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Local Employment Solution in Hungary

How Boundless Employs Your Workers in Hungary

To employ your workers in a compliant way locally in Hungary, Boundless holds a temporary agency licence. According to Hungarian employment law, that is necessary because a company cannot hire people on behalf of another company unless it has the legal framework to do so, which comes with the license.

It's important to understand that while Boundless has a temporary agency license, we do not source talent. Instead, we take legal responsibility for the workers, calculating and paying social security and health insurance contributions, running their payroll, filing taxes, etc. 

The mechanics involve a three-party arrangement between the worker, the temp agency and the business benefiting from the work performed. That arrangement comes with two separate agreements - an employment one between the worker and the temp agency and a customer one between the temp agency and the business.

The contract is for a maximum of five years. During that time, the employee has access to full statutory employment rights, including paid time off and other forms of paid leave, access to unemployment benefits, and a host of protections. 

What Boundless does for you

As the temporary agency license holder, we establish and maintain the legal employment relationship with the worker. That starts with signing a fixed-term employment agreement with them for a maximum of 5 years. 

Every month we calculate the payroll, deduct all mandatory contributions such as the insurance premium, and provide the worker with a payslip. 

We file all necessary taxes and pay mandatory contributions to respective authorities.

What you do

You sign our standard commercial agreement that we use for most of the countries we are in, which you can end with one month's notice. In addition, you also sign a Labour Leasing Agreement for each employee you hire through us. 

What the Employee does

The employee signs an employment contract with Boundless before starting employment, explicitly stating that they will be performing work for the user employer. In addition, the employee also signs two Information letters with employment details, and Home Office Policy. Before the start date, the employment agreement must be signed using a Qualified Electronic Signature (which constitutes a wet-ink signature).

If an employee wants to end their employment before the contract end date, they will need to send us the resignation letter, stating their resignation and last working day. 

This page was last updated on 
22 September, 2022,
If you have questions about this page, send us an email.
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