In the event, posting lasts longer than 12 months, following the 12th month the employment will fall under the effect of the Hungarian Labour Code (Act I of 2012), with the exceptions below.

 

The following provisions of the Labour Code shall not apply even after the 12th month of the posting:
the rules concerning the establishment and termination of the employment contract, including non-compete clauses; and
contributions to supplementary pension schemes.

 

The 12-month period described above can be extended up to 18 months on the employer’s justified request submitted to the employment authority. The procedural rules for this notification are still unknown.


If another posted worker performs the same task at the same place (a ‘rotated posting’), the cumulative duration of the two postings periods will be considered when calculating the 12-month period. ‘The same task at the same place’ will be considered taking into account the nature of the service provided, the task performed, and the address of the workplace.

Information requirements: The information obligation set out in the Labour Code, concerning posted workers will also apply to temporary agency workers posted to Hungary from abroad. The Hungarian host company must inform the temporary work agency in writing of the essential employment conditions, applicable rules regarding remuneration before concluding the service agreement between the parties.

 

In the event of non-compliance with the newly implemented provisions concerning posted workers, the employment authority may impose an administrative fine on the employer of HUF 30,000 (approximately EUR 86) per concerned employee. The fine can be imposed repeatedly.

 

The employment authority may not impose an administrative fine on the employer in the context of a breach of the posting rules if the related rules (rights and obligations of sending employers and posted employees) are not explained on the official website of the employment authority, or the published information relating to this is incomplete.

 

The employment authority will have the competence to monitor compliance with the amended provisions of the Labour Code concerning posted workers.