Employment of foreigners in Hungary: a summary

Hungary

In Hungary, the employment of third-country national citizens is generally subject to conditions. Normally, a residence permit for employment purposes or other special types of residence permits are required for foreigners to be in compliance with employment legislation.  

1. Residence permit for the purpose of employment  

According to the contemporary Hungarian labour administration regulations, the employment of third-country nationals is only possible by obtaining a residence permit for the purpose of employment. This permit can be issued for a maximum of two years although an extension is possible for an additional one year.

This permit can only be requested by a "local" employer. In accordance with this rule, a foreign company can only pursue economic activities in Hungary if it has established an economic presence through a representative office or subsidiary. Even if local employees have a contract with the parent company, labour administration regulations will treat the local entity of the parent company as the employer. The practical reason for this is that local authorities can exercise control more efficiently and easily over a local entity.

1.1 The conditions to acquire a residence permit for the purpose of employment:

The following conditions must be met in order for a third-country national to obtain a residence permit for the purpose of employment:

  • the employer must have had a valid workforce request registered by the Labour Office for the position the foreign national is to be hired for before the application for work permit is submitted;
  • the foreign citizen has all the prerequisite qualifications to fill the position.

1.2 The conditions when no workforce request must be filed

In some cases, no workforce request need be filed if the Labour Office is not required to investigate whether there is a Hungarian national available for the position concerned. This eventuality makes the procedure faster and easier. According to the regulations, this is the case if:

  • within the framework of international conventions;
  • for the employment of a third-country national as key personnel;
  • over a calendar quarter, the number of third-country nationals employed in a business association under foreign majority ownership does not – on the last day of the previous calendar quarter – exceed 20% of the labour force in the previous calendar quarter;
  • a diplomatic or consular mission in Hungary of any foreign state, in the absence of reciprocity between the states concerned, is employing close relatives of the staff;
  • a third-country national internationally recognised in the field of education, science or art has employment that exceeds ten working days per calendar year, and has been invited by an institution of higher education, scientific research institute or cultural and art institutions (although there are exceptions to this regulation);
  • a family member of a third-country national working in Hungary has been employed for at least eight years, but does not possess an EU Blue Card, has lived together with the family member in Hungary for at least five years, and is not entitled to receive a residence permit for the purpose of family reunification;
  • the employed individual is the spouse of a person with refugee status, a beneficiary of subsidiary protection, a person having temporary protection, and a person who has the right of continuous residence, but only if this person has lived in Hungary for at least one year;
  • the employed individual is the widow of a person with refugee status, a beneficiary of subsidiary protection, or a person who has the right of continuous residence, or the widow of a person with the right of free movement and residence, and the couple lived together in Hungary for at least one year before the time of death;
  •  the employed individual carries out work that involves commissioning, warranty repair, maintenance or guarantee service activities performed on the basis of a private contract with a business entity established in a third country, and the employment activity exceeds 15 working days within a 30-day period at any given time;
  • the employed individual is a third-country national who has received authorisation from the immigration authority to work in Hungary in accordance with immigration laws;
  • the employed individual has been granted refugee status, to be performed outside the premises of the refugee centre, and has employment in Hungary supported by the refugee authority for humanitarian reasons;
  • the employed individual is a third-country national employed by an international organisation, diplomatic mission, consular post or other bodies of a foreign state or their staff, but is not regular staff or considered a delegated member of the state that he or she represents;
  • the employed individual is a third-country national by a motion picture company that is registered by the motion picture authority according to the Act on Motion Pictures;
  • the employed individual is a third-country national who participates in hands-on training in order to obtain sufficient experience for any specific work when the work does not exceed three months in any given calendar year;
  • the employed individual is involved in research in educational activities or a research project carried out under a hosting agreement concluded with a research organisation accredited according to the Government Decree on the Accreditation of Research Organisations Hosting Researchers who are Third-country Nationals, and on Hosting Agreements;
  • the employer submits the application for renewal of work permit in cases defined by law;
  • the employed individual is a family member of a third-country national holding an EU Blue Card to whom the provisions on family reunification apply;
  • the employed individual is a third-country national performing artists who is eligible for Hungarian Card.

1.3 There are also exemptions from the general rules regarding permit requirements. A work permit is not required in the following cases:

  • for the director of a branch office or representative office of a foreign-registered company;
  • for the staff of diplomatic or consular missions;
  • for carrying out work that involves commissioning, warranty repair, maintenance or guarantee service activities performed on the basis of a private contract with a foreign-registered company, if the work does not exceed 15 consecutive days at any given time;
  • for the senior executives and supervisory board members of companies with foreign participation.

Employers and employees must follow the above rules since working without a valid visa or residence permit may have severe consequences.

2. Other types of residence permits

In addition to the general residence permit for employment purposes (described above), third-country nationals with high qualifications may apply for EU Blue Card, Intracorporate Residence Permit, or Hungarian Card, whereas applicants with lower qualifications may apply for Guest-Worker Residence Permits.

All these residence permits may entitle its holder to work in Hungary.

For more information on working in Hungary, contact your CMS client partner or these CMS experts:

Andreas Köhler / György Bálint / Gergely Torma