What You Need To Know About The Employment Contract

An increasing number of workers are employed by foreign employers in Hungary. In this regard, it is also worth drawing attention to the basic contractual rules, which otherwise apply to all businesses operating here.

The employment contract must be concluded between the employee and the real  employing company, not the parent company of the employer. The employee should be registered at the tax authority before the first working days starts. The contract should be signed within 8 days after the start of the employment.

The employment contract has mandatory content elements that must be included in all cases:
data suitable for the proper identification of the contracting parties,

  • the starting date of the legal relationship,
  • the employee’s job title,
  • the employee’s monthly gross base salary,
  • the duration of the trial period.

In addition to the above, there are additional rules. If the contract does not contain different provisions, then

  • the contract is concluded for an indefinite period,
  • it applies to general full-time work schedule,
  • and the place of work is the place where the employee usually performs his work.

It may also be worth including additional provisions on daily working hours, the person in charge of employer rights, possible fringe benefits, and, if necessary, the collective agreement. A job description is also mandatory, this is usually an attachment to the employment contract.

Annual holidays are regulated by the Labour Code. This does not have to be included in the contract, unless the employer offers more paid holidays than the legal requirement.

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