a fair and compliant working environment.
At Passway, we can simplify your businesses by navigating the complexities of labor law and optimize their workforce management practices. Whether you’re setting up a new working time framework or reviewing your current one, we’re here to support you every step of the way.
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