Staff - Hungary

Updated 12/2010

Legal requirements

General labour regulations in Hungary are outlined in the Labour Code.

These regulations also refer to the employees of foreign companies who work in Hungary. In that case, the legislation provides for an exception, if employment relationships are regulated more favourably in the country of origin of a foreign company or if the employer and employee conclude a more favourable agreement.

Labour Code

State duties related to employment are coordinated by the Ministry of National Economy and the Ministry of National Resources.

The Central Administration of National Pension Insurance (ONYF) handles matters related to pension insurance, while the central authority for social security is the National Health Insurance Fund (OEP).

The mandatory minimum wage is regulated each year by government decree. Various contributions have to be paid on wages, some of which are paid by the employer and some by the employee.

Contributions to be paid for employees
Company contributions and fees

Employment conditions

The employer pays the employee a wage on the basis of the employment relationship. The mandatory minimum wage is regulated each year by government decree.

Minimum wage

Unless there is an agreement to the contrary, employment is full time, i.e. 8 hours a day, 40 hours a week. The working hours are shorter for part-time work.

Working hours and schedule

In any event, the employer must guarantee the conditions for working safely and fulfil the minimum requirements for health and safety at work.

Health and safety at work
Requirements for health and safety at work
Requirements for health and safety at work Hungarian Labour Inspectorate (OMMF)
Working in front of a screen

Employment may cease for example by the death of the employee or upon expiry of the period defined in the employment contract, or it may be terminated by mutual consent, by giving ordinary or extraordinary notice, or with immediate effect in various circumstances.

Termination of employment
Termination of employment by mutual consent
Termination of employment by ordinary notice
Termination of employment by extraordinary notice
Termination of employment during the trial period
Unlawful termination of employment
Group redundancy

Employees are entitled to breaks, both while working and in between workdays. In addition to this, all employees have the right to take leave.

Breaks and rest days
Normal leave, basic leave
Special leave
Compensatory leave
Unpaid leave

In many cases, the Labour Code contains more favourable regulations in order to protect young people.

Young workers
Employment circumstances of young workers
Working hours, breaks and leave for young workers

An important task is to improve living conditions, equal opportunities and employment support for disabled people.

Government Decree on Budgetary Support Available for Employing Disabled Workers

In order to protect employees and maintain a peaceful working environment, contact between employees and employers and their associations is regulated by law. Freedom of association and the participation of employees in developing working conditions are enshrined in law.

Collective agreement
Trade unions
Works council

Employment contracts

Employment relationships are usually created through employment contracts. Employment contracts must comply with strict requirements relating to their form and content. The requirements for occasional work are regulated by the Act on Simplified Employment.

Labour Code
Employment contract
Act on Simplified Employment
Simplified employment

Employment of foreigners (non-EU citizens)

As a general rule, the employment of foreigners in Hungary is conditional upon a permit, but there are a number of exceptions to this.

Employment of foreigners in Hungary

During the naturalisation and recognition procedure, diplomas and certificates obtained abroad, outside the EU, assume equal value to those that can be obtained in Hungary.

Recognition and naturalisation of foreign certificates and diplomas in Hungary

Workers arriving on secondment from other Member States of the EU are advised to request an A1 form and European Health Insurance Card before they move to Hungary. These forms prove the temporary employment relationship as well as entitlement to healthcare services in Hungary.

Health care services available during temporary stays in Hungary [109 KB]

There are minimum social rules to follow, especially about non-discrimination, gender equality and health and safety.

Staff welfare — Hungary

Administrative procedures

Advising of new and terminated employment relationships and filing wage contribution returns

Employers must advise the competent tax authority of new and terminated employment relationships, either electronically or using special forms.

Performance of work and the employment relationship
Procedure for termination of employment

Employers may advise of employment relationships and file wage contribution returns electronically once they have registered at the Client Gateway (Ügyfélkapu) on the Government Portal:

Government Portal Client Gateway
Advising of new and terminated employment relationships
General form-filling program (ÁNYK)
Filing wage contribution returns electronically

Creating an employment relationship

As a general rule, employment relationships are created through employment contracts ; unless there is an agreement to the contrary, they imply full-time work (8 hours a day, 40 hours a week) and are concluded for an indefinite term.

Employer's obligation to provide information when an employment contract is concluded
Employer licences
Rights and obligations of workers

Employment

Various contributions have to be paid on wages, including the national insurance contribution payable by the employer, and the health insurance and pension contributions payable by the employee. Wage contribution returns may be filed electronically on the Government Portal after registration on the Client Gateway.

Contributions to be paid for employees
Information on filing contribution returns
Information on paying contributions
General form-filling program (ÁNYK)
Tax and contribution return
Client Gateway
Provision of information relating to the individual pension insurance record form

Record-keeping

Employers are obliged to keep records of insured persons. Certificates are issued to employees, and data is provided to the authorities as prescribed by law, using the data in the records.

The Act on Persons Entitled to Social Security Benefits and Private Pensions, as well as the Coverage of these Services

Data must be provided electronically on the Government Portal after registration on the Client Gateway:

Services relating to records of social security numbers

Data relating to pension insurance records are handled by the pension insurance body responsible for the Pension Insurance Fund.

Central Administration of National Pension Insurance

Data relating to health insurance records are handled by the health insurance body.

National Health Insurance Fund [109 KB]

Data relating to the wage contribution filing, payment, and implementation records are handled by the State tax authority.

Tax and Financial Control Administration

Cessation, termination of employment

Employment can be terminated by mutual consent of the employer and employee, by giving ordinary notice, extraordinary notice, or with immediate effect during the probation period, or by the employer before the expiry of the specified period.

The employee is due severance pay if the employment relationship is terminated extraordinarily by the employee, or by the employer with notice, or upon termination of the employer without legal succession, and where the employee is not of retirement age and has worked for a period of at least three years for the employer in question. In the event of termination without legal succession, nobody will replace the terminated company.

Procedure for termination of employment

Employers are obliged to report group redundancies to the State employment body and the competent regional job centre. Employers may also make reports using the online system, which allows the intent and decisions for group redundancies to be recorded electronically.

Electronic form for reporting an employer's decision on a group redundancy

Resources

EURES, the European job portal, offers employers information and support on recruiting across the EU. As well as assisting jobseekers, it helps entrepreneurs find workers from across the EU. In border regions, EURES provides information on cross-border commuting and helps workers and employers with problems that may arise.

Programmes

Start programme

The Start programme helps young people with basic or secondary qualifications at the start of their careers to obtain practical experience over a period of two years, or over a period of one year in the case of those who are at the start of their careers and have a degree-level qualification. Employers can benefit from preferential contribution rates if they are prepared to employ young people.

Start Card for those at the start of their career
Start Card

Two other schemes are the Start - Plus and Start - Extra programmes. The former aims to help the long-term unemployed, parents with child care assistance and fees, and family members looking after close relatives to get back into the job market, while the target group for the latter is those in the older age group (those over 50 years of age), and job-seekers with low school qualifications.

Start - Plus programme
Start - Extra programme

Check also the legislation on this topic in:

Staff - Hungary