When you are recruiting employees, the goal is to find the best person for each job, regardless of where they come from. If you want to staff your Hungarian business with third-country nationals, they will need work permits. This is true even if your future employees are already in Hungary. Read on to learn what to watch out for in this case, and let us help you with the new work permit application.
This article discusses work permit holders. If your future third-country national employee already has permanent residency, you can offer them a job without problems, and they can start working for you as soon as they are released from their previous obligations.
Working with a work permit
Third-country nationals need a work permit to be able to live and work in Hungary. Various permits are available to employees depending on nationality, field of expertise, salary, and even marital status. When you are planning to employ a work permit holder, you have to consider which permit they are holding currently, and which permit they will be eligible for at your business before you proceed.
Before we turn to that topic, however, let us talk about something that will affect every third-country national employee: the notice period at their current workplace, and the starting date of the validity of their new work permit. Leaving an old employer might be a sensitive topic, and much will depend on their goodwill and willingness for cooperation. As a result, you will need to consider the best interests of both your future employee and their old employer as well as your own Hungarian business.
Old and new work permit
Hungarian labor contracts usually specify a notice period of 1-3 months unless there is a mutual agreement between the employer and the employee. The old work permit will be valid until the last day of employment at the old employer, who will need to report the termination of the employment at the Immigration Office. The employee, however, will not be able to start working for the new employer until their new work permit is received. If these factors are not handled with care, that can create a gap in the employment of your future employee. Even if they are allowed to stay in Hungary with a temporary residence permit issued until the creation of the new work permit, they might face problems if they cannot work and receive a salary to cover their costs during the wait, the length of which is always uncertain.
The employee is allowed to stay with their old employer until their new work permit is issued. However, you should expect the old employer to do what is best for their business. To keep their operation intact, they will probably take advantage of the notice period to find a replacement, and then get tasks handed over to that new person. After that, they will have little incentive to retain your future employee for too long (until the new work permit arrives). This may be a risk factor even if your future employee and their old employer part ways on friendly terms – which will not always be the case.
Options depending on work permit types
Different work permit types offer different perks and conditions. Some of them don’t allow holders to apply for another type of residence permit from within Hungary (meaning they would need to go back to their home country if they wanted to apply for a different type), while some do not allow family unification. Some require specific qualifications, or specific salaries. As a result, the most clear-cut cases will be when the new position allows for the same type of work permit your employee already has.
In this sense, the EU Blue Card is especially good, because it ceases to be tied to the employer after one year. If your future employee has spent at least one year with their current employer, it will be much easier to employ them (although you will still have to wait until the end of the notice period, and the Immigration Office will still need to be consulted).
In every other case, your employee will need to apply for a new work permit, and will be allowed to start working for you only once it is granted. They can stay in Hungary with a temporary permit while between jobs, but it is essential to consider how their expenses will be covered during this time. As a result, they might want to minimize the time they will stay unemployed, for which purpose they will need to negotiate the terms of their resignation with their old employer.
The employee can submit their new work permit application before they officially resign, but that is best done after they have agreed on a course of action with their old employer. If it is expected that the employee will need to stay unemployed for some time before they can start working for you, you may consider offering a sign-on bonus to cover their costs. Alternatively, third-country nationals are sometimes advised to start a freelancing business and work as a freelancer until their new work permit is received. However, that option has its own difficulties and risks (and you might incur additional costs if you want to support your future employee in this venture), while it may be considered disguised employment by the Tax Authority, and penalized as such.
Ask for expert help
If you want a cost-effective solution for hiring a person already holding a Hungarian work permit, find an expert like Helpers who will know what to watch out for, and has ample experience submitting work permit applications on behalf of their clients.
Minimize your costs and your waiting time with expert help.
Was this article useful? Then follow us on Facebook for more tips and news about business operation and work permit application in Hungary.