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Contract terms in Hungary

Fixed-term contracts in Hungary

Contract extensions in Hungary

Working hours in Hungary

Remote work in Hungary

Tailored employment contracts in 100+ countries

Employment contracts and policies in Hungary

Each country has its own rules and requirements when it comes to employment contracts. Here’s what you need to know before hiring employees in Hungary.

Written employment contracts in Hungary

In Hungary, employers are required to provide each employee with a written employment contract. If they fail to do so, the employee has 30 days after starting work to challenge the validity of the contract. Hungarian employment contracts should mention the employee’s base salary and position, and it’s also recommended to include the place where the work will take place. The employer and the employee can agree on other terms and conditions to include in the contract, as long as they are at least as favourable to the employee as the minimum standards set by Hungarian labour law.

Probationary periods in Hungary

Including a probationary period in an employment contract is a common practice in Hungary. This allows both the employer and the employee to confirm the employee’s suitability for the role before committing fully. The statutory limit on probationary periods in Hungary is three months, though this can be extended to six months by collective agreement. During the probationary period, either party can easily end the contract without notice and without giving a reason. The details of the probationary period should be included in the employment contract.

Third-party approval for employment contracts in Hungary

Unlike in some other countries, there’s no requirement to lodge employment contracts with a third party for approval in Hungary.

Employment policies in Hungary
Employers in Hungary are required by law to have certain internal policies in place. For example, since July 2023, employers over a certain size must have internal whistleblowing procedures. It’s also considered best practice to implement an anti-discrimination policy, although this isn’t a legal requirement.

Contract terms in Hungary

In Hungary, the general rule is that employment contracts are indefinite, although fixed-term contracts are permitted in certain circumstances. Read on for more information about required contract terms in Hungary.

Mandatory employment contract terms in Hungary

Mandatory elements of an employment contract in Hungary include the employee’s base salary and position. Contracts should also include other details necessary to understand the nature of the employment relationship, including:

Employee benefits.
Responsibilities.
Working hours.
Annual leave entitlement.
Probationary period.
Termination terms.

Other terms and conditions of employment in Hungary

The terms and conditions of an employment contract must be at least as generous as those outlined by labour laws and any relevant collective bargaining agreements. Beyond this, employers and employees are free to negotiate their own terms and conditions.

Changing the terms of an employment contract in Hungary

After six months of employment, an employee in Hungary can request to change from full-time to part-time hours or vice versa, to begin teleworking or to transfer to an indefinite-term contract. Employees must make these requests in writing along with the reasons behind them, and employers have 15 days to respond. If they refuse a request, they must provide a clear and justifiable reason for refusal.

Fixed-term contracts in Hungary

If an employer in Hungary only requires an employee’s services for a set period of time, it’s possible to hire them on a fixed-term contract. The maximum duration for fixed-term contracts in Hungary is five years. The fact that the contract is for a fixed term must be explicitly mentioned in the contract itself and agreed upon by both parties. If there is no fixed term mentioned in the contract or the clause is invalid, the contract is reclassified as employment for an unlimited duration.

When fixed-term contracts end in Hungary

A fixed-term contract in Hungary may end on a set date (which should be mentioned in the contract) or on the achievement of a specific goal, such as the completion of a project. Another example is when a fixed-term contract is used to replace an employee who is temporarily away from work (e.g. on maternity leave). In this case, the contract will end when the employee returns to work. The employer should tell the replacement employee how long the contract is expected to last, even if this ends up being different in reality.

Probationary periods for fixed-term contracts in Hungary

It’s possible to include a probationary period in a fixed-term contract in Hungary. However, the probationary period must be shorter than the overall contract. It also can’t be longer than the statutory maximum of three months.

Terminating a fixed-term contract in Hungary

Fixed-term contracts in Hungary end automatically when the term is reached, whether that is a specific date or another trigger. Employers can only dismiss fixed-term employees before the term if one of the following conditions apply:

The company is undergoing liquidation or bankruptcy proceedings.
Termination is necessary due to the employee’s ability.
Maintaining employment is no longer possible for unavoidable external reasons.

To terminate the contract, the employer must give the employee the appropriate notice, which is usually 30 days (35 days after three years of employment).

Employers can also choose to dismiss employees on fixed-term contracts without notice. However, they must pay severance pay of 12 months’ wages. If there is less than a year left on the employee’s contract, the employer only has to pay out the amount the employee would have earned for the remainder of the contract.

Contract extensions in Hungary

As mentioned above, the maximum duration of a fixed-term contract in Hungary is five years. However, even within this time frame, employers are not allowed to conclude multiple successive fixed-term contracts (chain contracts) unless they have a legitimate interest in doing so and it doesn’t infringe the legitimate interests of the employee.

For example, the Supreme Court of Hungary (the Curia) dealt with a case in which an employer renewed a fixed-term contract 19 times in five years. As the employer was unable to state a specific, concrete, economic, or service-related reason for this chain of contracts, they were judged to be invalid. However, courts have also found cases of multiple successive contracts to be legitimate in other cases when the employer has a legitimate interest in concluding them.

What if the employee keeps working after the expiration of the contract?

If an employee on a fixed-term contract continues working after its expiration with the knowledge of their direct supervisor, the relationship is theoretically transformed into a permanent employment contract. However, this poses a problem because employment contracts are required to be in writing in Hungary. This means there are two options in this situation:

The employee challenges the validity of the now-permanent employment contract within 30 days of their fixed-term contract coming to an end. The employer must then either conclude a valid written contract or terminate the contract without notice. In the latter case, they must pay the employer absentee pay based on their length of employment.
The employee does not challenge the validity of the contract. In this case, a valid unlimited contract is established between the two parties. The employer may still be fined for labour law violations (i.e. not providing a written contract).

Working hours in Hungary

Full-time employees in Hungary typically work 40 hours per week, spread out over five days. Read on for more information about standard and maximum working hours in Hungary.

Maximum working hours in Hungary

Hungarian employees can work a maximum of 12 hours per day. Weekly working hours may not exceed 48 hours, including overtime.

Exceptions to maximum working hours in Hungary

Workers on stand-by duty, such as on-call doctors, can work more than the normal maximum working hours in Hungary. The same is true for workers who are relatives of their employer or the owner of the business they work for. In both of these cases, the employee must agree to their exemption from the maximum working hours rule.

Overtime in Hungary

Overtime in Hungary is generally restricted to 250 hours per calendar year. However, this can be increased to up to 300 hours by collective agreement. It’s also possible for employees to agree to work an additional 150 hours of overtime in a given year upon agreement with their employer. Any such agreement is terminated at the end of the calendar year.

Pregnant women and mothers of children under the age of three can’t be asked to work overtime in Hungary. The same is true of fathers of children under the age of three, if they are raising the child alone. No employee can be asked to work overtime if doing so would pose a risk to their health.

Pay for overtime in Hungary

Overtime in Hungary is generally compensated at 150% of the employee’s normal hourly rate. This is increased to 200% for work completed on rest days. Alternatively, it’s possible to pay employees a lump sum for any overtime worked if this is stated in the employment contract.
Employers and employees can also agree to time off in lieu of pay, though the 50% supplement still applies. Senior executives and employees who work flexible schedules are not entitled to overtime pay.

Breaks and rest periods in Hungary

Employees who work more than six hours in a day are entitled to a meal break of at least 20 minutes. If an employee works more than nine hours, they are entitled to an additional 25-minute break.

Employees are also entitled to a minimum of 11 hours of rest time between shifts. This is reduced to eight hours for employees working split shifts, continuous shifts, multiple shifts, or doing seasonal work. All employees are entitled to two full days of rest per week, one of which must be a Sunday at least once a month. Alternatively, they can be granted an uninterrupted rest period of at least 48 hours, including one full calendar day. Employees should usually be granted one rest day after every six days of work.

How many hours can a student work in Hungary?

An international student living in Hungary on a residence permit granted on grounds of studies may work for 24 hours per week during term time and for a maximum of 66 working days outside of term time. Students don’t need to apply for work permits as long as they stay within these limits.

Remote work in Hungary

In many countries, remote work has gained significant importance over the last few years — and Hungary is no exception. Many people in Hungary work partially or totally from home or another location away from their employer’s premises.

Different types of remote work in Hungary

Legally, remote work in Hungary is divided into two categories: telework and home office work. Home office work is occasional remote work that takes place on an ad hoc basis. This type of remote work is not regulated by the Labour Code.

However, the Labour Code does regulate teleworking, which is defined as work carried out outside the employer’s premises on a regular basis. Teleworking must be agreed upon by the employer and the employee. Many companies in Hungary have internal regulations governing teleworking, though this is not currently a requirement.

Employers’ responsibilities concerning remote workers in Hungary

Employers of employees who regularly work remotely (teleworkers) must usually provide their employees with the IT equipment they need to work, such as a laptop, mouse, and keyboard. They don’t usually need to provide other equipment like chairs or desks. Employers must either reimburse employees for the additional costs of working from home or pay them a lump sum for each day of telework.

Employers also have some health and safety obligations concerning remote workers. For example, they must inform employees in writing about the rules related to working conditions. Teleworking employees are covered by legislation governing work-related accidents or illnesses, as long as these are not the result of the employee’s non-compliance with health and safety information provided by the employer.

Tailored employment contracts in 100+ countries

Like all countries, Hungary has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.

Thankfully, our team is experienced in drawing up tailored, compliant contracts in Hungary (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.

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FAQ's

What law governs employment contracts in Hungary?

The Labour Code is the main law governing an employment contract in Hungary and the wider employment relationship. It sets the minimum rules for forming, performing, changing and ending employment, as well as working time, pay and leave.

A collective bargaining agreement may apply at company or sector level, and internal policies can cover day-to-day workplace matters. An individual employment contract can generally depart from the Labour Code or an applicable collective agreement only in the employee’s favour unless the relevant rule expressly permits a different result. Collective agreements, however, may depart from many Labour Code provisions in either direction where the Code does not prohibit this.

Separate legislation covers areas such as occupational safety, equal treatment, tax and social security. Some workers, including public-sector employees, may also fall under special employment rules rather than the ordinary Labour Code. Before drafting, an international employer needs to confirm which rules govern the role and whether a collective agreement applies.

Are written employment contracts required in Hungary?

Yes, every employment contract in Hungary must be put in writing. The employer must ensure that the document is ready, and both parties must agree to its terms and sign it.

If the contract is not written, only the employee may invoke its invalidity, within 30 days of starting work. A missing document does not remove the employee’s rights. If the employee does not invoke invalidity within that period, the employment relationship is generally treated as valid despite the failure to use written form. It leaves the agreed role, pay and other terms harder to prove and may expose the employer to enforcement action.

Both parties should sign the written labour contract before work begins, and the employer should keep it with the employment records. The employer must also give the employee written information about important working conditions that do not all have to appear in the contract itself.

That information covers matters such as working time, salary payment, leave and termination. It must generally be provided within seven calendar days after the employment relationship begins. Changes to the notified information must normally be communicated in writing no later than the date on which they take effect. Keeping the contract separate from this written notice makes routine updates easier, provided both documents remain consistent.

What types of employment contracts exist in Hungary?

Employment contracts in Hungary can be indefinite or fixed-term and either can generally be full-time or part-time. The default is an indefinite, full-time relationship unless the parties agree otherwise in writing.

A fixed-term contract ends on the date or event named in the agreement. The Labour Code limits its duration and renewal. Indefinite employment has no agreed end date and continues until the employer or employee lawfully ends it.

The Labour Code also recognises arrangements designed around how or where work is performed. These include telework, job sharing, employee sharing, on-call work and temporary agency work. Simplified employment is available for certain short-term, seasonal or occasional work under separate notification rules. Temporary agency work also requires a compliant relationship between the agency, employee and user enterprise and is subject to additional registration and assignment rules.

These forms are not just different labels. Each changes the employer’s documentation, scheduling or registration duties. The employer needs a contract that reflects the actual role, expected duration, hours and working arrangements rather than the option with the least paperwork.

What must be included in an employment contract in Hungary?

Every employment contract in Hungary must identify the parties and state the employee’s base salary and job title. If it does not specify a fixed term or part-time hours, the law treats the employment as indefinite and full-time.

The parties commonly include the start date, workplace, duties, probation and any agreed benefits or confidentiality terms. If no start date is agreed, employment generally begins on the day after the contract is concluded. If no workplace is specified, the employee’s usual place of work applies. Regular telework must be agreed in the contract. A probationary period should also be written into the agreement if the employer wants one, because it cannot simply be imposed later. The ordinary maximum is three months, although a collective agreement may permit a probationary period of up to six months. A renewed fixed-term contract for the same or a similar role within six months cannot ordinarily include another probationary period.

Not every working condition belongs inside the employment contract. The employer provides a separate written notice covering matters such as daily working time, other elements of pay, the payday, annual leave and the rules used to calculate notice.

The separate notice gives the employee the other information required by law while keeping the contract focused on agreed terms. Any applicable collective agreement also needs checking before the documents are finalised.

How do fixed-term contracts work in Hungary?

A fixed-term contract in Hungary must state its end date or identify another event that will end the employment. If the term is missing or invalid, the law generally treats the employment as indefinite.

The total duration of a fixed-term contract, including extensions and a further fixed term agreed within six months, normally cannot exceed five years. An end event cannot depend only on one party’s wishes, and the employer should tell the employee when that event is expected if no calendar date is available.

An employer needs a legitimate employer interestto renew or extend a fixed term or to enter another fixed-term contract within six months after the previous one ends, and the change cannot infringe the employee’s interests. This stop repeated short contracts from being used to avoid indefinite employment. The duration of the renewed or extended contract should also be proportionate to the legitimate interest relied upon.

The agreement ends automatically when the term expires, but the employer can end it early only through a route allowed by the Labour Code. Ordinary employer notice during a fixed term is limited to specified grounds, including insolvency proceedings, a reason based on the employee’s capability or an unavoidable external circumstance that makes continued employment impossible. The employer may also terminate a fixed term with immediate effect without giving a reason, but it must then pay the employee up to 12 months’ absence pay or, if shorter, the pay remaining until expiry. The stated term should match the temporary need, with a record of why any renewal remains justified.

Can an employer modify an employment contract in Hungary?

Not unilaterally in most cases.An employer generally cannot change an employment contract in Hungary on its own. The employer and employee must agree to the change in writing. This applies to base salary, job title, agreed hours and permanent changes to the way the employee works.

An employer can give instructions within the existing contract and may temporarily assign different duties or a different workplace within the legal limits. It cannot use that authority to change the agreed role permanently. Temporary employment outside the contract is generally limited to a combined total of forty-four working days or 352 scheduled hours in a calendar year, subject to proportionate adjustment and any applicable special rules. A change that goes beyond those limits needs a signed amendment to the employment contract.

Eligible employees can request changes such as part-time or full-time work, telework or indefinite employment. Except during the first six months of employment, an employee may request an amendment after the employer provides information about available full-time, part-time, telework or indefinite positions. A parent of a child under eight or a qualifying carer may also request a change to the workplace, work schedule, telework or part-time work. The employer must respond to a qualifying written request within 15 days and give reasons if it refuses.

Family-leave rules can also require an employer to offer an amendment. Written records show whether the parties agreed a lasting change or the employer gave a temporary instruction.

Can an employer terminate an employment contract in Hungary?

Yes, an employer can terminate an employment contract in Hungary through notice, immediate termination or a mutual agreement, provided the method meets the Labour Code rules. A fixed-term agreement can also end automatically when its stated term expires.

If the employer gives notice, its reason must relate to the employee’s conduct or capability, or to the employer’s operations. The employer must give notice in writing and observe the notice period. Immediate termination is reserved for serious breaches or conduct that makes continued employment impossible, and strict timing rules apply.

Before ending a labour contract, the employer must check for protected periods, protection near retirement, collective redundancy duties and any applicable collective agreement. Fixed-term employment has additional limits on early termination.

A mutual agreement requires the employee’s free consent and should state the end date and payments. The employer should choose the correct method before communicating a final decision because each method requires different steps and payments.

How does Hungarian law treat remote work in an employment contract?

Regular remote work counts as telework and must be agreed in the employment contract. The contract must state that the employee performs all or part of the work away from the employer’s premises.

The contract or supporting policy should state the work location, equipment, cost reimbursement, availability, data-security rules and how the employer may give instructions or check performance. Occupational safety and privacy duties continue to apply when the employee works remotely.

An employment contract in Hungary can support fully remote or hybrid work, but the written terms should match what happens in reality. Occasional home working is not necessarily the same as regular telework, so an ad hoc arrangement should not quietly become a permanent pattern without documentation.

Employers also need to consider tax, social-security and immigration issues if the employee works from another country. Those cross-border consequences arise from the work location, not simply from what the contract calls the arrangement.

Can a collective bargaining agreement override the terms of an individual employment contract in Hungary?

Generally, an individual employment contract may depart from an applicable collective agreement only in the employee’s favour, unless the collective agreement itself permits a different arrangement. A less favourable individual term will therefore normally be displaced by the binding collective provision.

The relationship between the Labour Code and a collective agreement is more flexible. Unless the Labour Code expressly prohibits or limits deviation, a collective agreement can modify many statutory rules, sometimes even to the employee’s disadvantage. Certain chapters or provisions allow deviation only in the employee’s favour or do not allow it at all.

Before finalising employment contracts in Hungary, an employer needs to check whether a company or sector collective agreement applies and which clauses it covers. A contract term that conflicts with a binding collective rule may be unenforceable even though both parties signed it.

The employer must check the Labour Code and any collective agreement before setting individual terms. A valid contract term that is more favourable to the employee normally continues to apply.

What employment contract services does CXC provide in Hungary?

CXC provides employment contract support in Hungary from initial drafting through to amendments, renewals and offboarding, with local employment requirements built into the process.

Through our Employer of Record service, CXC prepares contracts based on the employee’s role, salary, working hours, location and benefits, and makes sure the agreed terms are carried through to payroll and employment records.

We also support contract changes during employment, including salary updates, role changes and other agreed amendments, so the employee’s documentation stays aligned with their current terms.

For international companies, this gives HR one local process for managing Hungarian employment contracts without having to handle the legal and payroll administration separately.

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