International Tax, Accounting and Advisory Firm in Hungary

Can an Employee Refusing COVID Vaccination Be Dismissed?

Can an employee refusing COVID vaccination be dismissed?

 

In Hungarian surveys concerning COVID vaccination, numerous respondents stated that they did not intend to be vaccinated against COVID. What are the possibilities of the employer if it imposes a vaccination obligation on its employees, but an employee refuses to be vaccinated?

The implementation of a healthy and safe workplace is the responsibility of the employer under the Occupational Safety and Health Act. Accordingly, the employer is obliged to take measures to protect workers and other persons in the workplace from COVID infection.

The above-mentioned safety measures include, in addition to complying with hygiene rules, the temporal and spatial segregation of workers, the introduction of a home-office, and regular testing. However, in some professions, the employer has always been allowed to require COVID vaccination even without a specific legal foundation, should this be essential for safety, such as for healthcare professionals working with immunocompromised patients.

COVID vaccination at the workplace can be made compulsory

Following a change in legislation introduced  in November 2021, all employers may oblige employees to take COVID vaccinations from now on. Workers who do not comply with the vaccination obligation can be sent on unpaid leave for up to 12 months, starting from 16 December 2021.

The employer is to inform the employee of the obligation of vaccination with a 45-day deadline. This may take place electronically, by e-mail or in writing. An employee who is not to be vaccinated for medical reasons and this is supported by a medical opinion is not obliged to take the vaccine.

If the employee does not comply with the vaccination obligation, he or she may be sent on unpaid leave for a maximum of 12 months, after which the employer may terminate the employment relationship with immediate effect.

Imposing a vaccination obligation is a serious interference with workers' right to self-determination, and the labor law consequences described above can lead to litigation. It is therefore worthwhile for employers to identify the jobs in which vaccination is made compulsory with the involvement of occupational safety and epidemiological (medical) experts.

Compulsory COVID vaccination for all citizens is still unlikely

We note however that at the moment there is no indication that new legislation will make COVID vaccination compulsory in Hungary, as this would be contrary to the constitutional right to self-determination as it is currently understood, which is a part of fundamental human rights. However, there seems to be a change in the way self-determination is construed, as several European countries have introduced mandatory vaccinations. In January 2021, the Hungarian Government announced that there would be no mandatory COVID vaccination. This political statement gains additional relevance in light of the next parliamentary elections taking place in 2022.

In April 2021, the European Court of Human Rights in Strasbourg passed a decision in the Vavricka Case, endorsing the general legal duty for parents in the Check Republic to have their children vaccinated against polio, hepatitis and tetanus. The said decision, supported by the interventions of France, Germany and Slovakia, may open a theoretical possibility for governments to make COVID vaccination obligatory, provided that it constitutes an appropriate and proportionate measure for the protection of the interests of society as a whole as opposed to the human rights of the individuals concerned. The decision of the Court was based on a case where the State did not have the right to use coercive force to vaccinate its citizens.

If you have any questions concerning the above, please do not hesitate to contact us!
© 2021 Gyarmathy&Partners    |    Tax, Accounting and Advisory Firm in Budapest, Hungary


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Accounting, Payroll, Registered Office

Outsourced accounting services

Businesses looking to permanently outsource their accounting and reporting functions can benefit from our full-scale, fully digitalized accounting solutions, including a wide range of professional services.

Our outsourced accounting services are built on three pillars:

  • Regular communication with an experienced, English-speaking chief accountant
  • Efficient reporting in the electronic format your company requires
  • Digital accounting platform for seamless financial management

Depending on your preference, we will maintain your accounts in HUF or any other functional currency such as EUR, USD, or CHF. We also manage all interconnected tasks arising from foreign currency accounting.

Our comprehensive accounting services include filing financial statements and registering your firm in the electronic systems of the Hungarian tax administration. We also prepare and submit your tax returns electronically.

If your company requires a tailored management information system in Hungary, we will adapt our services to align with your preferred accounting system, policies, and data format.

Digital accounting platform

Our fully digital accounting platform streamlines financial management for businesses of all sizes. With a cloud-based system, our clients can gain real-time access to their accounting data, ensuring accuracy, transparency, and efficiency. The integration of tax compliance features also ensures that businesses remain up to date with local regulations, avoiding costly penalties.

We will generate detailed financial reports tailored to our clients’ needs, a further useful function of our fully digital accounting system. These reports provide valuable insights into cash flow, profitability, and the overall financial status, enabling better decision-making.

Another key advantage is the flexibility of digital collaboration between our clients and their accountants. A centralized platform allows for efficient document sharing and direct communication with our financial professionals. This enhances workflow efficiency and ensures that accounting tasks are completed accurately and on time. Whether managing payroll, tax filings, or financial planning, our clients benefit from a reliable, secure, and scalable accounting solution tailored to their specific needs.

Seamless integration into your own ERP

We understand the importance of a smooth and efficient accounting process, also in cases when you wish your financial data to be integrated in your company’s own ERP-system. To ensure that financial data is seamlessly integrated into your ERP we handle the direct upload of your accounting data, eliminating errors and saving valuable time.

This automated process ensures that your company always has access to up-to-date financial records, improving accuracy and operational efficiency. Quarterly, monthly or weekly financial reporting enhances decision-making by providing your management team with precise, reliable insights.

Accounting systems, IFRS & US-GAAP

We tailor our accounting services to our clients’ needs—whether for permanent outsourcing or for temporary support until an in-house accounting department is established.

We provide expert accounting advice, especially valuable in the early stages of business operations. Our team also advises on implementation and compatibility related to IFRS, US-GAAP, and Hungarian Accounting Standards.

Accounting in EUR, USD, and other currencies

While most companies in Hungary maintain accounts in Hungarian Forints (HUF), this may not be ideal for internationally active businesses. We guide our clients through the process of transitioning their accounting system to a preferred functional currency, such as EUR, USD, or CHF.

Once implemented, we support your accounting team in maintaining the accounts, compiling financial statements, and managing all related tasks in the chosen currency.

Comprehensive payroll administration

We offer payroll services for companies that require complete confidentiality of salaries or find it impractical to employ an in-house payroll team. This is particularly beneficial for:

  • Smaller businesses
  • Larger companies managing social security and maternity benefits

Our payroll experts meet all legal requirements for handling payroll for companies with over 100 employees.

We handle full-scale payroll administration, allowing your company to focus on core business operations. Our services include:

  • Monthly reporting
  • E-banking file generation for salary, tax, and social security payments
  • Administration of personal income tax, pensions, and health funds

Most clients who outsource their accounting with us also choose to use our payroll services.

For an estimate of employer wage costs, you can use our online salary calculator.

Registered office services

International businesses that do not wish to maintain a physical office in Hungary can outsource their registered office to us.

We can:

  • Establish and register a new company headquarters in Hungary
  • Provide a registered business address in central Budapest
  • Handle administrative tasks and forward correspondence
  • Communicate with Hungarian authorities on your behalf

A registered office is a supplementary service available to clients outsourcing their accounting and reporting with us.

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