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Modification of the Provisions on Guest workers: They Are Not Allowed to Work in the Public Sector

Modification of the Provisions on Guest workers: They Are Not Allowed to Work in the Public Sector

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A new decree entered into force on 9 April 2024 on the ban of employment of guest workers in the public sector in Hungary.

The following entities may not establish an employment relationship with a guest worker to work on the basis of a work permit, a residence permit for employment purposes or a residence permit for guest workers issued to carry out an investment project in Hungary:

  1. a budgetary organisation under the direction or supervision of the Government,
  2. a budgetary organisation under the direction, control or maintenance of another budgetary organisation and forming part of the central sub-system of public finances,
  3. a company in which the Hungarian State has direct or indirect majority ownership, and it is owned by a budgetary body, or by an economic corporation owned by a budgetary organisation, or by a subsidiary of an economic corporation belonging to the latter category.

However, the new regulation makes one exception: the person designated by the Government may grant an exemption from the prohibition in respect of a company for compelling reasons, on the initiative of the competent Minister.

The new decree will not affect the employment relationships established before the date of the entry into force of the new decree. In other words, guest workers currently working in the public sector, in state-owned companies, will be able to keep their jobs.

By Eszter Ila-Horvath, Attorney at Law, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com