There’s no dodgy goulash recipe involved when it comes to sourcing the right people for your new Hungarian enterprise. It’s all down to BRADFORD JACOBS’ long-term experience and on the ground know how about how the country’s employment market works. The market is regulated and governed by the local Labor code which protects employees’ rights.

There are specific rules and procedures that must be followed in cases of new employment in terms of PEO in Hungary, such as working overtime, termination, illness. The labor law also very strongly protects employees eligible for maternity/paternity leave. Firms can actually be fined and sanctioned if they do not follow the statutes. The labor code has a specific section for local employee-leasing, and also permitting collective bargaining and works councils which both represent employees’ rights.

Companies hiring people to work on behalf of other companies in Hungary, as part of an EOR and local employee-leasing services, are legally required to have a temporary employee-leasing agency license. Our BRADFORD JACOBS team make sure every employee is not at risk as we act as a local and full licensed EOR/PEO service provider.

Specific rules and procedures to be followed to ensure talented but content workers..

It is very important that when negotiating for the terms and conditions of a new job, a formal written offer letter is created, usually then signed by both parties. Generally, an employment contract is issued for an indefinite duration, but certain fixed-term contracts can run up to a maximum of five years if they are for temporary or seasonal work. Subsequently, such contracts between the same parties can be reissued, each running for five years at a time. Employment contracts must be in written in Hungarian and the language of the employee, and must include the job start date, place of work, job title weekly working hours – usually 40hrs per week for a full time contract, length of probationary period, monthly gross salary (always stated in the local currency HUF), and a job description outlining the employee’s responsibilities and duties.

If the employee’s base gross salary and/or any benefits are previously agreed in a foreign currency, like US dollars or Euros, then this must be exchanged to the Hungarian Forint and included in the employment contract. Monthly payrolls are of course provided in the local currency. Contracts must be signed at least a day before the job start date in order to file the necessary hiring report to the Hungarian Tax Authority and for social security coverage.

The local Labor Code specifies that the probationary period can be for up to three months – a maximum of 90 calendar days.

Agents of BRADFORD JACOBS are totally on the ball to make your Hungarian expansion processes painless and easy. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the expense of setting up a branch office or subsidiary. Our Hungarian agents and our worldwide Employer of Record Platform is designed to provides you with piece of mind, allowing you to concentrate on running your business.

With BRADFORD JACOBS’ in-country legal experts and our experienced and trained staff, we can guide you smoothly through the many of complex laws and regulations of hiring staff in Hungary. When negotiating terms of an employment contract and sending a job offer letter to an employee in Hungary, it is a legal requirement to put a strong employment contract in place, in Hungarian as well as English, which sets out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Hungary should always state the salary and any compensation amounts in Euro rather than a foreign currency.

With BRADFORD JACOBS’ in-country legal experts and our experienced and trained staff, we can guide you smoothly through the many of complex laws and regulations of hiring staff in Hungary. When negotiating terms of an employment contract and sending a job offer letter to an employee in Hungary, it is a legal requirement to put a strong employment contract in place, in Hungarian as well as English, which sets out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Hungary should always state the salary and any compensation amounts in Euro rather than a foreign currency.

Here’s some hugely attractive reasons you should use Bradford Jacobs’ agency services in Hungary:

  • You have a contractor overseas and you want to take them on full-time as a company employee.
  • As they’re a contractor, your company is currently in a non-compliant relationship with them.
  • Your company wants to invest in these resources and show your commitment to them by offering then full-time work under your company banner.
  • The contractors are asking for the improved status afforded by full-time employment.
  • You’re seeking cost-effective solutions in upgrading contractors to employee.
  • Legal complications need to be avoided when converting contractors to employees.
  • Avoid the costs and risk of maintaining a foreign corporate entity. You see that the compliance and financial perspective as it stands is too high in terms of investment and just does not tie-in with your long term goals.
  • It needs to be done quickly. You’d like to hire today, but are in need of an interim solution while setting up your foreign entity.

Well, our single answer to all of these dilemmas is – no problem!

For companies wishing to hire employees in Hungary, our expert advisors in Professional Employment Outsourcing  (PEO) can walk you through the nuances of employment and hiring in Hungary – and indeed in every other European state.  Within just 24 hours following your initial call to us, BRADFORD JACOBS will send you a customized proposal to match your exact specifications and requirements. You can have your employees up and running within a few days of the paperwork being signed and sealed.

Remember, whether foreign national expatriates or local national hires, BRADFORD JACOBS can assist with Hungarian business visas, work permits, local payroll, taxes, and general employment support. Our services will drastically decrease your time to market, fully compliant and without the hassles and headaches.

If you’re considering engaging a PEO, we suggest you first check out what BRADFORD JACOBS Consulting can offer…

How it works

Our aim as the Employer of Record for your international employees is to provide specific payroll, HR and ‘in-country’ compliance services.

In the first instance, BRADFORD JACOBS professionals will consult with you to understand your specific requirements and timeframes and assess the best model to provide our services. As these are co-employer and employee arrangements, there will be some important conditions for you to consider so that the PEO model remains accurate, timely and – most importantly – compliant with the rules and regulations governing staff employment in a specific country.

The most important thing we do is protect our clients and their workforce – which makes BRADFORD JACOBS the reliable partner you would want to work with.

Service Overview

BRADFORD JACOBS Consulting provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary say, as an example, in Hungary. Your candidate is hired via BRADFORD JACOBS agencies in Hungary in accordance with local labor laws and can be set up within a few days. One of our experts is assigned to work with your team, representing your company exactly as if he or she were your employee and working to meet your requirements in that country.

Our PEO service enables clients to run payroll in Hungary while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As global PEO professionals, we manage employment contract best practices, as well as severance issues and even termination if required. We also keep you up to date of any changes to local employment laws in Hungary.

Establishing a branch office or subsidiary in Hungary to engage a small team is time consuming, expensive and complex. Hungarian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Our global partners make it problem-free and an easy exercise to expand into Hungary. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws – all without the burden of setting up a Hungarian branch office or subsidiary outfit. 

Features and Benefits

  • Solutions available for all nationals.
  • Employment and business support provided by local professional partners.
  • Contractors benefit from the highest legitimate retention through the use of tax and social security treaties, expatriate tax regimes, pension schemes, double taxation agreements and tax claimable expenses.
  • Value for money and flexible fees – inclusive of Hungarian tax return and expenses claims. These are charged only when the contractor is starts working. If contactors wish to use their own accountants to file income tax returns, we pay their accountants’ fees up to the amount charged by our own accountant.
  • EUR 5,000,000 cover for employers’ and business liabilities.
  • Single point of contact, so contractors can focus on their job.
  • Extensive expertise in Hungarian tax and social security issues.

For the Employer

  • Fast international employee engagement solution.
  • Controls operating budgets as all employer costs are provided at the outset to ensure full transparency.
  • Time efficient with minimal paperwork required compared to the red tape often encountered when setting up your corporate entity.
  • Professional assistance with employment and compliance matters.
  • Reduced legal and accounting costs.
  • All statutory professional insurances are provided as part of the BRADFORD JACOBS service.

For the Employee

  • Compliant local employment contract.
  • Payroll on-time and 100 percent accurate.
  • Professional HR assistance with employment related enquiries.
  • Up-to-date information on tax regulations and compliance.

 Contract of Employment

  • Each worker is issued with a comprehensive contract of employment in dual language – in this example case, Hungarian and English.
  • An overview of the statutory provisions in Hungary will be made available to you prior to contract offer. BRADFORD JACOBS will appraise you of all the salient in-territory HR rules to ensure you have a thorough understanding of Hungarian laws and protocols.
  • In conjunction with in-country expert advisors, BRADFORD JACOBS will recommend where these provisions can easily be enhanced enabling you to provide a fully competitive salary and benefits package for all your employees.
  • Salary, commissions/bonuses and all benefits are agreed with the ‘workside’ employer and are contractually included.

HR

  • Fully managed service to assist with routine HR tasks such as absence management and expense processing.
  • Guidance on in-territory compliance requirements – such as any legal obligation to record time and overtime provisions.
  • Ad-hoc support available around the clock to support you when you need it most in the event of any disciplinary, grievance or other HR matters requiring urgent attention.
  • Regular updates provided and advice available to ensure that you are made aware of not only significant changes to existing laws but also to ensure ongoing compliance with all aspects of Hungarian employment law.
  • BRADFORD JACOBS will bring any issues to your early attention and, where appropriate, work with you to ensure internal policies and handbooks are updated accordingly.
  • Accident insurance covering occupational accidents, commuting accidents, and occupational diseases as required by Hungarian law is provided as standard.

Payroll & Settlement

  • Fully compliant international payroll funding process ensuring that employees and competent authorities are paid on time, electronically into the relevant bank accounts.
  • Statutory filing, submissions and end of year reporting completed as standard.
  • Liability payments made in line with local territory requirements to the respective competent authorities well in advance of deadlines.
  • Staff payments made to employees on a fixed weekly/bi-weekly/or monthly basis as required in local currency.
  • Electronic pay slips provided to employees.
  • We hope that you enjoy a long and mutually beneficial relationship with all your employees. If your employee decides to move on, however, you can rest assured that all leaving documentation required by him or her will be issued efficiently. According to the labor law of Hungary, your employees will be at risk of having their work permit revoked if they (i) do not perform the works for which they are employed and (ii) lose vital qualifications that are required to execute the job.
  • Our BRADFORD JACOBS’ employment solutions helps you have your mobile workforce officially employed in Hungary by our company instead of setting up your own legal entity there. You just choose the right candidate that you need to have working for you in Hungary and then leave it to us to handle all the rest – fast and hassle-free.

On-boarding

Once the contractor registers with us, we take care of all work-related permits and registration formalities. He or she sends us completed timesheets and any approved expenses. We invoice the end client. When the invoice is settled, we deduct all contributions due to the Hungarian authorities and transfer the remaining salary into the contractor’s bank of choice.

Finally, at the end of the financial year, we prepare the year-end accounts and, at the end of the assignment, we de-register the contractor.

We appreciate each situation and business is different. That is why BRADFORD JACOBS offers a consultative and bespoke solution to every client. Personalized job specifications, job offers and benefits packages are all agreed with you during the set-up process. We know one size does not fit all and rest assured we can accommodate all bespoke requirements.
Sounds good? Then do contact us to arrange an initial consultation with our team.