The 7 Must-Knows Before Hiring An Employee In Hungary

 
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In this short summary we sum up the 7 most important things that an employer needs to know before hiring an employee in Hungary.

Work permit

If your employee is EU-citizen (or family member), no work permit is needed to employ him. Although on the first day of the employment, the employer has to report it to the employment centre.

On the contrary, in case of hiring a non-EU citizen, a valid work permit will be required. In this case before recruiting the workforce you have to file an application for work permit to the employment centre, or alternatively, the employee has to file a consolidated application for residence and work permit to the immigration authority.

In case of employing foreign workforce without permit the labour inspectorate may apply severe sanctions.

Practical advice: The employment centre will issue the work permit for non-EU citizens for maximum 2 years and after that it can be prolonged.

Employment contract - written form

In Hungary the employment contract shall be concluded in writing. It means that the contract shall be printed and signed by both parties. The absence of written form does not affect the validity of the employment relationship but it is a risk for the employer, because the labour inspectorate may apply sanctions (among other prohibits the further employment, imposes penalty).

Practical advice: Not only the employment contract, but the modification of the contract shall be in a written from.

Employment contract - base content

The employment contract sets out the basic rights, duties and responsibilities of both parties. At least the basic wage and the position have to be agreed in the employment contract.

It is very important that in Hungary workers must not be paid less than the statutory minimum wage which is specified by the government and reviewed annually.

Practical advice: the trial (probation) period shall be expressly agreed in the contract, and it cannot be longer than 3 months. During the probation period you can fire the employee without reasons and notice period.

Medical examination

An employer is responsible for providing their employees with a safe and secure environment to work in.

Therefore among other requirements, prior to beginning to work the employee shall be examined by a doctor who issues a medical certificate, attesting that the employee is medically...

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