Managing HR Through COVID-19
A Practical Guide For Multinational Employers
Prepared by Bán, S. Szabό & Partners
As at March 31, 2020
This guide will help employers manage HR legal and practical issues arising from COVID-19.
- Good Practice Guidance giving high-level consideration;
- An Action Point Checklist drilling down into the detail; and
- Answers to Key Questions facing employers in Hungary.
This publication has been coordinated by Mayer Brown and forms part of a wider Mayer Brown Guide for Multinational Employers, which is available here.
It has been prepared by Bán, S. Szabό & Partners and is published with their kind permission. With thanks to:
Bán, S. Szabό & Partners | Dr Péter Szemán | firstname.lastname@example.org | www.bansszabo.hu
There are a number of key good practice points that employers across all jurisdictions will want to consider in connection with COVID-19:
1. Keep up-to-date with accurate information
It is difficult for an employer to make proper decisions based on rumors, assumptions and “fake news”. Therefore, it is important for an employer to stay up-to-date with accurate information and make decisions based on facts. Employers should monitor official sources, including government advisories and the World Health Organization (“WHO“) website, and check that the information they receive is factually correct.
2. Know where your employees are and where they have been
An employer cannot keep its employees out of harm’s way if it does not know where they are and where they have been. As outbreaks of COVID-19 occur in various parts of the world, keep track of which of your employees could be at risk.
3. Communicate with your employees
Employers should communicate openly and often with their employees so that they have the information they need to help keep themselves educated and updated about the coronavirus. It should not assume that all employees will educate themselves or have access to the same sources of reliable information. Putting everyone on the same page will help the employer and its employees move together in a timely manner as a business. Open and timely communication will help build trust and reduce the spread of rumors that may cause anxiety in the workplace.
4. Provide a safe platform for employees to raise concerns
Employers should give employees a safe platform where they can raise concerns on all aspects related to work, from mental health to the risk of having contracted COVID-19. This is not just good employee relations, but early detection and doing something about it can help to reduce the spread of the virus. It is one thing to have an employee assistance plan and ask employees to report issues, but if those who report are stigmatized or treated with contempt, employees may be deterred from reporting.
There may be nervousness and anxiety in the workplace, and possibly even conflicts, given concerns about the virus. Employees should be given avenues to communicate such anxiety to their employer, so that concerns are addressed earlier and do not balloon into bigger issues.
5. If you can be flexible, then be flexible
Employers should understand that this is a time of stress for all parties, including employees. Recognize that employees will have different needs depending on their circumstances (e.g., those with school-age children may need more time off as school classes are suspended).
This time of uncertainty will pass but employees will remember how their employer treated them long after the threat of the virus has disappeared. A disgruntled employee may try to make it known to the world how badly their employer treated them. This may affect the employer’s brand and ability to attract and retain talent. The employer may then have to wait for another crisis or challenging time to get the opportunity to prove itself as a good employer.
6. One size may not fit all
While consistency in treatment is generally to be favored, be conscious that one size may not fit all. For example, “work from home” or remote working may not work for everyone. The implementation of general directives should be checked against legal obligations under the contract of employment and local law.
Action Point Checklist
In general terms, the steps an employer needs to be taking now relate to four categories: Review, Communicate, Update and Travel. No list of action points will be comprehensive for all employers, but the following will form a good starting point.
- Review business continuity plans and how these would be maintained if employees are suffering from coronavirus absences.
- Review existing sickness policies and procedures. Are they adequately disseminated to staff? Do they need amending?
- Review contracts of employment. It may be relevant to establish whether or not individuals can be asked to undertake different work or at different locations or at different times from the norm.
- Review the employer’s emergency procedures, e.g., if there is an infection and the workplace is closed on a temporary basis. If appropriate, carry out a test run of an emergency communication to see how robust the process is.
- Ensure contact details for all staff are up-to-date.
- Undertake a risk analysis of high-risk groups of employees, and what steps can be taken to try and reduce risks for those groups. These groups may include:
- those who travel frequently to countries where there is currently or may well in future be a risk of infection.
- those with health issues, such as asthma, diabetes, cancer, or those who are pregnant, who are more likely to suffer adversely if they become infected with the virus.
- Review procedures in the office for preventing the spread of the virus, e.g., increased cleaning, availability of hand sanitizers and tissues etc.
- Review planning for the possibility of large scale absenteeism. For example:
- Identifying the essential positions within the business, what needs to carry on during an emergency, and what is the minimum number of employees required?
- Identifying employees with transferable skills so that these essential positions can always be temporarily filled.
- Considering flexible work patterns, such as employees working from home.
- Identifying those employees who have the necessary IT infrastructure to work from home (e.g., remote access to the office computer systems).
- Identify an appropriate person as spokesperson/communicator of updates on policies etc., with appropriate credibility.
- What, if anything, is said about absence from work for reasons other than ill-health, e.g., where an office is closed?
- Assuming the employer has a health and safety committee, have there been any discussions with that committee about COVID-19 and its potential impact? If there is no such committee, the employer may want to consider setting one up.
- Communicate as a matter of urgency with the high-risk groups identified in any risk review to ensure they are aware of their high-risk status and the measures that are being taken to assist.
- Ensure managers are aware of the relevant workplace policies.
- Consider issuing guidance to employees on how to recognize when a person is infected with the coronavirus. What are the symptoms, and what should one do if one is taken ill at home or at work? It is also important to emphasize that individuals may not recognize that they have the virus and so may not be exhibiting symptoms. Employees should be informed of the reporting procedure within their employer if they have a potential infection as well as any official reporting process.
- Provide advice to encourage individuals to take a degree of responsibility for their own health and safety and to slow the spread of the virus. For example, advice on handwashing and use of sanitizer gels, coupled with a willingness to self-identify where it is possible that individuals have come into contact with individuals with the virus, have become infected themselves or have returned from private travel abroad to an area which turns out to be affected by the virus.
- Make clear that where staff are ill, they must not come to work regardless, i.e., “struggle through”.
- Initiate a system to keep up-to-date, especially given the speed at which infection is spreading.
- Consider establishing a committee on the employer’s side to coordinate responses and engage with any staff consultative forum, and with particular responsibility for staying up-to-date with public health updates.
- How will employers communicate to employees regular updates on the coronavirus and its spread? As news develops, it is extremely important for an employer to be issuing fact-based updates, to avoid the possibility of fear being used by worried employees to make decisions about whether or not to come to work, whether to travel abroad, etc.
- Who will have the authority to determine changes to policy and issue any new communications to staff?
- Log employee travel before it is booked and check against the latest travel protocols.
- Ensure staff know that this applies to personal travel as well as business travel.
- Encourage staff to tell you if close family members with whom they share a house are travelling to infected areas.
- Replace face-to-face meetings (especially those involving travel) with video conferences, telephone conferences, etc.
- Consult/communicate about whether to encourage varied work patterns to avoid travelling on public transport at rush hour.
As at March 31, 2020
1. What are an employer’s main legal obligations?
The main areas of an employer’s legal liability associated with COVID-19 in the workplace include:
- Providing a safe and healthy working environment to employees, according to the general rules of the Work Safety Act;
- Complying with obligations under the contract of employment;
- Providing site physician availability to employees (there is a general requirement that employers provide for a site physician to check the health of employees and to issue certificates confirming that employees are healthy and capable to work).
2. Do I need to prepare for and have in place a workplace plan to deal with COVID-19?
There is no legal obligation in Hungary on an employer to specifically have a workplace COVID-19 response plan.
We, however, recommend that employers prepare a detailed plan (if one is not already in place) and implement it. The more detailed the plan the better prepared an employer will be to cope with any COVID-19 outbreak. A plan should deal with preparations to prevent an outbreak, what happens during the outbreak, and the steps to be taken after the outbreak. Both workplace health and safety issues, and business continuity issues should be covered. The plan may be part of and/or a refinement of a broader plan already developed.
3. What should a workplace COVID-19 response plan cover?
4. Can I direct my employees to go home or stay at home if there is an outbreak?
Yes, but it depends. If the employee is infected with COVID-19 and keeping them away from the workplace is reasonably necessary to protect public health, then the employer may direct the employee not to attend the workplace. The employer should continue to comply with its obligations under the contract of employment (e.g., to pay wages). If the employee is ill and this is certified as such by a physician, the employee will be placed on sick leave and will receive payment from the social security authority. The first 15 working days of sick leave, however, have to be paid by the employer. If the employee stays at home, it is possible for the employer to agree with the employee that they will receive a reduced salary during their period of absence.
5. Can I direct an employee to see a doctor?
Yes, but it depends. Requesting that an employee see a doctor is invasive and an employer would therefore generally require an express power in the contract of employment to direct an employee to see a doctor. Depending upon the circumstances, an employer may require an employee to obtain clearance from a doctor before being allowed to enter the workplace.
6. Do I have to continue to pay wages and provide other employment-related entitlements during a COVID-19 outbreak?
Yes. The contract of employment will continue during a COVID-19 outbreak unless the employment has ceased.
According to Section 146(1) of the Labor Code, the employer has to pay an employee’s base salary if it cannot provide work to the employee (downtime), with the exception of force majeure. So, in the absence of any other agreement with the employee, the employer has to pay the employee their base salary where they stay at home and do not perform any work for the employer.
If there is any force majeure (vis maior) event, as a result of which the employer cannot provide work to the employee, the employer has no salary payment obligation. In our view, if the government imposes a quarantine which affects the premises of the employer, or if the employee cannot come to work due to restrictions ordered by the government, this will constitute a force majeure event, in which case the employer has no salary payment obligation.
Section 146 of the Labor Code provides that where the employer agrees to release the employee from their duty to perform work, the employee’s absence is paid according to the agreement of the parties. This means that the employer and employee may agree that, in this specific epidemic situation, for a fixed period of time (which may be extended if necessary), the employee is not required to perform any work and will receive a reduced salary.
7. Can I quarantine certain staff to certain parts of an office or send them to a different office?
Yes. An employer may ask an employee to work from a particular part of an office if it is reasonably necessary to ensure public health. Additionally, for 44 working days in a calendar year, the employer may ask employees to work from a different location.
According to Section 6(2)(b) of the Government Order No. 47/2020 (III.18.), on the mitigation of the economic effects of the coronavirus pandemic (the “Government Order“), the employer may unilaterally order home office or telework for the employee.
8. Can I direct my employees to report suspected cases of COVID-19?
Yes, in the event of a COVID-19 outbreak, in our view, it would be lawful and reasonable to ask an employee to report if they suspect that they have COVID-19.
9. Can an employee lawfully refuse to attend work if there is a COVID-19 outbreak?
It depends, but it is possible. An employee can only lawfully refuse to attend work if they reasonably fear for their health and safety. According to Section 55(1)(j) of the Labor Code, an employee is released from their work obligation for any duration of absence due to personal or family reasons deserving special consideration, or as justified by unavoidable external reasons. The current epidemic situation and the closure of schools could be a reasonable cause, in which case, an employee may lawfully stay at home. This would be unpaid leave, but the leave has to be approved by the employer. The employer and employee may also agree that this leave will be paid (i.e., on the basis of a reduced salary, as outlined in question 6).
10. Can I screen employees and customers before allowing them to enter the workplace?
Yes. According to the Government Order, an employer may take necessary and justified steps to check the health of employees. In our view, this Government Order makes it possible to screen employees before entering the workplace. This is not, however, possible in relation to customers.
CONTACT: Bán, S. Szabό & Partners | Dr Péter Szemán | email@example.com | www.bansszabo.hu
Appendix: Workplace COVID-19 Response Plan
A plan should deal with the following:
BEFORE AN OUTBREAK
- Preventive measures.
- Disinfecting the workplace regularly.
- Maintaining good indoor ventilation.
- Making sure that employees, suppliers and customers are aware of the employer’s plans in the event of an outbreak.
- Ensuring sufficient supplies of appropriate masks, alcohol wipes, gloves, paper towels, thermometers, disinfectants, etc.
- If employees are required to travel to areas known to have the virus, whether such travel is necessary.
DURING AN OUTBREAK
- The steps the employer will take to ensure the safety of employees while at work during a COVID-19 outbreak include how an employer will identify risks of employees becoming infected and how to minimize such risks. The employer may also wish to seek advice from government/official sources as to what steps need to be taken, e.g., quarantine requirements.
- Communication strategies such as how and what information will be communicated to employees, suppliers and customers.
- Where employees will work, e.g., home, in the office or in alternative temporary offices.
- At what stage will the workplace be closed and who will decide that.
- How to deal with infection and/or deaths of colleagues, e.g., counselling.
- A mechanism for determining whether employees, suppliers and customers will be allowed access to the workplace, especially if they show symptoms of being infected by COVID-19.
- What to do with high-risk/exposure staff (e.g., pregnant, key employees and employees who travel).
AFTER AN OUTBREAK
- Ways to ensure that employees and customers have fully recovered before they are allowed back into the workplace.
- Rehabilitation for sick employees returning to the workplace.
Communication with employees and flexibility on enforcing requirements imposed on employees under their contract of employment will be important in maintaining employee relations and reducing anxiety and panic during an outbreak. Therefore, subject to local legal obligations and requirements, and depending on the circumstances, employers may wish to:
- Discuss with staff the possibility of a workplace closure prior to closing.
- Allow employees to take annual leave or unpaid leave once sick leave has been exhausted.
- Allow employees to work from home.
- Explore salary reduction or unpaid leave as an alternative to termination of employment where business has slowed down.
Employers should make visitors to its offices aware of any health and safety hazards associated with entering the workplace before any intended visit, where reasonably practicable.