Multiple Jobs Held by an Employee: Is It Legal to Take on a Second Job?

As a general rule, the Hungarian Labour Code (Munka Törvénykönyve, “Labour Code”) does not contain any prohibition that expressly prevents an employee from maintaining more than one employment relationship, commonly referred to as a second job or secondary employment.

The freedom to establish employment relationships therefore implies that an employee’s ability to enter into a second employment relationship alongside an existing one may only be restricted for limited reasons and purposes specifically prescribed by law.

II. Constitutional Guarantees

The legislator’s fundamental objective was to ensure the broadest possible protection of the constitutional right to work and to freely establish employment relationships.

Article XII of Hungary’s Fundamental Law provides that:

Everyone shall have the right to freely choose their work and occupation and to engage in entrepreneurial activity. Hungary shall strive to create the conditions under which every person capable of working and willing to work may do so.

Accordingly, the possibility of freely entering into employment relationships, including multiple simultaneous employment relationships, enjoys constitutional protection as a general principle.

III. Details of the Permissive Regulation in the Labour Code

The logic underlying the Labour Code suggests that employees are generally free to engage in activities during their rest periods, provided that such activities do not adversely affect the quality of their work performance.

This fundamentally permissive approach also allows sector-specific legislation to permit secondary employment. However, it is important to emphasize that this freedom is not unlimited. The Labour Code contains several rules that employees must observe when taking on a second job. Failure to comply with those rules can easily result in an employee unintentionally breaching obligations arising from their primary employment relationship.

Duty of Cooperation and Notification

Section 6(2) of the Labour Code provides that the parties to an employment relationship must cooperate with one another and refrain from conduct that infringes the rights or legitimate interests of the other party.

Together with the general principles of good faith and fair dealing, this forms the basis of an employee’s obligation to notify their employer of any secondary employment.

In practical terms, this means that an employee must inform their employer if they intend to take on a second job.

This is closely linked to Section 6(4), which requires the parties to inform one another of all facts, data, circumstances, and changes thereto that are relevant to the establishment of the employment relationship or the exercise of rights and fulfilment of obligations under the Labour Code.

There can be little doubt that the existence of a second employment relationship may significantly affect the primary employment relationship and is therefore highly relevant from the employer’s perspective. Consequently, failure to disclose secondary employment may constitute a breach of statutory obligations.

Requirement to Be Fit for Work

Employers are entitled to expect employees to appear for work at the prescribed time and place in a condition fit for work and to perform their duties with the level of care normally expected, in compliance with applicable workplace rules and requirements.

The issue of fitness for work may legitimately arise if, for example, an employee who works a daytime shift arrives exhausted because they spent the previous night working a shift for another employer and have not slept for more than 24 hours.

In such circumstances, it is entirely legitimate for an employer to refuse to permit multiple employment relationships, as the employee may no longer be able to perform their duties with the required degree of care. This could infringe the employer’s legitimate interests protected by Section 6(2) of the Labour Code.

Accordingly, employers must be able to assess the potential consequences of dual employment, including:

• Sleep deprivation and fatigue;
• Reduced concentration and attention;
• Excessive physical strain; and
• Other factors that may impair performance.

Protection of the Employer’s Economic Interests

Another important consideration is the behavioural requirement set out in Section 8(1) of the Labour Code, under which employees may not engage in conduct that jeopardises their employer’s legitimate economic interests during the term of their employment.

In practice, this most commonly concerns employment with a competitor.

An employer clearly has a legitimate interest in preventing employees from taking up secondary employment with competing businesses, as such arrangements may directly affect the employer’s economic interests.

IV. The Exception: When Is Multiple Employment Prohibited?

The Labour Code imposes stricter rules on senior employees.

Under Section 208(2), an employee qualifies as a senior executive employee if they:

• Occupy a position of outstanding importance or a highly confidential nature with respect to the employer’s operations; and
• Receive a basic salary amounting to at least seven times the statutory minimum wage.

Section 211(1) provides that such employees may not establish any additional work-related legal relationship.

For these purposes, work-related legal relationships include:

• Employment relationships;
• Cooperative membership involving a work obligation;
• Service contracts and agency agreements;
• Positions as executive officers or supervisory board members of companies; and
• Sole proprietorships.

Therefore, senior executive employees are generally prohibited from engaging in any additional gainful activity of this nature.

V. Does a Second Job Affect Salary?

An existing employment relationship and any subsequently established second employment relationship are considered entirely separate employment relationships.

As a result, all statutory employment rules apply independently to each employment relationship.

From a remuneration perspective, this means that an employee’s basic salary under either employment relationship may not be set below the applicable statutory:

• Minimum wage; or
• Guaranteed minimum wage,

even if the employee’s combined income from both jobs would exceed those thresholds.

Accordingly, the legal rules governing minimum wage and guaranteed minimum wage apply separately and equally to each employment relationship.

It should also be noted that the amounts of the minimum wage and guaranteed minimum wage are subject to annual adjustment by government decree.

Conclusion

In summary, Hungarian labour law generally adopts a permissive approach towards employees holding multiple jobs. However, this freedom is subject to several statutory conditions that require careful consideration by both employers and employees.

If you encounter issues relating to secondary employment, whether as an employer or an employee, it is advisable to seek professional legal assistance. Should you have any questions regarding this topic, our firm would be pleased to assist you through any of our contact channels.