What You Need to Know About Hungarian Law: Key Insights?

Question from Ervin, What You Need to Know About Hungarian Law: Key Insights?

Answer from AI:

What Hungarian Law Is

Hungary’s legal system is a civil‑law system, meaning that most rules are set out in written codes rather than in case‑by‑case precedent. The system is anchored by the Fundamental Law of Hungary (Alaptörvény), which functions as the country’s constitution. All other statutes, decrees and regulations must be consistent with the Fundamental Law, and the Constitutional Court can strike down any act that conflicts with it.

Main Sources of Law

• Fundamental Law (Alaptörvény) – the supreme legal act; it defines the structure of the state, fundamental rights, and the hierarchy of norms.
• Acts of Parliament (törvények) – legislation passed by the National Assembly. The most important codes are the Civil Code (2013), the Criminal Code (2012), and the Civil Procedure Code (2016).
• Government Decrees (rendeletek) – issued by the Government to implement Acts.
• Ministerial Decrees (miniszteri rendeletek) – detailed rules issued by individual ministries.
• Local Government Decrees – regulations adopted by counties or municipalities within the limits set by higher law.
• Case law – decisions of the Curia (Supreme Court), the Regional Courts of Appeal and the Constitutional Court. While not binding in the same way as common‑law precedents, higher‑court rulings are highly persuasive and guide lower courts.

Structure of the Courts

1. Curia (Supreme Court) – the highest ordinary court; it ensures uniform interpretation of law.
2. Regional Courts of Appeal – review decisions of lower courts.
3. Regional Courts and District Courts – handle first‑instance civil, criminal and administrative matters.
4. Constitutional Court – reviews the constitutionality of statutes, government decrees and certain administrative acts. Judges are appointed for life and may be removed only for serious cause, guaranteeing judicial independence.

Key Areas of Law

• Civil Law – governs contracts, property, family matters, inheritance and torts. The 2013 Civil Code modernised many rules that previously stemmed from socialist‑era legislation.
• Criminal Law – the Criminal Code (Act C of 2012) defines offences and penalties; the Criminal Procedure Code sets out investigation and trial procedures.
• Administrative Law – regulates the relationship between individuals and public authorities, including licensing, public procurement and the right to judicial review.
• Labor and Social Security Law – covers employment contracts, collective bargaining, unemployment benefits and pensions.
• Commercial Law – includes company law, competition law and securities regulation, largely harmonised with EU directives.

How Laws Are Made and Changed

• Parliamentary Initiative – a bill can be proposed by the Government, a parliamentary committee, a member of Parliament or the President.
• Adoption – most Acts require a simple majority; amendments to the Fundamental Law need a two‑thirds majority of all MPs.
• Promulgation – after adoption, the act is published in the Official Gazette (Magyar Közlöny) and becomes effective, usually within 15 days unless a different date is specified.

Where to Find the Texts

• The official English translation of the Fundamental Law is available on the Hungarian Government portal: Fundamental Law of Hungary (official site).
• The National Legislation Database (N‑Lex) provides searchable English versions of Acts and decrees: National Legislation Database.

When to Seek Professional Help

The overview above is general. Specific questions—such as the impact of a particular contract clause, the procedure for challenging a government decision, or the tax consequences of a business transaction—require detailed analysis of the relevant statutes and case law. Because Hungarian law can interact with EU law and international agreements, it is advisable to consult a licensed Hungarian attorney or a qualified legal professional for personalized advice.