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New Special Rules for the Domestic Employment of Third-country Nationals

New Special Rules for the Domestic Employment of Third-country Nationals

Hungary
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On 18 August 2022, a government decree on special rules for the employment of third-country nationals in Hungary during the emergency was published. According to the new rules, the list of cases in which the government office is not involved in the consolidated application procedure as a special authority, has been extended. This means that starting from 19 August 2022, government offices do not participate in the consolidated application procedure if the third-country national is employed by the general contractor or its subcontractor as defined under Act VII of 2015 on the investment related to the maintenance of the capacity of the Paks Nuclear Power Plant and on the amendment of certain related acts, including employment through a temporary agency, too.

In addition, the government decree declares that the main contractor and its subcontractors working on the Paks Nuclear Power Plant shoul also be considered a VIP employer for the purposes of employment in connection with the project. Finally, the employment (including employment through a temporary agency) of a third-country national in the territory of Hungary by the main contractor and its subcontractors working on the Paks Nuclear Power Plant does not require a permit for employment.

Put simply, by not requiring the inclusion of the government offices in the consolidated application procedure, by granting shorter processing times which apply to VIP employers only, and finally by not requiring a work permit (only a residence permit will be enough) for these third-country nationals, the government simplified the employment of third-country nationals related to the Paks Nuclear Power Plant.

It is safe to say that, as labor shortages increase, more and more guest workers arrive in Hungary, mainly from neighboring countries. However, since a nuclear power plant is a very specialized field, workers from Russia are also expected to arrive in Hungary once Paks 2 receives green light and construction can fully start.

By Gabriella Galik, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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