After introducing the types of residence permits for employment purposes in our previous article, this time we will examine in detail the forms of employing “ordinary workers” in Hungary based on the new legal environment. By “ordinary workers” we mean workers who do not belong to the category of highly competent employees, which will be discussed in the next part of this series.
Smartlegal Schmidt&Partners reports from Hungary:
- The basic residence permit for work purposes
As the basic title to employ third-county nationals, a residence permit for work purposes may be granted to a guest worker who
- is actually carrying out work for his employer for renumeration or
- is employed in Hungary by an employer established in a third country in order to fulfil an agreement with a domestic employer.
A residence permit for work purposes may be valid for a maximum period of 2 years and may be extended for a period not exceeding 1 year.
It shall be mentioned that the number of residence permits for work purposes and guest worker residence permits that can be issued annually in Hungary is limited by the minister for economic affairs.
One of the specific forms of employing third-country nationals is the employment on the basis of the residence permit issued for carrying out an investment. Such permit may be granted to a guest worker
- whose purpose is to carry out work based on an employment relationship to carry out a project,
- whose employer concluded an agreement with the Government to carry out an investment,
- whose employer possesses a prior group employment permit which is an official promise to employ a specified number of guest workers for a specified period of time in order to carry out an investment.
A residence permit issued for carrying out an investment may be valid until the investment is realised but no longer than 3 years.
A preferential form of the employment of third-country nationals in Hungary is the guest worker residence permit which may be provided to a guest worker
- whose purpose is to carry out actual work in Hungary based on an employment relationship in an occupation which is not excluded by the Minister responsible for employment policy,
- whose employer is a registered preferential employer or a registered qualified lender,
- who is the national of a third country listed by the relevant ministerial decree.
A guest worker residence permit may be valid for a maximum period of 2 years and may be extended for a period not exceeding 1 year.
Guest worker residence permit may only be granted to third-country nationals whose employer is either
- a preferential employer or
- a qualified lender.
Preferential employer
The below employer may qualify as preferential employers:
- an employer who concluded a strategic partnership agreement with the Hungarian Government,
- an employer who is implementing an investment of major importance for the national economy,
- an employer with a partnership agreement under the Priority Exporter Partnership Programme.
Qualified lender
In order to be registered as a qualified lender the applicant shall:
- be a limited liability company established in an EEA Member State and registered as a lender,
- employ a specified number of qualified persons to support the legal employment of third-country nationals,
- pay a deposit of a minimum of HUF 50 million as a security,
- have an average annual statistical headcount of at least 1000 person, 500 of them shall be Hungarian,
- have a solid business background,
- be a taxpayer with no public debt.
Based on the relevant ministerial decree, the nationals of the below countries may be employed in Hungary based on a guest worker residence permit:
Written by Anita Vereb
SMARTLEGAL is a team of agile business & litigation lawyers in Budapest, Hungary, helping international corporate clients and individual entrepreneurs doing business in Hungary. For more information please visit our website at Smartlegal.hu