The lawful execution of employer rights is an important subsystem of corporate governance (a labour case study)1

Abstract

In the world of work, the political transition created a difficult situation in Hungary which has become even less favourable in the 2010s. Employees are exposed to numerous infringements. The case study presented at previous MEB conferences and continued herein illustrates the vulnerability of employees. The case study provides an excellent opportunity for the presentation of the special Hungarian labour law (the conclusion of an employment relationship, payment of wages, performance of work, trial period, termination, corporate dismissal, etc.) and for summarising the lessons learned. In addition to the court judgement involving heavy expenditure, it can also be concluded that successful corporate work can only be achieved by respected and skilled employees, and the loyalty of employees is the key source of results. This, in turn, can only be achieved if the representatives of the owners and the management of the company pay great attention, as a subsystem, to the lawful employment and motivation of employees.