On 13 June 2023 , Parliament adopted Act L of 2023 on the Employment of Guest Workers in Hungary

The Act precisely defines the term “guest workers” as nationals of countries that are not neighbouring Hungary and are located outside the European Economic Area, as well as third-country nationals who arrive in Hungary for the purpose of working and who are employed in Hungary by employers satisfying the conditions, and in an employment relationship, as defined by the law. The rules applicable to third-country nationals will be laid down in a decree issued by the Minister responsible for employment in Hungary, taking into account the prior opinion of the Defence Council.

It is therefore important to note that the new rules do not apply to nationals from neighbouring countries, the EU and the European Economic Area! The law applies only to workers from specific third countries, providing that they may stay and work only in certain total numbers and for certain types of employment with preferential employers.

To read the whole newsletter below.

*Update on Act L of 2023 on the employment of guest workers in Hungary

According to a statement issued by the Ministry of Economic Development on 5 October 2023, a comprehensive intervention is needed to protect the labour market and the population of Hungary with regard to the residence and employment of third-country nationals in the country. The Hungarian Government has therefore decided to put the issue of immigration and employment of third-country nationals on a new basis and to introduce stricter rules.

The Government will develop a new bill and will completely revise the existing rules on alien policing.

The new bill will make it clear to third-country nationals that they may reside and work in Hungary temporarily, and only for the purposes, on the basis of the title, under the conditions set by, and subject to the discretion of the Hungarian state.

In order to protect Hungarian families, vacant positions must be primarily filled by activating the reserves of the Hungarian labour force, by attracting both active job seekers and inactive persons. It is the Government‘s decision of principle that foreign nationals should only be employed if job vacancies cannot be filled by Hungarian workers, and therefore the strictest possible regulations must be established.

The Government has also decided that, in order to safeguard national interests, the Act on the Employment of Guest Workers in Hungary will not be applied until comprehensive regulation on this issue is in place.