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.

Recent Posts

Electronic Signatures in Hungary - Leinonen
July 1, 2026

Electronic Signatures in Hungary: A Practical Guide for Foreign Directors

Managing a Hungarian company from abroad means signing documents on a regular basis, from financial statements to corporate resolutions. In Hungary, an electronic signature has…

Continue reading
Minimum Wage in Hungary in 2026 - Leinonen Hungary
June 30, 2026

Minimum Wage in Hungary in 2026: What Foreign Employers Need to Know

Hungary reviews its statutory minimum wage every year, and 2026 brings another increase. For companies running payroll in the country, these figures set the legal…

Continue reading
SZÉP Card in 2026: What Foreign Employers in Hungary Need to Know - Leinonen Hungary
May 29, 2026

SZÉP Card in 2026: What Foreign Employers in Hungary Need to Know

The Széchenyi Recreation Card, commonly known as the SZÉP Card, is the most widely used employee benefit in Hungary. For foreign-owned companies setting up or…

Continue reading