Employees’ Rights in Case of a Transfer of Undertaking
In the case of a transfer of undertakings, the successor employer must retain and continue employing all employees of the economic unit under the original working conditions. The fact of the transfer alone cannot serve as grounds for termination by either the predecessor or the successor employer. Employee consent is not required for the transfer. Hungarian labour law does not recognise the employee’s right to object to the transfer.
If, as a result of the transfer, the working conditions change significantly and to the employee’s disadvantage, the employee may terminate their employment relationship with justified notice within 30 days of the transfer. In such cases, the employee is entitled to all benefits they would receive in the event of termination by the employer, such as an extended notice period or severance pay.
