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← Overview Database of Innovative Social Policies in Europe

Labour Code

Country of implementation
General short description of the innovation
The new Labour Code (published in the Hungarian Official Gazette No. 2 of 2012 on 6 January 2012) entered into force on 1 July 2012, on the 20th anniversary of the implementation of the 1992 Labour Code No. XXII. There is a significant policy change in the new Labour Code, when compared to the previous Code. The new Code aims to adapt to the needs of the employment market, reflecting the trend for flexibility in EU labour regulation. To increase the flexibility of the labour market, a new Labour Code (in effect from July 2012) promotes flexible forms of employment and flexible workplaces, ease the return of young parents to the labour market and support companies to flexibly adjust working hours. Employers should employ part-time employees with a child under 3 returning from parental leave upon request of the employee. There is a contribution allowance available for employers after the employment of those returning from parental leave. The new features of the Labour Code include among others the extension of trial period for new employees from 3 to 6 months; enhancing the flexibility of working time by extending the possibilities of short-time and overtime; the employer¡s unilateral discretion to offer paid leave instead of complement for employees working extraordinary overtime. The expectation of the government is that the law will make employment more flexible, cheaper and more market-compliant.
Target group
Total Population
Policy Field
  • employment
Type of Policy
  • public
Duration of the policy
Entered into force on 1 July 2012
Scope of innovation
  • Scope: structural
  • Budgets: not interpreted
  • Number of intended beneficiaries: The whole population
  • Spatial coverage: national
General description of (intended) objectives and strategies
The expectation of the government is that the law will make employment more flexible, cheaper and more market-compliant.
Nature of the innovation-long-term perspective
long term
Type of ideal-typical strategy for the innovation
  • typical strategy for the innovation (optional; according to Obinger)-liberalisation
Type of innovation
  • new policy, practice or measure
New outputs
  • bargaining
  • governance
  • leave schemes
  • regulations of the labour market
  • working time
Intended target group
Population connected to labour market
Working age population
  • main source of income: paid work
Employers-private institutional actors
every employer
Actors involved in policy-making/implementation and/or evaluation
  • making/implementation and/or evaluation-agency or national social insurance body
  • making/implementation and/or evaluation-central state
  • making/implementation and/or evaluation-employees (organised or individual)
  • making/implementation and/or evaluation-employers (organised or individual)
  • making/implementation and/or evaluation-private for-profit organisations (commercial)
Intended output
  • bargaining
  • governance
  • leave schemes
  • regulation of the labour market
  • wages
  • working time
Intended and unintended outcomes
not interpreted here
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The new Labour Code aimed to create a more flexible labour market and enhancing labour market participation. / /
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