Contracts in Hungary

Overview by

The Active Population in Figures

Main Indicators 2004200520062007
Labor Force 390040039015003930100
Labor Force (Annual Growth, %) ----
Rate of Activity (%) 53.854.5--
Unemployment Rate (%)

Source: Ministry of Economy

Employed Persons, by Occupation (% of Total Labor Force) 2007
Agriculture 5.0%
Mining 0.4%
Processing industry 22.4%
Electrical energy, gas, water 1.7%
Construction 8.1%
Commerce, service 15.1%
Tourism 4.0%
Transport, post, telecom 7.3%
Finance 2.0%
other economic 7.1%
Administration 7.2%
education 8.3%
Healthcare 6.8%
other service 4.6%

Source: Hungary website

For Further Statistics
Labor administration and national statistics office.
For Further Information About the Labor Market
Magyarorszag, Hungary website
Public Employment service

Management of Human Resources



Method of Recruitment
Newspaper, headhunters, Internet, fairs.
Recruitment Agencies
Addeco, EastEuroCo Executive Search Group, Telkes Consulting Incorporated, HILL International.
Recruitment Websites
Job Monitor
Job Pilot

The Contract

Type of Contract
Full- and part-time contracts, assignment contracts, outsourcing contracts. More information on Just Landed website.
Breach of Contracts
  • Retirement
The old-age retirement age limit is 62 for both man and woman. Details of early retirement and pre-early retirements on Hungary website.
  • Dismissals
In Hungary, the statutory notice period ranges from 30 days (after up to 3 years of service) to 90 days (after 20 years of service). For half of the notice period, the employee must be exempted from work. Severance pay amounts to one monthly wage after 3 years of service and gradually increases to 6 monthly wages after 25 years of service.
Details in the Labour Code of Hungary, law XXII of the year 1992.
  • Other Possible Methods
Details in the Labour Code of Hungary, law XXII of the year 1992.
Labor Laws
Labour Code of Hungary, law XXII of the year 1992

Dispute Settlement


Conciliation Process

Cases of Dispute
Bad behavior at work, sexual harassement, psychological harassement, etc.
  • Procedure
Labour Code of Hungary, law XXII of the year 1992

Judicial Structures

  • Legal Framework
Labour Code of Hungary, law XXII of the year 1992

Social Partners

Social Dialogue and Involvement of Social Partners
The law allows unions to conduct their activities without interference, and the government protects this right in practice. Collective bargaining is protected by law, and it was freely practiced. Approximately 40 percent of the workforce is covered by collective bargaining agreements (almost 3,000 collective bargaining agreements existed). Workers have the right to strike, and workers exercise this right in practice.
Unionization Rate
Cooperation Forum of Unions
National Organization of Hungarian Unions
Regulation Bodies
Ministry of Labor

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