Hungary: companies allowed to unilaterally extend reference period for calculating working time to two years

Under Hungary’s labour code, the reference period for calculating average working hours in the event of unequal distribution of working periods over the year is a maximum of 16 weeks, except in specific cases (certain sectors) where it is 26 weeks. In order to extend the reference period to a maximum of 36 weeks, a trade union agreement is required. Now, under decree 104/2020 of 10 April, employers can unilaterally extend this reference period to a maximum of two years. A government spokesperson said that this amendment is aimed at making work organisation more flexible with a view to saving jobs. As such, companies will be able to plan work hours on the basis of a longer period and maintain salaries. For trade unions, these measures make employees of multinational companies more vulnerable and, over the next two years, such individuals may be forced to work overtime or at weekends to make up for the time lost during the health crisis. A reference period of one year could have been sufficient, according to Zoltán Lászlo, president of the metalworker union VASAS.