Hungary Economy Ministry lays off dozens before "easy firing" deadline

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Hungary’s National Economy Ministry has laid off dozens of people in the past few days, taking advantage of a Constitutional Court ruling that banned sacking public sector employees without justification only after 31 May, local news portal origo.hu has reported. It said the ministry headed by György Matolcsy terminated the contracts of old employees, but the budget department was left almost intact.
Business daiy Napi Gazdaság wrote on Monday that the Economy Ministry will cut its headcount by 10% in what it calls a “quality exchange", which would affect 80-100 employees.Origo.hu reported on Wednesday that the series of layoffs started last Friday and ended on Tuesday this week, as under a recent ruling by the Constitutional Court, public sector employees could be sacked without justification until 31 May. Several dozens of people were showed the door at the Economy Ministry, mostly those who had been working there for a longer time, the portal said.

Interestingly enough the headcount reduction did not affect the budget department, which could be explained by the fact that secretary of state György Naszvadi is in a good relation with Prime Minister Viktor Orbán, according to sources talking to origo.hu.

The biggest changes were made in the departments dealing with tax issues, where the ministry has already found the replacements. The department dealing with income and sales taxes is to be headed by Gáspár Molnár, who had been working under EU Tax Commissioner László Kovács before. Gyöngyi Antal may be appointed to head the income taxes department and Benedek Nobilis, who formerly worked at the central bank (NBH) as an analyst, can also be put in charge of a whole department.

The ministry streamlined its staff in a bid to achieve cost savings and to make public administration more effective, the ministry told origo.
 

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