végkielégítésre

Végkielégítés is a Hungarian term that translates to severance pay or redundancy payment in English. It is a financial benefit provided to employees who are terminated from their employment for reasons other than their own fault, such as company restructuring, downsizing, or insolvency. The primary purpose of végkielégítés is to offer a financial cushion to the employee during their transition period while they seek new employment.

The eligibility for and the amount of végkielégítés are governed by Hungarian labor law. Generally, employees are entitled to severance pay after a certain period of continuous employment with the same employer. The duration of employment is a key factor in determining the amount of the payment, with longer-serving employees typically receiving a higher sum. Specific legal provisions outline the minimum and maximum amounts that can be paid.

Employers are legally obligated to provide végkielégítés in applicable cases. Failure to do so can result in legal consequences for the employer. The calculation often involves multiplying a certain number of months' salary by the employee's length of service. Certain circumstances, such as immediate dismissal due to gross misconduct by the employee, typically disqualify the individual from receiving severance pay. The concept aims to provide a degree of financial security for workers facing job loss through no fault of their own, recognizing their contribution to the company over their tenure.