Employer’s duties in case of employing foreign citizens

Part I

 

EU citizens

 

  1. Notification obligation:

However, EU citizens can be employed without any permit in Hungary, regarding the employment the following data must be reported to the territorially competent authority via e-paper at company gate:

  • employer’s basic data and number of employees
  • data of employees: age, nationality, education
  • employment data: position FEOR number, form of employment relationship, the starting date of the employment (by the first working day of the employment relationship)
  • in case of relatives: the relative status
  • in case of termination: the date of termination by the day following the termination

 

  1. Obligation to maintain:

EU citizen employees must keep the certificate issued by the Department of Employment for 3 years after the termination of the employment in case of a labor inspection.

 

  1. Application for a Hungarian tax identification number:

Employer must apply for a Hungarian tax identification number for the EU employee before the employment. This application can be submitted on behalf of the employee in person or by post. The application package should include form 23T34, a passport copy. Hungarian tax ID can also be requested on the form T1041 at the same time as the start of the employment is reported.

 

  1. Applying for a Hungarian Social Security number:

To employ an EU citizen, employer must request a Hungarian Social security number (TAJ) at the territorial competent government office. Before applying for a TAJ number, employer should ensure that the employee is not subject to social security in any other EU member state. Employee will not receive any Hungarian social security number if he/she is insured abroad, as due to the legislation employee cannot be insured in two separate countries at the same time within the EU.

For the TAJ number application employer must submit the appropriate forms (employer’s order form (form no. NYT52), employee application form (form no. NYT53), attach a copy of the employee’s identity card (passport), a copy of registration, a copy of the residence card, and a copy of the employment contract. These documents must be submitted to the territorial competent government office electronically via company gate, by post, or in person by an authorized representative.

 

  1. Registration certificate:

If an EU citizen is staying in Hungary for long term (more than 90 days within 180 days) for the purpose of working or continuing studies, he/she must have a registration certificate. This registration certificate is necessary to apply for the Hungarian TAJ number as well. With this registration certificate, the employee is entitled to a grace period of 45 days following the termination of the employment relationship to receive health insurance services.