Payback clause
- Name of the instrument - Local language
- Visszafizetési kötelem
- Name of the instrument - English translation
- Payback clause
- Country
- Hungary
- Type of instrument
- Payback clause
- Type of entry
- Single instrument
- Short description
Employers and employees can agree on a payback clause in connection with a learning contract. In a learning contract, the employee agrees to complete the studies and to refrain from terminating his employment by way of notice following graduation for a period of time commensurate for the amount of support, not exceeding five years.
- Short description of the related instruments
nap
- Level of operation
- National
- Name of a part of the country
- nap
- Name of the region (for regional instruments)
- nap
- Name of the sector (for sectoral instruments)
- nap
- Relevance
- Key scheme
- Legal basis
Act I of 2012 on the Labor Code 229§, sections 110-116
- Objective(s) and target(s)
To support company investment in training and guarantee that the employees’ skills in which the employer has invested will remain available to the company
- Year of implementation
- 2012
- Year of latest amendment
- 2012
- Operation/Management
Employers and employees can agree on a payback clause in connection with a learning contract. In a learning contract, the employee agrees to complete the studies and to refrain from terminating his employment by way of notice following graduation for a period of time commensurate for the amount of support, not exceeding five years.
- Eligible group(s)
Employers, employees
- Group(s) with preferential treatment
None
- Education and training eligible
No regulations on types of education and training in the Labour Code; it is laid down in the learning contract.
- Source of financing and collection mechanism
Employer, employee
- Financing formula and allocation mechanisms
In study contracts, the employer agrees to support the employee financially during the study period while the employee agrees to work for the employer for a fixed period of time after graduation. This period may not be longer than 5 years. The employer is entitled to claim a refund of the expenses incurred for the studies if the employee does not complete the studies, does not begin to work after graduation or interrupts the employment before the end of the agreed binding period. In the last case, the amount to be reimbursed is calculated according to the remaining period of validity of the clause.
Reasons for payback clause to become effective: voluntary resignation within binding period; dismissal due to a serious contract break; on-termination of the training.
- Volumes of funding
na
- Beneficiaries/take up
na
- Organisation responsible for monitoring/evaluation
Company-level: trade unions carry out the eligibility checks; no institution responsible for regular monitoring activities.
- Monitoring/evaluation reports available
na
- Most relevant webpage - in English
- Most relevant webpage - local language
na
- Sources
Act I of 2012 on the Labor Code https://www.ilo.org/dyn/natlex/docs/MONOGRAPH/89886/103369/F-622727815/…
The New Hungarian Labour Code - Background, Conflicts, Compromises http://www.fesbp.hu/common/pdf/Nachrichten_aus_Ungarn_june_2012.pdf
Cedefop (2012): Payback clauses in Europe: supporting company investment in training http://www.cedefop.europa.eu/de/publications-and-resources/publications…
Cedefop/Refernet (2012): Hungary VET in Europe – Country report http://www.observatory.org.hu/wp-content/uploads/2013/04/HU_2012_CR_EN_…
Cedefop: Financing Adult Learning. Hungary http://www.cedefop.europa.eu/FinancingAdultLearning/DisplayInstrumentNa…