In order to integrate home office into the Hungarian legal system, the legislator chose the following solution. Instead of regulating it through new codification, the Labour Code (Act I of 2012) was amended, and the rules for one of its atypical forms of employment, teleworking, were expanded so that they could also apply to regular home office work.
According to the amendment, teleworking is no longer limited to work performed outside the employer's premises, but also applies when an employee performs part of their work at the workplace and part outside it, for example, from home. The terms “home office” and “teleworking” are essentially synonyms.
The current version of the Labour Code no longer distinguishes between computer-based and other types of work, meaning that home office can be introduced in any job that allows for it.
It is important that the employer and employee explicitly agree on teleworking in the employment contract. This rule is mandatory (peremptory), meaning the agreement is essential. Although the Labour Code does not explicitly require it, for long-term and smooth operation, an appropriate internal workplace regulation is also necessary.
In the case of teleworking, the employee can work at the workplace for no more than one-third of the workdays in a year. Therefore, at least two-thirds of their workdays must be spent working elsewhere, which, according to the Labour Code, can be anywhere as long as it meets health and safety requirements, which will be detailed later. The employer must define the place of work and the tasks, but micromanagement is excluded. The employer's right to supervise can be exercised remotely, via computer devices.
In the employment contract, the parties may mutually deviate from the basic rules. For example, they may agree on allowing one home office day per week, detailed task management, or in-person work. These rules are valid only if the parties have not agreed otherwise.
The amendment also responds to misunderstandings related to working time arrangements. Many employees working from home believed that home office work meant independence from the employer, allowing them to manage their working hours. The new wording of the Labour Code clarifies that home office does not automatically mean a flexible work schedule, although the parties may explicitly agree on this in the employment contract.
The Labour Code still stipulates that an employee working under a telework contract must be provided with access to the workplace and contact with colleagues, as well as any other information that other employees receive.
Special Occupational Health and Safety Rules
The amendment also affected the Occupational Safety Act (Act XCIII of 1993), particularly the rules concerning teleworking. Unlike the Labour Code, the Occupational Safety Act distinguishes between computer-based and other forms of telework.
For both types, the common rule is that home office work can take place using the employee's own work equipment, based on the agreement of the parties. First, the employer must carry out a risk assessment to ensure that the equipment meets the requirements for healthy and safe work. It will be the employee's responsibility to maintain the equipment.
In the case of computer-based telework, the employer must inform the employee in writing about the requirements for healthy and safe working conditions. The employee is free to choose the place of work, as long as it meets safety requirements.
This is unusual because traditionally, the location of work was based on mutual agreement between the parties. The new regulation has unilaterally entrusted the employee with the designation of the workplace, which could pose risks, such as the legal implications of working for foreign employers.
In the case of non-computer-based telework, the parties must agree in writing on the place of work. The employer must perform an occupational safety assessment in advance and conduct regular checks.
The monitoring of work in home office cases where computer-based teleworking is used can be done remotely, while for other forms of home office work, it must be done in person.
The “Utility Flat-Rate” Remains
The Personal Income Tax Act (PIT Act) has been amended to include the concept of the “utility flat-rate.” According to this, the employer may pay an employee working from home under a telework contract a fixed amount (HUF 20,000 per month in 2022), which is tax-exempt. Any amount above this limit may result in tax and social security contributions.
It is important to note that the utility flat-rate is not mandatory; it is simply an option. The employee is not automatically entitled to this benefit but can claim reimbursement for actual costs incurred, subject to providing receipts.
The utility flat-rate can be provided if the employee does not itemize specific costs, such as electricity or internet fees, or the depreciation of their personal equipment. If the home office does not last the entire month, the amount must be prorated based on the teleworking days.
The intersection of home office and the Labour Code, as well as the legal regulation of teleworking, has attracted increasing attention in recent years. The amendment of the Labour Code allows employers and employees to jointly decide on the location of work, including home office, which is a specific form of teleworking. When applying teleworking and home office, it is essential that the employment contract includes the agreement between the parties, as the relationship between the employer and employee is key to ensuring compliance with the rules.
The opportunities for home office and teleworking are thus closely related to employee rights and employer obligations. The employment contract makes it clear to both parties how the workplace, location of work, and work schedule can be structured. The employer must adhere to occupational safety regulations, while the employee must ensure that home-based work complies with workplace safety and health requirements. The location of work, whether at the workplace or in home office, plays a key role in adhering to the rules laid down in the Labour Code and the employment contract.
The new regulation incorporates the use of home office into the designation of the location of work, taking into account occupational safety requirements and the protection of employee rights. The rules for teleworking specify that the employer and employee must cooperate in compliance with the work schedule and location of work outlined in the employment contract. Adherence to occupational safety regulations is crucial, as the employer's responsibility does not diminish when the employee works from home. According to the Labour Code and occupational safety laws, the employer must ensure proper working conditions, and the employee must fulfill their duties at the location of work, including compliance with health and safety requirements.
The new labor law regulation builds the possibility of home office on the agreement between the employer and employee. Therefore, the employment contract includes the conditions for working from home, as well as the rules for teleworking and occupational safety. Under the new legislation, the protection of employee rights has also played an important role, ensuring that an employee working from home is provided with proper working conditions, while the employer must also be mindful of the utility flat-rate and work schedule provisions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
