Application of Special Teleworking Rules Extended
On February 23, 2021, the Hungarian Parliament extended the State of Emergency for an additional 90 days. According to the current timeline, it is set to expire on May 23, 2021.
As a result of the extension, the application of Government Decree No. 487/2020 (XI. 11.) on teleworking regulations during the State of Emergency will continue - meaning that employers and employees may deviate from the rules regarding teleworking set forth in Sections 197 of Act I of 2012 on the Labor Code and Section 86/A of Act XCIII of 1993 on Labor Safety, and the relevant provisions of Act CXVII of 1995 on Personal Income Tax. Any of these deviations will still require a mutual agreement between the employer and the employee.
The flexible rules of teleworking aim to protect companies and the Hungarian economy, as employers and employees are free to agree on the rules governing teleworking in a way which differs from the teleworking regulations of the Labor Code while the State of Emergency remains effective.
In accordance with the previous rules adopted in November 2020 when additional restrictions and regulations were published as a result of the State of Emergency, employers must notify all employees describing the conditions necessary to carry out their work and accordingly, employees must designate a teleworking location that meets the employers described conditions. Employees who are eligible to receive remuneration from their employers for their teleworking related expenses, and the parties have entered into an agreement with the specifics of the teleworking conditions and the expense reimbursement, may account up to 10% (ten percent) of the mandatory minimum wage per month (in 2021 this amount is HUF 16,740, or roughly USD 55) as an expense and report the same in their income tax return. Any amount exceeding the minimum wage cannot be accounted for as an expense. Employers can inspect whether the employee’s working conditions meet the conditions set out in the employer’s notification. It is important to emphasize that the inspection cannot be performed without prior notification or outside of normal working hours.