If the executive officer (managing director, board member) is employed as an executive employee in the framework of an employment agreement, furthermore, if an employee otherwise fulfils a key position or a position of trust (e.g. company manager, CFO, HR director, head of marketing etc.) and meets the statutory requirements, the specific employment rules on executive employees apply as early as the establishment of employment.
Since the employment contract of the executive employee may deviate from the provisions of the Hungarian Labour Code in many ways even to the detriment of the employee, it is of a kay importance that, before signing, the candidate has the employment contract draft reviewed and commented by an attorney specialized in employment law.
It is usual that along with the employment agreement there is a non-compete agreement the terms and conditions of which can also be negotiated, alternatively, the possibilities of an eventual release from the non-compete can also be explored with the help of an employment law expert.
The compensation of executive employees usually includes a bonus or a premium on top of the salary. One may blur the two categories and it is not a common knowledge what terms and conditions to pay attention for when negotiating or performing the given tasks, although it makes a big difference when it comes to claim enforcement in court.
The executive employee’s work requires a higher level of professionalism and focus, their liability is enhanced. An eventual failure carries great weight when it comes to evaluation and may result in higher damages as well, thus, the limit of liability for damages is determined at a higher level. In case of an internal inquiry, it is advisable to engage an employment law expert in order to minimize risks.
We support you with to-the-point legal advice regarding the negotiation of your exit terms as executive officer and the termination of your related executive employment. Furthermore, in case of a settlement dispute we are delighted to represent you in front of the employer, court or authorities.
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