Medical examination of new hires
Before employment begins, new hires must undergo a medical examination and each year after that. A doctor may determine a more regular cadence. Employers cover the expenses for the examinations.
Occupational safety and health training
The employer must conduct health and safety training at work, and all employees must participate. Such training has to happen during working hours at the employer’s expense and should be described and organized in written form.
The following are the types of routine training:
Situations when extraordinary training is conducted:
Training should be done by either the direct supervisors in the company or qualified specialists.
All documentation regarding health and safety at work is kept on record for a minimum of five years.
Employers who fail to comply with health and safety regulations are fined in the range of HUF 50,000 (around EUR 123) to HUF 10,000,000 (around EUR 24,640).
Company’s social and other benefits
The employer funds social, welfare, and cultural services to benefit employees and their families.
The funding can be used for the following, which is decided at the general meeting:
Additional days off
Some companies give their employees three–seven additional paid days off (which can be conditional on the length of service with the same employer).
Supplementary health insurance
Many employers offer their employees additional health insurance and access to medical facilities and specialist examinations.
Supplementary life insurance
Some companies offer life insurance plans to their employees.
Companies commonly use cash bonuses to encourage employees.
Some companies offer flexible working hours. Now, it’s common for many tech/IT/outsourcing companies to offer a home office option.
Some companies reimburse telephone costs and/or offer mobile phones for their employees.
Depending on the type of employer, employees may be provided with company hardware, such as a laptop, computers, and accessories.
Multisports cards are a very common benefit for employees.
Meals and drinks can be offered at the cost of the employer.
Referral programs are a common way to encourage employees by means of giving out cash bonuses.
Hungary has no specific legal regulations for employee stock options; therefore, the general rules of the Civil Code are applicable. However, some companies offer shares (call option regarding shares), and the terms and conditions for such stock options are usually regulated in a stock option agreement.
If the stock option program does not result in the issuance of actual shares (i.e., phantom share program), a cash settlement is carried out, with no regulatory filing required in respect of the award. Conversely, regulatory filing may be required if actual shares are issued in a stock option program.
Taxation-related aspect of stock options should be evaluated on a case-by-case basis due to the lack of a specific regulation.