Simplified Employment in Hungary – Key Rules at a Glance

Simplified employment in Hungary is governed by Act LXXV of 2010. This legal framework provides a flexible form of employment, subject to strict limits on duration, headcount and administrative compliance.

1. Types of Simplified Employment and Time Limits

The law regulates the following forms of simplified employment:

• agricultural seasonal work,

• tourism-related seasonal work,

• casual work.

For agricultural and tourism-related seasonal work, the fixed-term employment relationship between the same parties may not exceed 120 calendar days per year.

Casual work is limited to:

• a maximum of 5 consecutive calendar days,

• 15 calendar days per month, and

• 90 calendar days per year.

Where seasonal work and casual work are combined between the same parties, their total duration may not exceed 120 days per year.

2. Daily Headcount Limits and Exceptions

For casual work, the law imposes a daily headcount cap, based on the employer’s average statistical workforce:

• 1 person, if no full-time employees are engaged,

• 2 persons, if 1–5 employees are engaged,

• 4 persons, if 6–20 employees are engaged,

• 20% of the workforce, if more than 20 employees are engaged.

These limits do not apply to:

• casual employment of film industry extras,

• simplified employment within social cooperatives.

A film industry extra must perform auxiliary work in a film production and may earn no more than HUF 18,000 net per day.

3. Establishment of the Employment Relationship and Restrictions

Simplified employment is established by oral agreement, provided that the employer complies with the mandatory notification requirement.

In certain cases, a standard written contract template may be used, which must be signed no later than the start of work.

Simplified employment may not be established:

• by converting an existing employment relationship,

• for the core activities of public service or public employment bodies,

• with third-country nationals (with limited exceptions for agricultural seasonal work),

• if the employer has an outstanding tax debt of HUF 300,000 or more.

4. Notification, Wages and Public Charges

The employer must notify the tax authority before work commences, including details of the employee and the type of employment.

The wage must reach at least:

• 85% of the statutory minimum wage, or

• 87% of the guaranteed minimum wage, where applicable.

The employer pays a flat-rate public charge per employee per day:

• HUF 500 for agricultural and tourism seasonal work,

• HUF 1,000 for casual work,

• HUF 4,000 for film industry extras.

No further social security contributions or personal income tax advances are payable beyond these charges.

5. Social Security Coverage and Deviations from the Labour Code

Employees engaged under simplified employment are not considered insured persons, but may acquire entitlement to pension benefits, accident-related healthcare and jobseeker’s allowance.

Several provisions of the Labour Code do not apply to simplified employment, including rules on:

• mandatory written employment contracts,

• detailed working time and payroll records,

• leave and sick leave entitlements,

• and termination-related certificates.

6. How can we support you as a law firm?

Despite its name, simplified employment involves a complex legal and tax framework. Non-compliance may result in labour law, tax or social security consequences.
Herdon Law Firm provides comprehensive legal assistance to both employers and employees in connection with simplified employment.

Employer-side support

We assist employers, among others, in:

• assessing whether a specific activity may lawfully be performed under simplified employment,

• structuring employment in compliance with statutory time and headcount limits,

• legal review of tax authority notifications, amendments and withdrawals,

• verification of wage and public charge obligations,

• preparation for and representation in labour or tax authority inspections,

• determining when simplified employment may not be applied and identifying lawful alternatives.

Employee-side support

For employees, we provide legal assistance especially in relation to:

• reviewing whether the employment complies with statutory requirements,

• examining discrepancies between actual work performed and the reported employment status,

• enforcing claims related to wages, payments and exempt income thresholds,

• clarifying entitlement to benefits and pension-related rights,

• legal representation in disputes or enforcement procedures.

Should you require legal guidance regarding simplified employment, our firm offers preventive legal advice as well as full legal representation in individual cases.