The new rules of health and economic protection published

Tuesday night, Act CIX of 2020, along with a government decree introducing new restrictions and measures entering into effect from 12 am on 11 November 2020, were published in the official gazette Magyar Közlöny; on the basis of the promulgated text of the decree, it is effective until 11 December 2020.
On the basis of the official text of the of the decree, the following is a brief summary of the new restrictions:

• A curfew is introduced between 8 pm and 5 am, which means that everyone must return to their address of residence by 8 o’clock in the evening. People may be exempted from the curfew for work-related reasons; however, these reasons must be properly documented.
• All gatherings of people is prohibited.
• Restaurants cannot allow guests to enter, with the exception of picking up food prepared for take-away. The Government reduces the administrative burdens of home delivery, and makes taxi operators available for the performance of these tasks. Workplace canteens may continue to be open.
• With the exception of pharmacies and petrol stations, all shop must close at 7 pm, and may next reopen on the following day after the end of the curfew, i.e. not earlier than 5 am. Service providers and services not specifically mentioned in the decree (e.g. hairdressers, massage saloons, personal trainers) may continue to operate according to their normal schedule, while observing the rules of the curfew.
• Hotels may not provide accommodation for tourists, only for guests arriving for business, economic or educational purposes.
• The holding of all kinds of events – including cultural events and Christmas fairs – is prohibited. The ceremonies of religious communities may be held in accordance with the decision of the given religious community. The Government asks religious communities to determine their rules of conduct applicable during their events in accordance with the general rules.
• Sporting events may only be held behind closed doors, without spectators.
• Individual outdoor sports may be exercised. On the basis of the relevant provisions of law, professional athletes cannot be restricted in their activities as such.
• The use of leisure time facilities is prohibited, including in particular fitness centres, indoor swimming pools, museums, libraries, cinemas, zoos and skating rinks.
• Nurseries, kindergartens and primary schools up to the 8^th grade continue to be open according to their normal schedules; specific protective measures are to be determined by their directors/principals on the level of the institution. In secondary education, school operate in a digital work format from the 9^th grade. Student dormitories for secondary school students may operate subject to the decision of school principals.
• Universities and colleges switch to a digital work format. The dormitories of higher education institutions are generally closed, exceptions may be made by the rector. Students who may be allowed to remain in dormitories are, in particular, international students, students of Hungarian nationality from other countries, as well as those quarantined in the dormitory.
• Private and family events (e.g. birthdays) may be held with the participation of up to 10 people.
• Burials/memorial services may be held with a maximum of 50 people in attendance.
• Weddings (but no wedding parties/receptions) may be held, but only with the participation of a certain set of people as determined.
• Employees at hospitals, schools, kindergartens, creches and social welfare facilities must be tested weekly, in accordance with the provisions of a separate government decree.
• The rules of social distancing and wearing masks earlier introduced remain in effect with the addition that the wearing of masks in certain public areas on settlements with populations over 10,000 people is mandatory. It is the tasks of the mayors to designate such areas.
• The wearing of masks while exercising/engaging in sport, in parks and green areas is still not mandatory.

On the basis of the above, it can be seen that from the point of view of employment, the restrictions affect the following:

• the activities and operations of employers
• the records kept by employers
• the scheduling of working time, work organisation
• in connection with the curfew, the preparation of declarations and other documents related to commuting to and from work
• documents of employment law and the issuing of instructions, as related to the organisation of work
• changes in employment relations (for example, in case of students, possible also the termination of their employment).

The new provisions of law, specifically Government Decree 485/2020. (XI. 10.), also sets forth further measures for the protection of the economy:
On the basis of the new rules, payers who have the following principal business activities, as defined on the basis of the TEÁOR activity codes, may be exempted from the payment of

• the social contribution tax,
• the vocational training contribution tax,
• the rehabilitation contribution tax after their employees,
• as well as from the small business tax base in case of companies that elected to pay the small business tax (KIVA).

The Government Decree lists the following principal activities as exempted from the above:
Section 5. The tax exemptions listed in Sections 1 to 4 are available to taxpayers engaged in the following as their actual, principal business activities:

1. Restaurants and mobile food service activities (TEÁOR 5610)
2. Event catering activities (TEÁOR 5621)
3. Beverage serving activities (TEÁOR 5630)
4. Film screenings activities (TEÁOR 5914)
5. Organisation of conventions and trade shows (TEÁOR 8230)
6. Sports and recreation education (TEÁOR 8551)
7. Performing art activities (TEÁOR 9001)
8. Support activities to performing arts (TEÁOR 9002)
9. Operation of arts facilities (TEÁOR 9004)
10. Activities of museums (TEÁOR 9102)
11. Operation of botanical and zoological gardens and nature reserves (TEÁOR 9104)
12. Operation of sports facilities (TEÁOR 9311)
13. Activities of sports clubs (TEÁOR 9312)
14. Fitness facilities (TEÁOR 9313)
15. Other sports activities (TEÁOR 9319)
16. Activities of amusement parks and theme parks (TEÁOR 9321)
17. Physical well-being activities (TEÁOR 9604) or
18. Amusement and recreation activities not elsewhere classified (TEÁOR 9329).

The promulgated Act of Parliament and the related Government Decrees contain further, detailed rules, exceptions, as well as rules applicable to the implementation of these provisions of law.
If you may also be affected by these changes, do not hesitate to contact our designated colleague.

We do hope that we could be at your service with this information. Should you have any further queries, please feel free, to contact us!