Facilitations in the employment of third-country workers
Government Decree 407/2021 (VII.8.) lays down special employment rules in three areas.
One element of the regulation is that the contract concluded by the third-country national and the employer for the establishment of an employment relationship may be for a fixed-term employment relationship lasting until the end of the third-country national's legal stay in Hungary at the latest. If the duration of the third-country national's legal residence in Hungary is extended, the duration of the previously concluded contract may be amended accordingly.
The other facilitation is that the employment of a third-country national on the territory of Hungary within the framework of an employment relationship does not require a permit, nor does the employment in Hungary of third-country nationals as defined in the Communication of the Minister of Foreign Affairs by a qualified employer in the employment activities defined in the Communication, including employment through temporary employment agency.
The Communication of the Minister of Foreign Affairs has not been published yet.
As a third measure, the Government Decree establishes the institution and the register of qualified employers. This means that temporary employment agencies wishing to employ and lend workers from third-countries in Hungary must apply for registration as a qualified employer.
The employer must meet the following conditions:
- registered as a lender, a limited liability company with its members established in the territory of a State party to the Agreement on the European Economic Area,
- it must employ someone who is employed for at least 20 hours and who has:
- a degree in economics, economics from a university,
- a degree in law and/or political science from a university,
- a degree in psychology and sociology from a liberal arts university, or
- a degree in public administration, economics, human resources management, human resources, administrative management, public administration management, public administration master's degree, social administration, labour and career counselling from universities and colleges
- for the purpose of supporting the lawful employment of third-country nationals, employs a person with the number and level of education or professional qualifications specified in the Annex to the Government Decree, for at least 20 hours per week, or has a contract with a company that employs a person with the professional qualifications specified in the Annex for 20 hours per week.
Depending on the number of third-country workers employed at the site, the company must employ at that site someone capable of the the above mentioned qualifications. If the number of third-country workers at a given site is less than 100, one worker with one of the above qualifications is required, but if the number of third-country employees at a given site is 1,000, five employees with one of the above qualifications is required.
- must deposit a financial security fund of HUF 50 million as a cash deposit at a financial institution,
- must have an average annual statistical headcount of at least 500 employees for the previous financial year,
- must have a steady business background and adequate office space to carry out its activities,
- taxpayer with no public debt.
The application must be submitted to the government office where the employer is established using an electronic form. In case the company is not established in Hungary, the application must be submitted to the Government Office of Budapest.
This includes the employer's name, organisational form, company registration number, registered office, place of business, tax number, the names, addresses and other contact details of the persons authorised to represent the employer, and the employer's declaration of compliance with the above requirements.
The Minister of Foreign Affairs maintains a publicly accessible national database of qualified employers. The employer is obliged to indicate the number of the registration decision in the documents relating to the employment of third-country nationals.
Qualified employers must inform third-country nationals in writing, in their mother tongue or in another language they understand, of the legislation of Hungary at the latest when the contract for the establishment of an employment relationship is concluded. The qualified employer shall be liable for any damage caused by failure to provide such information or by providing incorrect information.
The provisions of the Government Decree shall apply to applications for residence permits submitted after its entry into force or to administrative procedures initiated on the basis of an official control.