Employees are the most important asset your company has, and you’ll need top talent to run your new location in Hungary. But to do that, you’ll have to learn how to recruit and hire employees in Hungry while building a new location and continuing to run your parent company.
Instead of attempting to navigate these complexities alone, remember that G-P can take the stress of hiring and compliance off your shoulders. As a global Employer of Record (EOR), we can hire employees on your behalf and assign them to work for you. Employees will experience a better hiring process that allows them to be productive from the start, and you won’t have to worry about Hungary employment compliance.
Recruiting in Hungary
When it comes to the recruitment process, you should take some time to consider the logistics. Knowing the best channels for sourcing talent in Hungary can help you make the most of your time and resources in the country, and understanding the legal requirements for hiring can ensure that your company stays compliant from day one.
Local newspapers and job boards are an excellent place to start when you’re advertising your company’s open positions in Hungary. If your business is just getting started in the Hungarian market and you don’t have any contacts to help you source talent, you might benefit from partnering with a global EOR that already has an established presence in the region.
Laws against discrimination in Hungary
Employers have to follow Hungary’s laws against discrimination throughout the process of hiring and recruiting. The country’s constitution prohibits discrimination on the basis of origin, political belief, and worldview. Further legislation prevents unfair treatment in the workplace on more grounds as well, including:
- Racial origin
- Sex
- Age
- Financial status
- Disability
- State of health
- Family status
- Nationality
- Sexual orientation
- Membership in an organization representing employees’ interests
With such a broad scope of protected characteristics to keep in mind, your company should stay as neutral as possible in job listings. Refrain from mentioning any traits that aren’t true requirements for the position. You should also avoid asking any direct questions about these qualities during interviews. Characteristics like family status might come up in conversation, but it’s essential to make sure you don’t consider this information when you’re making hiring decisions.
Hungary employment laws
You should note that the Hungarian labor code, the main source of Hungary’s employment compliance laws, gives employees strong protections. Employers must follow all the rules and procedures related to termination, illness, maternity benefits, and more or face fines and sanctions. The labor code permits Collective Bargaining Agreements (CBAs) and work councils that represent employees.
Companies should hire employees in Hungary using a written employment contract in the local language that spells out terms such as compensation, benefits, job title, hours, holidays, and more. Make sure all salary and compensation amounts are in Hungarian forint instead of another currency. Most employment contracts in Hungary extend indefinitely, but you can use a fixed-term contract for temporary or seasonal work for a period of up to 5 years.
The regular daily working time in Hungary is 8 hours, carried out 5 days a week, between Monday and Friday. Employees must receive at least 11 hours of uninterrupted rest between each working period and are entitled to 2 full rest days in a given week. Compliance laws permit overtime of up to 250 hours per calendar year.
Onboarding in Hungary
You need certain documents from employees to onboard them, including:
- Social security and tax number
- Registration card if the employee is from another European Union (EU) country
- Resident and work permit if the employee is from a country outside of the EU
One thing to note is that an employee’s first day of employment cannot be the same as the date you have on the employment contract. Every company must declare new employees to the tax authority at least 1 day before they start.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 global employment platform, you have the recruitment tools and services you need to find your perfect full-time or contract match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.