Impact assessment of the new Labour Code
Significant results have been achieved in preparing the impact assessment of the new Labour Code. Hungary’s new Labour Code that came in force in 2012, did not reach its initial aim to for making the labour market more flexible, increase competitiveness and employment level, although moderate increase in employment level in the private sector can be observed.
The unfavourable changes affected primarily workers employed by wholly or partly foreign owned companies. The sectors more affected are transport, storage and communication. According to our survey, Hungarian workers report that the effect of the Labour Code changes on their working life does not seem significant so far, but this can derive from the fact that changes on individual rights effect only a small group of workers related to for example to wrongful dismissal. When it comes to collective rights the detrimental effects of the Labour Code changes are much more visible. Trade unions working time off and protection have been decreased and new Labour Code introduced limited rights for consultation and information with no legal consequences. Trade unions are trying to make efforts to use even more efficient their remaining assets in the disadvantaged legal environment (tighter Law on Act on Strike, changing Labour Inspection, etc.) and to try to protect workers’ rights by collective agreements.
