Employment Law in Hungary, Hiring Employees After Company Formation

05/01/2026

This overview explains how employment law becomes relevant in Hungary once a company is formed, and why the organisation of work marks the first real operational phase of a business.

After the zero step

The company has been registered.
It exists as a legal entity.

As outlined in the previous article, this is the zero step.
Questions of operation begin after this point.

And operational reality almost always leads to the same place: someone starts working for the company.

Work as an operational point

Once a company begins operating, it makes decisions.
Those decisions are carried out through people.

Organising work is the first point where law is no longer a background framework, but part of daily operation.

Not in theory,
but in practice.

This is where it becomes visible:

  • how decisions are made

  • where responsibility lies

  • how the system reacts to different situations

This is not an administrative issue.
It is operation.

International operation, Hungarian legal environment

Most foreign founders establishing a company in Hungary are not doing so for the first time.

They bring experience.
They bring established organisational logic.
They bring proven operating models.

This is an asset.

In practice, these models often form the basis of the Hungarian operation as well.
Structures can be transferred.
Solutions can be adapted.

The difference is not in mindset, but in the points at which Hungarian employment law reacts.

Law appears where operation becomes concrete

The way work is performed determines when and how legal considerations enter into operation.

Different situations arise in cases of:

  • physical work

  • intellectual or professional roles

  • management positions

  • flexible or non-standard working arrangements

  • remote work

These are not theoretical distinctions.
They are operational ones.

And the law responds accordingly.

The system becomes visible under pressure

As long as operations run smoothly, the legal framework often remains unnoticed.

It becomes visible in situations such as:

  • organisational change

  • termination

  • disputes

At that point, the question is not whether documents exist.

It is whether the operation itself can be legally interpreted.

This is where real operation begins

Company formation created the legal framework.
Work gives it substance.

This is the point where law is no longer abstract, but part of everyday operation.

Where there is a company, there will sooner or later be work performed.

And where work is performed, law inevitably appears.

Contact

If you are looking to structure your operation within the Hungarian employment law environment in a way that aligns with your international model and remains workable in practice: 

lilla.acs@dunalegal.com


Related: 

Employment Law

Doing business in Hungary