With the continuous development of the global economy, more and more companies are turning their sights to overseas markets. In overseas markets, hiring foreign employees has become an increasingly common phenomenon. However, differences in laws and cultures between countries often pose risks to businesses when hiring foreign employees. As a popular destination for foreign investment, Hungary also has its own unique employment risks. This article will introduce things to note when hiring employees in Hungary from the following aspects.
1. Hungary's employment legal system
In Hungary, the employment legal system mainly consists of two parts: the Labor Code and the Social Security Act. The Labor Code stipulates regulations on employment contracts, wages, working hours, rest, etc., while the Social Security Act specifies the payment of social security contributions and receipt of social security benefits. In addition, there are also some laws and policies related to employment in Hungary, such as the Foreign Employment Act and the Employment Services Act.
2. Employment risks employers need to be aware of
Employment contract risks: In Hungary, employment contracts are important legal documents that stipulate the rights and obligations of employers and employees. Therefore, if there are problems with the employment contract, it could pose significant risks to employers. For example, if the employee's duties and obligations are not clearly specified in the contract, the employer may not be able to obtain legal protection when disputes arise. Similarly, if the contract does not specify the employee'swages and benefits, the employer may need to bear additional costs.
Social insurance contribution risks: In Hungary, employers are required to pay social insurance contributions for employees. If employers fail to pay social insurance contributions on time, they may face fines and other legal consequences. In addition, employers also need to pay social security benefits if employees suffer accidents or illnesses. So employers need to understand the relevant provisions of Hungary's social insurance system and pay social insurance contributions on time.
Employment relationship risks: In Hungary, the employment relationship between employers and employees is very important. If there are problems in the employment relationship, it could cause significant losses for employers. For example, if employees file lawsuits against employers for discrimination or fraud, employers may be liable for compensation payments. Similarly, if employees resign due to poor working environment or other reasons, employers may need to rehire and bear the corresponding costs.
In summary, when hiring employees in Hungary, employers need to understand Hungary's employment legal system and pay attention to risks regarding employment contracts, social insurance contributions and employment relationships. Only then can they effectively protect their own interests and lay a solid foundation for success in the Hungarian market.