Employment of foreign workers

The employment of third-country workers is now part of the operations of many companies in Hungary. However, it is a highly regulated and detailed area where a wrongly chosen type of permit or an imprecisely defined salary can easily lead to a refusal.

Our law firm specifically supports companies that:

• they want to recruit a third-country worker, or
• wish to regularise, amend or extend the legal status of foreign workers already residing in the country.

In all cases, we start with a preliminary consultation to discuss the company's situation, the job to be filled, the candidate's status and the types of licences available.

The legal framework - what should an employer see?

Typically for the employment of third-country (non-EU) workers:

• a residence permit for work purposes, or
• you need some kind of special work permit.

The key question for the employer is:

• the legal status of the candidate arriving or residing in Hungary;
• what type of work permit is appropriate for the position;
• whether the permit allows the planned employment (job, salary, location, employer);
• whether the company complies with the requirements on reporting labour needs and minimum wages.

With the changes to the immigration law in 2024, it is particularly important that companies think in terms of the current legislation, rather than following an old, familiar routine.

Types of work permits - blue collar and white collar

In practice, a clear distinction can be made between blue-collar (physical, skilled, unskilled) and white-collar (diploma, higher qualification) licences.

Blue collar work permits

These typically relate to physical or skilled jobs, production, logistics, agriculture, service jobs.

• Residence permit for employment purposes

Classic employment scheme, where the foreigner works for a specific Hungarian employer in a specific job. The right of residence and the right to work are combined in one permit.

• Guest worker residence permit

Typically third-country nationals employed by qualified temporary work agencies. It is very similar to the Employment Residence Permit in terms of its regulation.

• National Card

Work permit without a diploma, subject to nationality, for citizens of Bosnia and Herzegovina; the Republic of North Macedonia; the Republic of Belarus; the Republic of Moldova; the Republic of Montenegro; the Russian Federation; Serbia; or Ukraine.

White collar (diploma) work permits

These are positions that require a university degree, professional experience and typically a higher salary.

• EU Blue Card

EU regulated licence for highly qualified, qualified professionals. The legislation requires a gross minimum wage of HUF 1 001 048 (the current amount may vary according to legislation) and a relevant higher education qualification or, in the case of IT jobs, 3 years' relevant experience.

• Hungarian Card

Also a white collar, degree-related work permit.
It is specific in that:

• specifically accepts foreign diplomas,
• and only gives access to the licence for graduates in specific fields.

It is therefore of particular importance for the Hungarian Card that:

• the exact degree course the employee has completed,
• the country in which the diploma was awarded,
• whether the job to be filled is a genuine match for the diploma.

Special work permits: stay for ICT and investment purposes

Besides the classic blue and white collar permits, our office also deals with special employment schemes such as:

• ICT licence (intra-company transfer)
• Residence permit for investment purposes 

The role of the authority: employment department and labour needs

In work permit procedures, it is not only the immigration authority that makes the decision.

The key player is the specialised authority, the Employment Department, which:

• authorise or refuse to authorise the work permit;
• checks that the job, pay and working conditions comply with the law;
• check that the declared wage amount, working time, FEOR code and other data do not conflict with the detailed rules.

For work permits, it is of particular importance that:

• the declaration of labour needs must be accurate;
• the wage set must comply with legal minima, sectoral requirements and the specific requirements of the type of licence;
• the model of employment (job, location, employer) must also be in line with the practice of the authority.

Experience shows that many applications are not rejected at the immigration „front” but at the level of the employment department, typically for reasons such as:

• inadequate or excessively low wages;
• incorrect declaration of labour needs;
• a „creative” construct that does not fit into employment practice.

Therefore, Kecser Law Office pays special attention to the labour requirements and wage determination for work permits, and we prepare the documentation already at the application preparation stage in such a way that it can be defended from the point of view of the competent authority.

How do we help companies?

• legal due diligence of the proposed employment scheme;
• choosing the right type of work permit (blue collar/white collar);
• determining labour needs and wages in accordance with the law;
• checking and preparing company and employee documents;
• compiling the complete application file for a work permit;
• representation before the immigration authorities and the employment department;
• legal representation in the event of a deficiency, rejection or appeal;
• ongoing legal support in the event of extensions, changes of status and increased employment.

How does the cooperation work?

1. Preliminary consultation

We'll talk it through:

• • the activity and sector of the company,
  • the jobs to be filled,
  • the nationality and current status of the workers concerned,
  • the types of permits and risks that are realistically possible.

2. Strategy and planning

We define:

• • blue collar or white collar construction is appropriate;
  • what salary, job title, working hours and conditions should be used to prepare the application;
  • the appropriate timing for submitting applications.

3. Preparing documents

We prepare or comment:

• • the declaration of labour needs;
  • the employment contract to ensure that it is also appropriate for the purposes of immigration legislation;
  • the employee's personal documents (documents, diplomas, certificates);
  • the annexes to the application and accompanying declarations.

4. Submission and official procedure

• • we prepare the applications;
  • we liaise with the immigration authorities and the employment department;
  • we respond to shortfalls;
  • provide legal opinion and explanations to the authority as necessary.

5. Decision and follow-up

• • help you interpret the content of the permit (where, for how long and under what conditions the worker can work);
  • we draw your attention to the additional reporting obligations;
  • in the case of long-term cooperation, we monitor the expiry of licences and prepare renewals in good time.

Common mistakes we help prevent

• choosing a type of licence that is not in practice suited to employment;
• an inadequately determined wage, which is the reason why the Employment Department rejects the case;
• incomplete labour demand reporting;
• wrong FEOR code or inaccurate job description;
• a hasty request without prior legal examination;
• failure to renew, employment under an expired licence.

Request a company consultation

If you are employing third-country workers or plan to do so in the near future, it is worth discussing immigration law issues at the planning stage.

In the consultation:

• we will tell you honestly what type of licence is appropriate,
• assess the legal reality of labour needs and projected wages,
• and together we will develop a solution tailored to your company.