Information

on the rules for levying penalties upon employers and host entities in connection with the employment of third-country nationals for the protection of public policy

The National Directorate-General for Aliens Policing (hereinafter referred to as “Directorate-General”) is ready to provide assistance for employers and host entities regarding the legislative provisions on the procedure for the imposition of penalties for the protection of public policy in connection with the employment of third-country nationals, and on the practice of the Office.

Employer: any natural person or any legal entity, or unincorporated organisation, including temporary work agencies referred to in Section 214(1)(b) of Act I of 2012 on the Labour Code, for or under the direction and/or supervision of whom the employment is undertaken.

Please note that, in accordance with current regulations, temporary work agencies are treated as employers, hence in the case workers employed by temporary work agencies, the reporting obligations of employers must be satisfied by the temporary work agencies.

Host entity:

o   the entity to which the intra-corporate transferee is transferred and that is established, regardless of its legal form, as a legal person in accordance with national law,

o   a research organisation, higher education institutions, education establishment, organisation responsible for a voluntary service scheme or an entity hosting trainees.

Obligations of employers and host entities in relation to the employment of third-country nationals

Employers and host entities have the following obligations in relation to the employment of third-country nationals:

1)      control obligation: the employer or host entity is required to ascertain on or before the first day of employment of a third-country national that the third-country national affected has a valid residence permit or some other form of residence authorisation, and has a permit prescribed in this Act for engaging in the pursuit of an occupational activity;

2)      obligation of safeguarding: the employer or host entity is required to keep a copy of the valid residence permit or other form of residence authorisation presented by the third-country national affected for the entire duration of employment;

3)      reporting obligation: the employer, or the host entity has to report to the immigration authority within 5 days:

a)      the start of employment of the third-country national,

b)      if the third-country national failed to report for work as authorised, or

c)      if employment is terminated before the expiration of the validity period of the work permit.

4)      The employer or host entity is required to submit the reports accompanied by the following information:

a) employer’s or host entity’s particulars (name, address, registered address, place of business, company form, registered number);

b) the natural identification data of the third-country national worker or intra-corporate transferee;

c) number of the residence authorisation of the third-country national worker or intra-corporate transferee;

d) job description;

e) the date of taking up work or effective date of intra-corporate transfer, or failure to do so as scheduled, or the date of termination of employment before the expiry of the work permit or single permit.

The host entity shall report at the latest within five days following the date of taking up work the employment of a third-country national holding a residence permit issued in any Member State of the European Union for the purpose of intra-corporate transfer in Hungary at the host entity for a planned duration not exceeding ninety days for the purpose of intra-corporate transfer. The report shall be accompanied by the natural identification data of the third-country national, the planned duration of intra-corporate transfer and an indication if the host entity belongs to a group of companies. report can be submitted electronically. For more details on the electronic platform of the immigration authority for procedure initiation, please click here.

Legal consequences in case the employer or host entity fails to fulfil its obligations

The immigration authority of jurisdiction by reference to the place where work is performed shall impose a penalty for the protection of public policy on the employer or host entity for any infringement of the obligations set out above, in proportion of the number of third-country nationals employed (mandatory). The penalty for the protection of public policy may be imposed in an amount up to HUF 500,000 (five hundred thousand) per employee.

Rules on the payment of penalties for the protection of public policy

The employer or host entity may be exempted from the obligation of payment of penalty for the protection of public policy if able to prove that his/her obligations, set out above, relating to control, safeguarding and reporting has been duly satisfied.

The employer or host entity shall not be exempted from the payment of penalty for the protection of public policy if the employer or host entity knew or should have been aware given reasonable care that the document presented as a residence permit or other form of authorisation turned out to be false.

The employer’s main contractor and the subcontractor employer or the host entity shall be jointly and severally liable for payment of the penalty for the protection of public policy, where they knew or should have been aware given reasonable care that the employing subcontractor employed third-country nationals without a valid residence permit or other form of authorisation, or without a permit prescribed by this Act for the purpose of gainful employment.

Third-country nationals holding a visa for a planned duration not exceeding ninety days, and persons lawfully residing in the territory of Hungary as nationals of the States listed in Annex II of Council Regulation 539/2001/EC may undertake to pursue gainful employment in accordance with Section 20(1) and (2) of the Act II of 2017 on the Admission and Right of Residence of Third-Country Nationals (RRTN), unless this Act contains provisions to the contrary.

A third-country national who has a valid residence permit issued by a Member State of the European Union for the purpose of an intra-corporate transfer and holds a valid travel document, and whose entry or residence does not represent a threat affecting public policy, public security or national security, or public health of Hungary, shall have the right:

• to move freely within the territory of the Member States of the European Union, and to enter and reside in Hungary for a planned duration not exceeding ninety days;
• to work in the framework of an intra-corporate transfer without a special permit at a host entity in Hungary.

Unless otherwise prescribed in this Act, the third-country nationals wishing to engage in gainful employment in the case of stay exceeding ninety days:

a) shall have a residence permit issued for the purpose of seasonal employment,

b) shall have a residence permit granted on humanitarian grounds, or

c) shall have a residence permit for the purpose of gainful employment, gainful activity or employment, family reunification, for carrying out scientific research or for the purpose of study, or

d) shall have an EU Blue Card,

e) shall have a residence permit issued for the purpose of intra-corporate transfer.