Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2020-12/706 – Updated – measures in Hungary
|Country||Hungary , applies nationwide|
|Time period||Temporary, 19 March 2020 – 31 December 2022|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Nóra Krokovay (KOPINT-Tárki) and Eurofound|
|Measure added||16 April 2020 (updated 19 June 2023)|
Under Section 3 of the government decree 47/2020, businesses in the sectors of catering, entertainment, tourism and passenger transport will receive protection from a rent increase and termination of rental contracts until at least the end of June, after which the ban can be extended. Rental leases for these companies cannot be terminated in this period so tenants cannot be evicted. It is not clear if this means on any grounds at all or whether landlords can exercise some of their rights to terminate.
Under Section 3 of government decree 47/2020, the sectors selected as one most affected by the COVID-19 crisis will receive protection from rent increase or rental contract termination. The measure applies to sectors where businesses typically rent rather than own their premises and where the economic impacts of COVID-19 have caused financial strains. Although the measure does not specify if rental contracts are banned from termination, even if no rent is paid by the tenant at all, experts agree that with the eviction ban in place tenants are likely to get away with not paying at all during the 'state of emergency' period while their business is likely to be closed down.
The measure could affect about 50,000 companies, mainly SMEs in sectors vulnerable to the impacts of the pandemic. The rule overrides any rent increases stipulated in the rental contract. Legal experts say that if tenants do not pay rent at all, landlords are likely to seek agreement on special terms rather than lose clients on a shrinking property rental market. Analysts argue that the effectiveness of this measure in supporting businesses is very low, since under the current circumstances property owners were not likely to raise rents.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Company / Companies
Local / regional government
No special funding required
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
There was no social partner involvement in the drafting of this measure.
|Economic area||Sector (NACE level 2)|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G47 Retail trade, except of motor vehicles and motorcycles|
|H - Transportation And Storage||H49 Land transport and transport via pipelines|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
|P - Education||P85 Education|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R92 Gambling and betting activities|
This case is not occupation-specific.
Eurofound (2020), Rent freeze and contract termination ban for businesses in specific sectors, measure HU-2020-12/706 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2020-12_706.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.