Employment in Hungary Frequently Asked Questions
This page provides an overview of employment law in Hungary and answers frequently asked questions that arise when foreign companies plan to hire employees in Hungary.
When an international business begins operating in Hungary, employment issues usually appear quite quickly. Hungarian labour law is generally structured and predictable, but several practical aspects may not be immediately obvious for foreign founders.
Many employment disputes start with a simple mistake.
Incorrect documentation or timing often becomes a problem only later — when the dispute already exists. If you are unsure whether your current employment structure is legally safe, you can review your situation in less than two minutes.
The questions below address some of the most common issues companies encounter when employing staff in Hungary.
Is a written employment contract required in Hungary?
Yes.
Under Hungarian labour law, employment relationships must be established through a written employment contract.
The contract must at least specify:
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the identity of the parties
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the employee's position
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the base salary
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the starting date of employment.
In practice, employment contracts are usually more detailed and regulate additional employment conditions.
What happens if the employment contract is not in writing?
If the employment contract is not concluded in writing, it is considered invalid under Hungarian law.
For this reason, written documentation is an essential part of lawful employment relationships in Hungary.
What is the standard working time in Hungary?
The general full-time working schedule in Hungary is:
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8 hours per day
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40 hours per week
However, Hungarian labour law allows different working time arrangements, including flexible scheduling or working time frameworks.
Is a probation period mandatory?
No.
A probation period is not mandatory, but it is commonly included in employment contracts in order to allow both parties to assess the employment relationship during the initial period.
How can employment be terminated in Hungary?
Employment relationships may be terminated through several legal mechanisms, including:
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ordinary termination
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immediate termination for cause
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mutual agreement between the parties.
Proper documentation and compliance with procedural rules are particularly important when terminating employment.
How long can the probation period be in Hungary?
Under Hungarian labour law, the probation period may be up to three months.
The probation period must be agreed in the employment contract.
During this period, either party may terminate the employment relationship without justification and with immediate effect.
Who handles payroll administration in Hungary?
Payroll administration is usually handled by accountants or specialised payroll professionals.
They calculate salaries, manage tax and social contribution obligations, and complete the required reporting to authorities.
What taxes apply to employee salaries?
Employee salaries in Hungary typically involve two categories of public charges:
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taxes and contributions paid by the employee
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employer contributions.
For this reason, the total employment cost is generally higher than the employee's net salary.
Why is employment documentation important?
Employment relationships involve several types of documentation, including:
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employment contracts
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employer notices
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internal policies
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termination documents.
Proper documentation becomes particularly important if an employment dispute arises.
When should a company consult an employment lawyer?
Many legal questions arise not when the employment contract is signed, but later, for example when:
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structuring employment arrangements
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terminating employment relationships
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handling employment disputes.
In such situations, the legal structure and documentation of employment relationships may significantly influence the outcome.
Employment Legal Consultation
Employment questions often intersect with corporate structuring, taxation and operational decisions.
If your company plans to hire employees in Hungary, reviewing the legal structure of employment relationships at an early stage may help avoid later complications.
📩 lilla.acs@dunalegal.com
📱 WhatsApp: +36 30 419 4561
Important Notice
This article provides general information about employment law in Hungary. Hungarian labour law may change, and every employment relationship requires individual legal assessment. This article does not constitute legal advice.
Related
Company Formation in Hungary – Legal Structure Matters
Employment Law in Hungary, Hiring Employees After Company Formation
Registered Office in Hungary – Why Your Company's Address Is More Than a Formality