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Posting of employees to Hungary

A summary of the most important duties of the Hungarian employer

Posting of workers inside the EU is – apart from unified community rules – also regulated by diverse country-specific provisions. In 2019 in Hungary violation of these rules can lead to a fine of HUF 10 000 000 (approx. EUR 31 606), so it is worth getting to know them.

As a main rule the labour law of a posted employee’s home country and the provisions of their original employment contract remain applicable. Nonetheless, specific Hungarian minimum laws must prevail – if necessary so that they temporarily replace the affected provisions of the original employment contract. These minimum laws include, for example, the minimum wage, maximum working time, the conditions for employment of pregnant women or women who have recently given birth and the employment of young people. The receiving employer has to inform the sending employer about these provisions before the posting.

As a main rule, a posted employee stays in the social security system of their home country. To certify this, they need to apply for an A1-form which can be issued by the social security institution of their home country. It is advisable for the receiving employer to check this form, because by doing so they can make sure that they are not obliged to pay social contributions with respect to the posted employee.

It is not compulsory, but is strongly recommended, also to apply for a European Health Insurance Card well before the posting begins. The card can significantly simplify use of Hungarian health care services – e.g. after a workplace accident.

The receiving employer must register employees individually, using the online database of the responsible Hungarian authority.

The posted employee is – if intending to stay in Hungary longer than 90 days within any period of 180 days – personally obliged to register with the Immigration and Asylum Office no later than the 93rd day from the date of entry. It is advisable for the employer to inform the employee about this duty well in advance.

The receiving employer must ensure that (at least as copies) the employment contract, time sheets and proof of payment of wages of posted workers are available during the whole duration of posting at the place where the work is carried out for the purpose of verification. The receiving employer must keep these documents for 3 years after the posting ends.
Source:
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I);

Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems;

Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems;

Act I of 2012 - on the Labour Code;

Act I of 2007 - on the Admission and Residence of Persons with the Right of Free Movement and Residence;

Act LXXV of 1996 - on Labour Inspection;

Act LXXVI of 2009 - on the General Rules for Initiation and Pursuing Service Activities;

https://europa.eu/youreurope/citizens/work/social-security-forms/contact_points_pd_a1.pdf

https://www.bnt.eu/hu/hirek/aktualis-jogi-hireink/2627-a1-certification-limited-binding-effect?layout=bnt:news

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