Increased occupational health and safety and labour fines in Hungary – inspections to be expected?

At a glance

• As of 1 March 2024, occupational health and safety (OHS) and labour fines have been significantly increased.
• The fines which are imposed by the OHS Authority, have doubled.
• Labour inspections are also expected to become more frequent as fines are increased.

Background

One of the fundamental obligations of employer’s is to ensure health and safety in the workplace. Specific obligations are set out in the relevant regulations. The OHS Authority can fine employers who fail to comply with health and safety obligations, putting the life, physical integrity or health of their employees at risk. On 1 March 2024, the minimum OHS fines were raised to HUF100,000 (EUR250) for each employee whilst the maximum limit increased to HUF100 million (EUR250,000).

Labour fines have also been increased. The labour authority carries out general labour inspections and issues sanctions for breaches (including the failure to properly register employees, disregarding working time restrictions or a reclassification of a contractor relationship to employment) in the form of fines. On 1 March 2024, the minimum labour fines were increased to HUF150,000 (EUR400). The maximum fine increased to HUF20million (EUR50,000) for medium-sized businesses and to HUF25 million (EUR65,000) for businesses with a headcount of 250 or more employees. The actual fine rates may vary depending on the size of the company.

Takeaways for employers

The increase in penalty fines indicates that labour and OHS inspections may start to occur more frequently. Employers should be prepared for these inspections, and as part of the preparation they should review and, if necessary, improve their practices to comply with the relevant obligations.