HUNGARIAN LABOR CODE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700040075-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: October 28, 2011
• Sequence Number: 75
• Publication Date: January 25, 1952
• Content Type: REPORT

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CIA-RDP80-00809A000700040075-3
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CLASSIFICATION --~ LJII OFFICIAL I,'SE KY
CENTRAL INTELLLG REPOR
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS C21 NO. --
Monthly pert
Budapest
May 1951
Hungarian i
DATE OF
INFORMATION 9951
DATE DIST. I5~ Jan 1952
STAT
SUPPLEMENT TO
REPORT NO.
The Labor Code of 31 January 1951 is a significant step forward in the
development of socialist labor law. The code applies equally to all workers
and employers, removes distinctions between different types of workers, breaks
down the barrier between public employees and other workers, and contributes to
the elimination of bourgeois distinction between public and private law. There
are still some differences in the details of regulations relating to working
conditions of employees in public offices and those in enterprises. Separate
executive directives apply to enterprise, public, state railroad, and postal
employees.
The Labor Code provides that employment is regulated by laws, decrees of
lega_ force, collective contracts conforming tc 'egal decrees, official resolu-
tions, and work _-_.'ceases. It deals in detail with collective contracts, offi-
cial resolutions, and work processes. State organs fix work tasks and wages
with the cooperation of the National Council of Labor Unions or of the unions
concerned. The new system of collective contracts also guarantees workers an
active role in determining work tasks. The fixing of working conditions and
cages is an essential requirement of the work contract. This will undoubtedly
contribute to the reduction of labor disputes.
The new collective contracts are concluded by the enterprise director on
the one hand, and the shop committee representing the workers on the other; the
right of unions and ministries to draw up contracts is revoked. A collective
contract is effective only after it has been signed by the enterprise director
and the shop committee, jointly approved by the minister and the labor union,
and published in the Journal of the National Wages Committee (OMB).
The code allows for either oral or written agreements concerning employ-
ment, and authorizes the Council of Ministers to order the conclusion of a def-
inite form of work contract in individual branches of industry.
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e lower schooThealot rna$e lit for legal employment is 14 years or 12 years during
14-year-old ochild has the unlimited right to contract or
terminate employment. Up to 16 years, youths may be employed only in occupa-
tions which have been medically approved as not harmful to their physical or
intellectual development. "outhful workers receive preferential vacations.
The code introduces a new theory concerning the duration of employment,
with the creation of employment for a limited purpose, such as loading a barge,
or seasonal employment in a sugar factory. Workers can no longer be hired for
.as long as there is work during the year." The duration of probationary em-
ployment is also to be adjusted to the complexity of the occupation. General
probationary employment is to last 7 days, 30 days in more complex occupations.
The arbitrary discharge of employees and employment speculation resulting in
excessive labor migration have been checked by fixing the causes 'or termina-
tion of employment and requiring the reinsta .went of workers unjustly dis-
charged.
In a planned socialist economy, an enterprise must organize proc:uction in
the most favorable manner and must release superfluous workers to other enter-
prises. Enterprises may discharge consistently incompetent workers and workers
who cannot be utilized in their present occupation. On the other hand, a
worker may terminate his employment when required by his technical advancement,
because of his family or for reasons of health. Technical advancement and
Health are absolute reasons for termination, while the concurrence of the en-
terprise director is required in case of resignation for personal reasons.
There is no difference in the length of advance noci?e of discharge for manual
and intellectual workers. However, the Labor Code makes little provision in
this respect, since there is a manpower shortage, and a discharged worker may
find work easily.
Employers must gi a written notice of termination of employment, stating
the reason for discharge. Workers may resign orally. The limitations on ter-
mination of employment apply also to labor union members of the enterprise con-
ciliation committee, to give them job sec,rity while participating in labor
affairs, and to sick workers who are receiving compensation for illness.
The Labor Code permits termination of employment of workers hired for a
specific length of time or for the completion of a specific job because of in-
competence or if workers cannot be utilized in a particular occupation. Imme-
diate dismissal is limited to disciplinary cases. All state enterprises have
uniform disciplinary regulations, expected to save much superfluous discussion
and waste of time.
To avoid costly labor disputes, the Labor Code sets a time limit on pre-
senting complaints and for their solution. Negotiations for the entire person-
nel of an enterprise have been entrusted to the enterprise :onciliation commit-
tee, which consists of members of the enterprise directorate and of the shop
party committee who can easily get at the origin of a dispute and can reach a
sound solution. Other advantages are that convening the conciliation committee
for dellberati,;n on an issue involves no formalities, and the labor union also
takes part in the solution of disputes.
The above regulations apply also to the nonnationalized sector, with cer-
tain exceptions. The workers may resign without giving reason. In the nation-
alized sector, the Labor Code has revised the regulations governing immediate
resignations or dismissals. Previously, an unjustly dismissed worker could only
sue for damages. Under the present regulation, the worker may claim reinstate-
ment and may sue for back wages.
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STAT
.In conformance with the preo.ent situation, the Labor Code sets the general
working day at 8 hours and permits shorter hours for occupations w?'ich jeopar-
dize the health of the worker.
Workers receive regular, annual vacations. In contrast to past practice,
when all workers received the same vacation benefits, vacations will be adapted
to the type of occupation, occupational strain, and importance of his occupa-
tion to the state. Workers who work longer than the usual period will also re-
ceive special consideration. Accounting is simplified by counting vacation
time according to the calendar year, and not the service year, as before. Va-
cation time accruing for fractions of months will no longer be lost. Although
a worker can draw no vacation time during the first 6 months of employment, he
is entitled to vacation time before the end of the calendar year, even t:iough
the first 6 months may not be completed by ?;,en.
In addition to the 12-day-base vacation per year, youth workers receive
6-12 working days bonus vacation; miners working underground receive 3-12 days,
metallurgical-furnace bricklayers 12 days, workers employed in occupations
watch. constitute health hazards 3-12 days, directors, 6-12 days, and workers
not eligible for overtime pay, 3 days. Workers who have worked more than 2
consecutive years receive one additional day bonus vacation for every 2 calen-
dar years, and one day for every 3 years worked before 1945. A worker may
claim bonus vacation time for only one category. Thus, the director of an en-
terprise may not claim the 3-day bonus due to workers who do not receive pay
for overtime nor bonus time for working more than 2 years with the same enter-
prise, if he claims the 6 days' extra vacation due him as enterprise director.
However, if he has been with the same enterprise for 20 years, he may choose to
take the longer extra vacation due on that account, instead of the 6 days al-
lowed to him as enterprise director.
Miners, metallurgical workers, and workers whose occupations constitute a
hazard to their health receive bonus vacation time for continuous work, as well
as the bonuses due to their particular occupations, up to a total of 12 addi-
tional days. Thus, an underground miner receives 6 days extra because of his
occupation, and if he has been employed since 1945, he receives 3 ad '.tional
days, making a total of 9 days' bonus vacation.
If a worker has taken his entire vacation for the year in advance, and is
discharged or transferred before the end of the year, the unearned.vacation
time already used is deducted from the vacation time accruing for the remainder
of the year at his new place of employment. For example, if a worker draws 9
days' vacation in May and is discharged in June, he has taken 2 days' unearned
vacation for the year. If be is employed by another enterprise on 1 August,
his 2 days' overdrawn vacation is deducted from the time accruing at the new
enterprise, and he receives only 3 :ays' vacation for the remainder of the year.
Conforming to the constitution, the Labor Code fixes the principle of the
rate of pay according to quantity and quality of work, extends the premium sys-
tem, encourages worker training, and rewards good work. The code also states
that there is to be equal pay for equal work, and that there is to be no dis-
crimination in the pay of men and women or adults and youths in the same occu-
pation. The above regulations form the basis of Hungary's wage policy. Piece-
work and the premium-system of payment to shop and administrative workers are
covered in Decree No 13, of the Council of Ministers, dated 10 May 1950.
An enterprise director is empowered to order transfers of personnel.
Transfers between two enterprises may be made by the joint supervisory organ
(center or ministry) and transfers between two ministries, by the ministers.
Generally, workers must be given 14 days' notice before transfer. A worker
has the right to protest when the transfer involves moving to another locality,
reduction in status, or if the worker is engaged in college studies or is a
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student in the workers' high school. In the above cases, the worker is not re-
quired to accept the new position unless it is ordered by the conciliation com-
mittee. Failure of the worker to comply with the order is considered an imme-
diate, voluntary resignation. Decree No 34 of the Council of Ministers, dated
31 January 1951, issued simultaneously with the execution of the Labor Code,
lists in detail the compensation due to transferred personnel.
Enterprises are required to contribute to the creation and maintenance of
welfare, health, and sport institutions of the workers, provide shop cafeterias
where possible, and extend aid and pay advances to workers under circumstances
described in the code.
The National Council of Labor Unions id responsible for organizing workers'
vacations; it is given financial aid by the state. An enormous sum has been in-
cluded in the 1951 budget for workers' vacations. With ;,his aid, workers suffer-
ing fzom occupational diseases or exposed to occupational health hazards, youth
workers, Stakhanovites, and other outstanding workers will receive free vaca-
tions.
The Labor Code contains detailed regulations concerning the protection or
workers' health and physical cordition through safe working conditions and con-
stant medical attention. The code prescribes preliminary safety measures for
new plants and new-type machines, and requires enterprises to maintain adequate
dreesing, washing, and bathing facilities, to provide appropriate safety devices,
including medicat'.on, safety clothing and, when necessary, work clothes. Workers
exposed to hazardous health conditions must have regular medical examinations,
and if working conditions are hygienically harmful, the condition is to be elimi-
nated or the worker transferred to another position. Safety regulations are
drawn up jointly by the National Council of Labor Unions and the Ministry of
Health. Within the enterprise, tht shop committee has control of safety regu-
lations.
Women in industry may not be employed in physically harmful occupations.
Pregnant women and nursing mothers cannot be employed for heavy physical work,
night work, or overtime. An expectant mother may not be discharged between the
6th month of her pregnancy and the 3d month following the birth of the child.
A mother is allowed 12 weeks' leave for childbirth, and mothers at work, who
keep their babies in the enterprise nursery or on the enterprise premises, are
allowed to nurse their babies on company time.
The Labor Code emphasizes that work dtscipline should be conscientious and
voluntary, and states the principle that the purpose of the punishment should
be education. Rewards as well as compulsory measures are available for educa-
tion in connection with work discip_ine.
With the new relationship of the worker to his work in the socialist state,
tools and supplies are no longer considered symbols of capitalist oppression,
and fines for damages protect the interests of the working class.
The Labor Code contains many provisions for furthering the technical qual-
ifications of workers, including organization of technical schools and courses,
and it is a special responsibility of enterprise directors to further and sup-
port the technical training of workers. The individual worker is responsible
for communicating his successful work methods to his coworkers and for applying
the methods passed on to him.
Technical training is also furthered by allowing time during working hours
and special leave of absence for workers engaged in studies.
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