Obligations of the employer and host organization

Information

on

Obligations of the employer and host organization

 

1.) Obligation concerning the employee’s residence permit

The employer or the host organisation must ensure that, at the latest on the day the third-country national starts working, the third-country national is in the possession of a valid residence permit authorising him/her to work for the 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 above mentioned during an official inspection.

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 organization has 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 the host organization has 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;
• ·for third-country nationals holding a residence permit for the purpose of studies, within 5 days of the start of the work.

 

 

Notification of non-commencement of employment

 

The employer or the host organization 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 organization has submitted the application for a residence permit entitling its holder to perform work and the employer or the host organization becomes aware that the third-country national will not start working for the employer or the host organization, immediately and at the latest within 5 days of becoming aware of this;
• ·if the employer or the host organization has not submitted the application for a residence permit entitling its holder to perform work, but becomes aware that the third-country national will not start working for the employer or the host organization within a reasonable period of time after the expected starting date specified in the prior agreement for the employment relationship, immediately, but no later than 5 days after the expected starting date specified in the employment contract.

 

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 organization must provide the following information on the start, non-commencement or termination of employment:

• ·employer’s or host entity’s particulars (name, address, registered address, place of business, company form, registered number),
• ·particulars of the third-country national worker or intra-corporate transferee,
• ·document number of the residence permit of the third-country national worker or intra-corporate transferee,
• ·position,
• ·the date of start or non-commencement of the actual work 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 above mentioned notifications electronically via Enter Hungary platform after electronic identification.

 

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

 

An employer or host organization that fails to notify 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 penalty 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 organization is exempted from the obligation to pay the public order penalty if it proves – as detailed above – its compliance with obligations to check and report.

 

The employer or the host organization is not exempted from the obligation to pay the public order penalty 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 penalty 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 of less than 90 days

 

At the latest within 5 days of starting the work, the host organization 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 organization 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 organization.

 

The employer carries out the above mentioned 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.

 

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

 

In particular, the employer fulfils the requirement of conduct normally expected in the given situation 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 relevant 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 depart as

1. othe guest worker left his/her registered accommodation for an unknown place before the day of departure and could not establish contact with her/him, or
2. othe guest worker has an employment relationship with another employer, and the employer is aware of the change of employer and can provide documentary evidence of it.

 

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

• ·the expelled guest worker does not have the costs covered and
• ·the expulsion was ordered because the guest worker

1. odoes not fulfill the conditions of residence,
2. ohas worked without a permit, or
3. othe entry and stay of the person 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 organization 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 organization may not employ any more guest workers beyond the existing guest worker staff for 2 years from the date of the fine.