Protection of Wages Convention, 1949 (No. 95) - Hungary (Ratification: 1956)

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Article 4(2) of the Convention. Partial payment of wages in kind. Further to its previous comments on this matter, the Committee takes note of the Government’s reply in its report.

Article 8. Deductions from wages. The Committee notes that in reply to its previous comments on this matter, the Government indicates that the part of wages which may not be subject to deductions in application of section 161(2) of the Labour Code (which allows deductions based on the employee’s consent or for the repayment of advances to the employer) corresponds to an amount of wages that must be available for the employee to make a living. In particular the Government refers to section 161(2)(a), according to which deductions can be made up to the “deduction-free part” of the wages based on the employee’s consent. The Committee requests the Government to indicate how this “deduction-free part” of the wages is legally defined.

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Article 4(2) of the Convention. Partial payment of wages in kind. The Committee recalls its previous comment in which it requested the Government to specify how it is ensured that allowances in kind are attributed a fair and reasonable value, as prescribed by this Article of the Convention. In its latest report, the Government indicates that the partial payment of wages in the form of allowances in kind occurs extremely rarely and that, in any event, the labour inspection services may control whether benefits in kind correspond to the needs of employees and their families and whether their value exceeds 20 per cent of the agreed cash wages. In this regard, the Committee wishes to recall paragraph 159 of its 2003 General Survey on the protection of wages in which it pointed out that setting an overall limit on the proportion of the money wages which may be replaced by benefits in kind does not in itself resolve the problem of the fair valuation of such benefits and offers little protection to workers from possible exploitative practices. Such limits alone cannot guarantee that allowances are not overvalued to the detriment of real earnings of workers. The Committee wishes also to refer to paragraphs 154–158 of the same General Survey which highlight possible ways for ensuring conformity with the requirements of the Convention (e.g. allowances to be valued at cost prices, or allowances not to exceed ordinary market value, the value of certain goods or services to be fixed by law, etc.). The Committee notes, however, that the new Labour Code, which was adopted on 13 December 2011, in particular sections 154–164 referring to protection of wages, does not appear to contain any provision expressly authorizing, or prohibiting, the partial payment of wages in kind. The Committee accordingly requests the Government to provide additional explanations in this respect.

Article 8. Deductions from wages. The Committee recalls its previous comment in which it drew the Government‘s attention to the fact that the Convention recognizes only national laws or regulations, collective agreements and arbitration awards as legal bases for lawful deductions, it being understood that deductions made on any other basis, such as deductions by virtue of individual agreement or merely with the consent of the worker, are not in conformity with the requirements of the Convention. In its latest report, the Government states that a revision of the provision of the Labour Code according to which employees may authorize wage deductions is pending. Noting that section 161(2) of the new Labour Code authorizes employers to proceed to deductions from wages based on the employee’s consent, the Committee requests the Government to keep the Office informed of any progress made in this respect and to transmit a copy of the revised text once it is adopted.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Repetition

Article 4(2) of the Convention. Partial payment of wages in kind. The Committee notes the Government’s indication that, under section 154(2) of the Labour Code, the payment of wages in the form of commodities or services may be permitted provided that such allowances in kind meet the needs of the worker and his/her family, that in-kind benefits do not exceed 20 per cent of the wage specified in cash, and that alcoholic beverages or other commodities detrimental to health are not provided as part of wages in kind. Recalling that the Convention further requires that: (i) the payment of wages in the form of allowances in kind may be authorized only in industries or occupations in which the payment of wages in kind is customary or desirable because of the nature of the industry or occupation concerned; and also that (ii) appropriate measures have to be taken to ensure that the value attributed to the allowances in kind is fair and reasonable, the Committee asks the Government to specify how these requirements are complied with in law and practice. The Committee draws the Government’s attention, in this respect, to the General Survey of 2003 on the protection of wages, paragraphs 92–160, which reviews relevant state practice and illustrates possible ways in which legislative conformity may be ensured on this point.

Article 8. Deductions from wages. With regard to the Government’s indication that wage deductions may be made on the basis of the employee’s consent, the Committee notes that deductions from wages may be made only under conditions and to the extent prescribed by national laws or regulations or fixed by collective agreement or arbitration award, but not by individual agreements. The Committee refers to its General Survey of 2003, paragraph 217, in which it considered that the Convention seeks to prevent “private” arrangements which might involve unlawful or abusive deductions to the detriment of the workers’ earnings, and took the view that provisions of national legislation which permit deductions by virtue of individual agreements or consent are not compatible with this Article of the Convention, unless of course the national legislation specifies in a detailed and exhaustive manner the types of deductions which may be permitted on the basis of individual consent. The Committee requests the Government to provide additional explanations in this regard.

Article 15(c) and Part V of the report form. Practical application. The Committee notes the information provided by the Government on the organization and operation of the labour inspection services. It also notes the statistical data on the number of inspection visits and the results obtained in the period 2002–05. It would appreciate if the Government would continue to provide all relevant information on these matters.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the information provided in the Government’s report and the attached documentation.

Article 2 of the Convention. The Committee notes the Government’s indication that, as of May 2000, the scope of application of the Labour Code (Act XXII of 1992) has been extended to cover two atypical forms of employment, i.e. temporary workers and teleworkers.

Article 4, paragraph 2. The Committee notes the Government’s indication that, under section 154(2) of the Labour Code, the payment of wages in the form of commodities or services may be permitted provided that such allowances in kind meet the needs of the worker and his/her family, that in-kind benefits do not exceed 20 per cent of the wage specified in cash, and that alcoholic beverages or other commodities detrimental to health are not provided as part of wages in kind. Recalling that the Convention further requires that: (i) the payment of wages in the form of allowances in kind may be authorized only in industries or occupations in which the payment of wages in kind is customary or desirable because of the nature of the industry or occupation concerned; and also that (ii) appropriate measures have to be taken to ensure that the value attributed to the allowances in kind is fair and reasonable, the Committee asks the Government to specify how these requirements are complied with in law and practice. The Committee draws the Government’s attention, in this respect, to the General Survey of 2003 on the protection of wages, paragraphs 92-160, which reviews relevant state practice and illustrates possible ways in which legislative conformity may be ensured on this point.

Article 8. The Committee notes that deductions from wages may be made only under conditions and to the extent prescribed by national laws or regulations or fixed by collective agreement or arbitration award, but not by individual agreements. The Committee refers to its General Survey of 2003, paragraph 217, in which it considered that the Convention seeks to prevent “private” arrangements which might involve unlawful or abusive deductions to the detriment of the workers’ earnings, and took the view that provisions of national legislation which permit deductions by virtue of individual agreements or consent are not compatible with this Article of the Convention, unless of course the national legislation specifies in a detailed and exhaustive manner the types of deductions which may be permitted on the basis of individual consent.

Article 15(c) and Part V of the report form. The Committee notes the information provided by the Government on the organization and operation of the labour inspection services. It also notes the statistical data on the number of inspection visits and the results obtained in the period 2002-05. It would appreciate if the Government would continue to provide all relevant information on these matters.

Direct Request (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee notes the Government’s report and the information concerning Act LIII of 1994 on distraint by court and Act LXXV of 1996 on labour inspection. It also notes with interest the Government’s reply to the Committee’s earlier direct request, in particular with respect to Articles 1, 6, 7, 8, 10 and 15(b) and (d) of the Convention.

Article 2. The Committee notes that the copy of Government Order 24/1994 (II.25) on the employment of outworkers to which the Government refers in its report has not been received. It asks the Government to supply a copy of the Order in question.

Article 4. The Committee recalls that under the terms of the Convention the partial payment of wages in the form of allowances in kind may only be exceptionally authorized in industries or occupations in which payment in the form of such allowances is customary or desirable because of the nature of the industry or occupation concerned and that, in the case of such authorization, appropriate measures must be taken to ensure that the value attributed to the allowances in kind is fair and reasonable. The Committee would appreciate the Government’s providing additional information on the manner in which those principles are given effect in practice.

Article 15(c). The Government refers to article 3(g) of Act LXXV of 1996 on labour inspection conferring responsibility to labour inspectors for ensuring compliance with laws and regulations regarding protection of wages. The Committee would be grateful if the Government could provide a copy of the above Act and also continue to supply up-to-date and concrete information on all aspects of enforcement of the laws giving effect to the provisions of the Convention, including methods of supervision, penalties prescribed, infringements observed and sanctions imposed.

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes the Government's report as well as the new Labour Code (Act No. XXII of 1992) and the Act No. IL of 1991 concerning bankruptcy procedure, liquidation procedure and final settlement. It requests the Government to provide information on the following points:

Article 1 of the Convention. The Committee notes that no provision in the Labour Code defines the term "wage". It asks the Government to indicate what is meant by the term "wages" in the provisions on the protection of wages in Part III, Chapter VII of the Code. Please specify if the definition is found in any legislative provisions.

Article 2. Please supply a copy of any regulations adopted under section 203(2)(a) concerning "outside workers".

Article 4(2). Please indicate the measures taken to ensure that the value attributed to allowances in kind is fair and reasonable.

Article 6. Please indicate the measures taken to prohibit the employer from limiting in any manner the freedom of the worker to dispose of his wages.

Article 7. Please indicate whether the practice of works stores exist in the country, and if so, also the measures taken to give effect to this Article.

Articles 8 and 10. The Committee notes that under section 161(3) of the Code, deductions from wages should be governed by the provisions of the Act applicable to distraint and that, under section 164(2), the portions of wages free from deductions may not be assigned. Please supply a copy of the Act applicable to distraint as well as an indication of the limits and conditions prescribed with regard to deductions, attachment and assignment of wages.

Article 15(b) and (c). The Committee notes that the Code does not contain provisions on the persons responsible to comply with it or on the penalties for its violation. Please provide information in this respect.

Article 15(d). The Committee notes that section 160 of the Code stipulates that a wage record should be provided to the employee. Please indicate whether such a record is also to be kept by the employer.