Obligations of the employer and host organization regarding third-country nationals

Information

1) Obligation concerning the employee’s residence permit

 

The employer or the host organisation must ascertain, at the latest on the day the third-country national starts working, that the third-country national is holding a valid residence permit authorising him/her to work for the respective employer or the host organisation.

The employer or the host organisation must keep a copy of the residence permit presented by the third-country national for the duration of employment.

The immigration authority may ask you to present the abovementioned document during an aliens policing control. 

2) Notification obligations

Notification of the start of employment

The employer must notify the immigration authority of the start of the employment of a third-country national within the following deadlines:

 ·if the employer or host organisation submitted the application for a residence permit entitling its holder to perform work, within 5 days of receipt of the residence permit entitling its holder to perform work issued to the third-country national,

 ·if the employer or host organisation submitted the application for a residence permit entitling its holder to perform work but the third-country national enters Hungary after the date of receipt (within a reasonable time from the expected start date agreed in the preliminary agreement), within 5 days of the date of entry,

·in cases not covered by the previous two cases, within 5 days of receipt of the residence permit entitling its holder to perform work issued to the third-country national;

·in case of third-country nationals holding a residence permit for the purpose of studies, within 5 days from the start of the work.

Notification of non-commencement of employment

The employer or the host organisation must notify the immigration authority if the third-country national does not start the authorized work within the following deadlines:

·if the employer or the host organisation submitted the application for a residence permit entitling its holder to perform work and the employer or the host organisation becomes aware that the third-country national will not start working for the employer or the host organisation, immediately but at the latest within 5 days of becoming aware of this information;

·if it was not the employer or the host organisation that submitted the application for a residence permit entitling its holder to perform work, but it becomes aware that the third-country national will not start working for the employer or the host organisation within a reasonable period of time after the expected starting date specified in the preliminary agreement for the employment relationship, immediately, but no later than 5 days after the expected starting date specified in the contract of employment.

Notification of termination of employment

The employer or the host organisation must notify the immigration authority within 5 days of the occurrence of the fact or circumstance on which the notification is based that the work will be discontinued within the period of validity of the residence permit entitling its holder to perform work.

The employer or the host organisation must provide the following information on the start, non-commencement or termination of employment:

·employer’s or host entity’s particulars (name, address, place of establishment, i.e.,  registered address, place of business, company form, registered number),

·personal identification data of the third-country national employee or intra-corporate transferee as a natural person,

·document number of the residence permit of the third-country national employee or intra-corporate transferee,

·position,

·the date of start or non-commencement of the actual employment or intra-corporate transfer, or the date of termination of employment before the expiry of the work permit or single permit.

The employer carries out the abovementioned notifications electronically via the EnterHungary platform after electronic identification.

Legal consequences of failure to notify the authority of the start, non-commencement or termination of employment

An employer or host organisation that fails to notify the authority of the start, non-commencement or termination of employment or fails to comply with its obligation to ascertaining facts with regards to the residence permit shall be subject to a public order fine by the immigration authority, in proportion of the number of third-country nationals employed, in an amount up to HUF 1,000,000 (one million) per employee.

The employer or the host organisation shall be exempted from the obligation to pay the public order fine if it proves its compliance with the obligations to check and report, as detailed above.

The employer or the host organisation shall not be exempted from the obligation to pay the public order fine if it knew, or, with due diligence and attention it could have known that the document presented as a valid residence permit or other residence permit document was false.

The main contractor and any intermediate subcontractors shall be jointly and severally liable with the subcontracting employer or the host entity for the payment of the fine if they knew, or, with due diligence and attention, they could have known that the subcontracting employer was employing a third-country national without a residence permit.

Notification of an intra-corporate transfer not exceeding 90 days

At the latest within 5 days of starting the work, the host organisation must report if a third-country national holding a residence permit issued by a Member State of the European Union for the purpose of intra-corporate transfer is to work in Hungary for the host organisation for an intended period not exceeding ninety days.

The notification must include

·natural identification date of the third-country national,

·the planned duration of the intra-corporate transfer and

·the affiliation of group of companies of the host organisation.

The employer shall carry out the abovementioned notification electronically through Enter Hungary  platform after electronic identification.

Notification of changes to employment conditions in the case of a residence permit for guest workers

An employer employing a foreigner with a residence permit for guest workers, if there is a change in the terms and conditions of employment of the guest worker it employs, must notify the National Directorate-General for Aliens Policing within 5 days of the change via the Enter Hungary  platform, by providing the following information:

·employer’s or host entity’s particulars (name, address, registered address, place of business, company form, registered number),

·natural identification data of the guest worker,

·document number of the residence permit of the guest worker,

·the name and FEOR number of the authorized and changed profession,

·the address of the authorized and changed place of work in Hungary.

3) Specific obligations for the employer of the guest worker

The employer must ensure that the guest worker holding

·a residence permit issued for employment for the purpose of investment,

·a residence permit issued for the purpose of employment, or

·a residence permit issued for guest workers

shall leave the territory of Hungary no later than 6 days after the termination of the employment relationship in the event of termination or cessation of the employment relationship.

If the employer does not comply with this obligation, the immigration authority will impose a fine of HUF 5,000,000 on the employer.

The employer is exempted from paying the fine if it proves that it has acted in accordance with the normal conduct expected under the given circumstances in fulfilling the abovementioned obligation.

In particular, the employer fulfils the requirement of normal conduct expected under the given circumstances if it fully complies with its obligation to notify the immigration authority and can prove that

·the guest worker was informed, in a language which (s)he understood, about the legal consequences of aliens policing nature of the termination of employment, and about the obligation for leaving the country and the related sanctions;

·the employer had a flight ticket under the name of the guest worker to the country of origin or to the country of departure indicated in the declaration part of the application, or to whom the guest worker has presented such a flight ticket and can provide documentary proof of this, and 

·the reason why the guest worker did not leave was that

·the guest worker left his/her registered place of accommodation for an unknown place before the day of exit and could not establish contact with her/him, or

·the guest worker has an employment relationship with another employer, and the original employer is aware of the change of employer and can provide documentary evidence of it.

The employer must reimburse the costs of return, removal and aliens policing detention advanced by the immigration authority and the body established for general police duties if

·the guest worker under return cannot cover the costs and

·the return was ordered because

·the guest worker does not meet the conditions of residence,

·the guest worker has worked without a permit, or

·the guest worker’s entry and stay threatens or endangers public health.

If in the event of termination or cessation of the employment of the guest worker, the employer or the host organisation fails to comply with its obligation in connection with the guest worker’s obligation to leave the country or to report the non-commencement or termination of employment of the guest worker in the case of 30% of the number of guest workers it brought to Hungary in a calendar year, the employer or the host organisation may not employ any more guest workers beyond the existing guest worker staff member for 2 years from the issuance date of the fine.