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Addition of new chapter on tele-work to the Labour Code - promoting non-standard employment

Country of implementation
Hungary
General short description of the innovation
Act XXVIII of 2004 on the Amendment of Employment-related Legislation (Labour Code, Act on the Personal Income Tax, Act on Labour Inspection, Employment Act), in force as of 1 May, 2004. According to the new legislation a tele-worker can be de?ned as an employee who carries out activities that fall within the scope of the enterprise, outside the premises of the employer, using ICT tools for both producing and sending the output.
Target group
Total Population
Policy Field
  • employment
  • general fiscal
Type of Policy
  • public
Duration of the policy
2004
Scope of innovation
  • Scope: structural
  • Budgets: n.a.
  • Number of intended beneficiaries: n.a.
  • Spatial coverage: national
General description of (intended) objectives and strategies
The main objectives of the government with the current measure was to introduce new forms of employment (i.e. telework) that would promote adaptability to changes on the labour market so that both employers and employees can respond in a flexible way to economic challenges, and to promote the employment of people with disadvantages on the labour market with special attention to those combining family and working life. / / Act XXVIII of 2004 on the Amendment of Employment-related Legislation (Labour Code, Act on the Personal Income Tax, Act on Labour Inspection, Employment Act), in force as of 1 May, 2004 deals with telework. According to the new legislation a tele-worker can be de?ned as an employee who carries out activities that fall within the scope of the enterprise, outside the premises of the employer, using ICT tools for both producing and sending the output. The Amendment of the Act on the Personal Income Tax defines the deductible expenses for tele-work with a view to promoting its spread, additionally special provisions on tele-work are added to work safety regulations. / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2005_onefile.pdf, p129 / /
Nature of the innovation-short-term perspective
New legislation on telework
Nature of the innovation-long-term perspective
To introduce new forms of employment (i.e. telework) that would promote adaptability to changes on the labour market
Type of innovation
  • new policy, practice or measure
  • other (new regulation, new definition)
New outputs
  • regulations of the labour market (legal introduction and new regulation of telework)
  • subsidies/tax-credits (deductible expenses for tele-work from personal income tax)
Intended target group
All workforce
Working age population
  • main source of income: paid work
Actors involved in policy-making/implementation and/or evaluation
  • employees (organised or individual) (affected by telework)
  • employers (organised or individual) (affected by telework)
Intended output
  • regulation of the labour market (legal introduction and new regulation of telework)
  • subsidies/tax-credits (deductible expenses for tele-work from personal income tax)
Did the innovation have any outcome related to job quantity?
higherdecreasing labour costshigher
Intended and unintended outcomes
24.5 thousands people (0.6% of employed) did tele-work on a regular basis (2002), and / another 41.5 thousands people (1.1% of employed) did tele-work occasionally. /
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The main objectives of the government with the current measure was to introduce new forms of employment (i.e. telework) that would promote adaptability to changes on the labour market so that both employers and employees can respond in a flexible way to economic challenges.
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