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New Act on the Employment of Guest Workers

New Act on the Employment of Guest Workers

Hungary
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The Hungarian Parliament adopted a new act on 13 June 2023 on the employment of third-country nationals. The purpose of the new regulations is to provide a transparent and unified background for the employment of guest workers coming to Hungary from outside the EU. The new act does not affect the employment of EU nationals and citizens of Ukraine and Serbia in Hungary.

The new act introduces a new residence and work permit that entitles employees coming from specific third countries (so-called guest workers) to stay in Hungary for a maximum of two years and to work for privileged employers (‘kedvezményes foglalkoztató’ in Hungarian) or to qualified temporary work agencies (‘minősített kölcsönbeadó’ in Hungarian). The ‘privileged employer means’ (i) an employer with a strategic partnership agreement with the Government, (ii) an employer who is implementing an investment of major importance for the national economy, (iii) an employer with a partnership agreement under the Priority Exporter Partnership Programme.

Compared to the current provisions, the new guest worker residence permit will be issued in a simplified procedure since the labour authority will not be involved. Instead, the employers will have to make a statement that they could not fulfil the position with a Hungarian applicant.

The government will determine the job positions in which the guest workers can be hired, the third countries from which the guest workers can come to Hungary and the maximum number of guest workers that may enter and work in Hungary per year.

The new Act will enter into force on 1 November 2023.

By Eszter Ila-Horvath, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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