Labor and Social Legislation
This domain tests whether the first head can lawfully hire, pay, discipline and dismiss, and whether they understand the social payments the company must make.
Employment contract
The Labour Code (No. 414-V of 23 November 2015) requires a written contract with the essential terms. Probation is up to three months, and up to six months for heads of executive bodies and chief accountants. Fixed-term contracts are permitted only on the grounds listed in the Code.
Working time and pay
Normal working time is 40 hours a week; minimum annual leave is 24 calendar days. Wages are paid at least monthly, no later than the first ten days of the month following the reporting month. On liquidation or staff reduction the employer pays severance of one average monthly wage and compensates unused leave.
Discipline and dismissal
Disciplinary sanctions follow a documented procedure: written explanation, order, familiarisation. Dismissal on the employer's initiative requires the notice periods in the Code, and certain categories - pregnant women, employees on leave - are protected.
Social payments
Beyond wages: mandatory pension contributions 10%, employer pension contributions 5%, social contributions 3.5%, social tax 9.5%, and health insurance contributions 3% employer and 2% employee, subject to the caps set by law.
Worked example
A chief accountant is hired on five months' probation. That is lawful - the six-month maximum applies to the head of the executive body and to chief accountants. For an ordinary accountant the same probation would be unlawful, and the excess period would not count.
Traps
Paying wages once a quarter; masking employment through civil contracts; dismissing without the documented procedure; treating unpaid social contributions as the accountant's problem alone.