Your employees are the most important asset your company has, and you need top talent to fill your open positions at your new location in Hungary. While you may know what kind of employees you want to hire, you may not understand all of Hungary’s employment compliance laws. You’ll have to navigate learning how to recruit and hire Hungarian employees while building a new company location and continuing to run your parent company.
Instead of attempting to navigate these complexities, remember that Globalization Partners can take the stress of hiring and compliance off your shoulders and onto our own. Our Hungary hiring outsourcing services mean we can hire employees on your behalf and assign them to work for you. Your employees will experience a better hiring process that allows them to be productive from the start, and you won’t have to worry about Hungary employment compliance.
Recruiting in Hungary
When it comes to the recruitment process, you should take some time to consider the logistics. Knowing the best channels for sourcing talent in Hungary can help you make the most of your time and resources in the country, and understanding the legal requirements for staffing can ensure that your company stays compliant overseas from day one.
Local newspapers and job boards are an excellent place to start when you’re advertising your company’s open positions in Hungary. Because personal relationships play such a significant role in business, it also helps to have personal recommendations when you’re staffing and recruiting in the country. If your business is just getting started in the Hungarian market and you don’t have any contacts to help you source talent, you might benefit from partnering with a global PEO that already has an established presence in the region.
Legal Requirements for Staffing in Hungary
As an employer, it’s your responsibility to follow Hungary’s laws against discrimination throughout the process of staffing and recruiting. The country’s constitution prohibits discrimination on the basis of origin, political belief, and worldview. Further legislation prevents unfair treatment in the workplace on more grounds as well, including:
- Racial origin
- Financial status
- State of health
- Family status
- Sexual orientation
- Membership in an organization representing employees’ interests
- Part-time nature or definite term of the employment relationship
With such a broad scope of protected characteristics to keep in mind, your company should stay as neutral as possible in job listings. Refrain from mentioning any traits that aren’t true requirements for the position. You should also avoid asking any direct questions about these qualities during interviews. Characteristics like family status might come up in conversation, but it’s essential to make sure you don’t consider this information when you’re making hiring decisions.
How to Hire Employees in Hungary
It’s important to follow Hungary’s cultural customs when you’re hiring employees. Hungarian businesses are usually hierarchical with a formal environment. You’ll have to form personal relationships and use face-to-face discussions for successful business dealings. Most Hungarians expect to get invited to after-hour social gatherings or sightseeing trips as a part of work. These opportunities will help you connect with your employees and business partners.
Hungary Employment Compliance Laws
You should note that the Hungarian labor code, the main source of Hungary’s employment compliance laws, gives employees strong protections. Employers must follow all the rules and procedures related to termination, illness, maternity benefits, and more or face fines and sanctions. The labor code permits collective bargaining agreements (CBAs) and work councils that represent employees.
You should hire employees in Hungary using a written employment contract in the local language that spells out terms such as compensation, benefits, job title, hours, holidays, and more. Make sure all salary and compensation amounts are in Hungarian forint instead of foreign currency. Most employment contracts in Hungary extend indefinitely, but you can use a fixed-term contract for temporary or seasonal work for a period of up to five years.
The regular daily working time in Hungary is eight hours, carried out five days a week, between Monday and Friday. Employees must receive at least eleven hours of uninterrupted rest period between each working period and are entitled to two full rest days in a given week. Compliance laws permit overtime of up to 250 hours per calendar year.
The Best Ways to Onboard Employees
You need certain documents from your employees to onboard them, including:
- Social security and tax number
- Registration card if the employee is from another European Union (EU) country
- Resident and work permit if the employee is from a country outside of the EU
One thing to note is that your employee’s first day of employment cannot be the same as the date you have on the employment contract. Every company must declare new employees to the tax authority at least one day before they start.
The Benefit of Hungary Hiring Outsourcing With Globalization Partners
Choosing Hungary hiring outsourcing with Globalization Partners can make a difference in your expansion. We’ll either find the right candidates for you or onboard your preferred candidates using our existing subsidiary. You won’t have to learn Hungary’s employment compliance laws, and you can feel confident knowing that you have a great team of employees.
Globalization Partners Can Make Your Expansion Easier
Globalization Partners wants to help you expand with Hungary hiring outsourcing services. Contact us today to learn more.