Hungarian Steps Towards Freedom Of Contract

Since 1992, derogations have been allowed in individual agreements in favour of employees, with minor exceptions. The labour law reform of 2012 brought about the comprehensive reform of the hierarchy of labour law sources. As for individual agreements of the parties, the Labour Code retained the traditional rule of favourability, however, with a growing number and importance of exceptions allowing in peius derogations. Section II sets the scene by explaining the legal hierarchy of labour law sources, including derogations in collective agreements, agreements of the parties, and the meaning of the “more favourable rule.” Against this background, Section III delves into the core of the problem of waivability of employee rights by listing and evaluating the exceptions from the principle of favour. Section IV explains the special regimes for two groups of employees: Employees of public employers and executive employees have very different rules. Section V describes the temporary return to the absolute freedom of contract for all employees during the COVID state of emergency. Finally, in the Conclusion, I will argue that legislation has decisively shifted towards derogability of a growing number of employee rights on the dogmatic basis of return to freedom of contract, what has partly been counterbalanced by case law.