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IMPACT – MEDIUM
What is the change? Internal reorganization in Hungary’s immigration office has led to processing delays that could last through May.
What does the change mean? Employers and non-EU nationals seeking single permits (i.e., work/residence permits) should expect processing times of up to 70 calendar days and even longer for some nationalities.
Background: While Hungarian law specifies that processing may take up to 70 days, actual processing times may be shorter or longer. In many cases, processing will be shorter for applicants whose applications are properly completed and who are not missing any supporting documents. For certain nationalities, however, applications may receive more scrutiny and applicants may be brought in for an interview, which can delay processing beyond 70 days.
BAL Analysis: Businesses should take note of the delays and plan accordingly.
This alert has been provided by the BAL Global Practice group and our network provider located in Hungary. For additional information, please contact your BAL attorney.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Hungary has launched a program to provide expedited single permits to certain third-country nationals working in high-demand economic sectors.
What does the change mean? Serbian and Ukrainian nationals applying for single permits for a select group of jobs will be eligible for expedited single-permit processing of two to three weeks. The list of jobs includes mostly engineering, IT and blue-collar jobs, and is subject to change. Hungary is also expected to eventually open the program to additional nationalities.
Implementation time frame: Immediate and ongoing.
Visas/permits affected: Single permits (work/residence permits).
Who is affected: Serbian and Ukrainian nationals applying for single permits in jobs where expedited processing is available.
Impact on processing times: Officials have said processing times will range from two to three weeks, though it is possible processing might take longer as the new program is implemented.
Background: The effort to provide expedited processing was undertaken to help certain third-country nationals gain speedier access to the Hungarian labor market. For the time being, the program is available to workers in 37 occupations, mostly in the areas listed above. It remains unclear whether documentation requirements will be different for those applying through the expedited processing program.
BAL Analysis: The change could make it significantly less time-consuming for businesses to bring Serbian and Ukrainian workers to Hungary in certain, high-demand economic sectors. BAL will continue to follow the expedited processing program in Hungary, including the possible expansion of the program to additional job categories and nationalities and any information about what documents are required.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – LOW
What is the change? Hungary has announced new minimum wages for 2017.
What does the change mean? Unskilled workers must earn a minimum of 127,500 forints per month (about US$430). Skilled workers must earn a minimum of 161,000 forints per month.
Background: The 2017 minimum wages represent a 14 percent increase for unskilled workers and a 24 percent increase for skilled workers. The 2016 salary minimums are 111,000 forints gross per month for unskilled workers and 129,000 forints gross per month for employees with at least a secondary school education.
In addition to meeting minimum wages, companies that sponsor foreign employees and assignees must meet salary thresholds that are based on average salaries for the specific job.
BAL Analysis: Employers should factor the new minimum wages into their 2017 budgets.
What is the change? Hungary has implemented new regulations in order to stay in compliance with a European Union directive on intracompany transfers.
What does the change mean? The Labor Office will require that non-EU nationals transferring from within the EU to work in Hungary for more than three months have, among other provisions, an employment contract establishing that the employee will not be paid less than Hungarian employees in similar jobs, relevant educational or professional certifications, health insurance, a valid address in Hungary and financial means of support.
Background: Hungary implemented the regulations in order to stay in compliance with a 2014 EU directive on intracompany transfers. Among new requirements for non-EU nationals being sent to work in Hungary for more than three months:
Documents must be submitted at least 20 days before the start of employment. Non-EU nationals transferring to Hungary for less than three months will not be required to obtain a separate Hungarian permit, provided that the transferee has a valid permit issued by another EU member state and the activities the transferee will be performing in Hungary are covered by his or her permit.
BAL Analysis: The implementation of the changes described above came one month after Hungary implemented new rules for posted workers. Businesses should take note of the changes both for intracompany transferees and posted workers, and should contact BAL with any questions about remaining in compliance with any of the new regulations.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com
What is the change? Hungary has adopted a new regulation that requires residents of Hungary sponsoring family members on residence permit applications to provide notarized statements confirming that they can provide care and financial support for the applicant.
Background: Non-EU nationals applying for a temporary settlement permit, national settlement permit or an EC permanent residency permit must establish, upon submitting the application, evidence of housing and “livelihood” in Hungary. Evidence of livelihood can be established with a statement from a family member living in Hungary confirming that the family member can provide care and financial support for the applicant. Under a new rule, these statements must be attested by a notary public in Hungary before they are submitted.
BAL Analysis: The change adds a step for some applicants seeking temporary settlement, national settlement or EC permanent residency permits. Applications without proper supporting documentation risk being turned away or unnecessarily delayed.
What is the change? New rules designed to better track employees posted to work in Hungary took effect this month.
What does the change mean? As of Sept. 1, EEA companies or their proxies must complete an online registration process and provide the names of employees who are transferred to work in Hungary. The change was made to keep Hungary compliant with a European Union directive on posted workers, but questions remain about how the changes will be implemented and enforced.
Background: The regulation was adopted in July to keep Hungary in compliance with an EU directive. Affected companies must register online and, after completing registration, notify the Hungarian government of any EEA-based employees who are transferred to Hungary. Employers may use third parties to complete the registration and notification processes and will not be required to provide any company documents when submitting the names of employees posted to Hungary. Authorities stress, however, that legal entities not have more than one username and password. EEA employers should also note that the online reporting process does not replace any previously existing immigration or labor reporting requirements.
BAL Analysis: EEA companies and Hungarian host companies should take note of the change. BAL, through its network partner in Hungary, continues to seek clarification on how the new regulations should be interpreted and how they will be enforced. In particular, the regulations place the burden of online registration on EEA companies posting employees to Hungary, but indicate that enforcement checks and sanctions, if warranted, will be imposed against the Hungarian host companies. Until further clarification is provided, both EEA sending companies and Hungarian host companies should be prepared to follow the regulations as written, coordinate with each other and contact BAL with any questions about what procedures should be followed when workers are posted to Hungary.
What is the change? Hungary is set to expand its government bond-based long-term residency program to cover dependent children and parents and to provide faster processing times beginning Friday.
What does the change mean? Dependent children (no matter their age) and parents will be permitted to reside in Hungary along with the principal applicant. Authorities have also eliminated a six-month waiting period and will issue residence permits as soon as applications are adjudicated. Processing times will be reduced to 30 days.
Background: The Hungarian Parliament created the government bond-based long-term residency (investor residency) program in 2012. The program provides permanent residence to non-EU nationals who are able to invest at least € 300,000 in government bonds in addition to paying a € 60,000 government processing fee. The investment is then returned after five years with no interest payable on it. The program provides residency to principal applicants and their spouses and dependent children under the age of 18. An amendment to the law, passed this year, will additionally provide residency to dependent children over the age of 18 and dependent parents. Processing times will also be reduced and a six-month waiting period will be eliminated so that permits are issued as soon as applications are adjudicated. The changes take effect July 1.
BAL Analysis: The changes will make it easier for foreign investors and their families to obtain residency in Hungary.
IMPACT – HIGH
What is the change? The Immigration Office in Budapest has announced that certain work and residence permits issued in October and November were accidentally issued with the wrong data uploaded into the permits’ biometric chips.
What does the change mean? Affected permit holders will be notified by registered mail and will be required to attend an appointment at the relevant Immigration Office, sit for fingerprints and photo and wait approximately two weeks for a new permit.
BAL Analysis: Employees and family members who were issued permits in October or November last year should be aware that they may have incorrect data in their permits and will be notified if their permits are among those that need to be replaced.
What is the change? Hungary has taken steps to ensure that the total number of non-EU nationals working in the country does not exceed the monthly average of job openings.
What does the change mean? Hungary issued a decree on the matter July 18, but there are still a number of questions about how the decree will be implemented. It is possible that the monthly average of job openings will exceed the number of non-EU nationals. If the number of non-EU nationals legally working in Hungary does not increase significantly, the quota may not have much impact.
Background: The decree is part of a broader effort in Hungary to limit the impact that immigration is having on the country.
The goal of the decree is to ensure that the total number of non-EU nationals working in the country does not exceed the monthly average of open jobs. Job openings will be measured by counting published workforce requests. Openings for government jobs and “workforce requests aimed at the employment of third-country nationals” will not be counted.
Questions remain both as to how, exactly, the figures will be counted – including what it means for a job request to be “aimed at the employment of third-country nationals” – and what policy measures might be taken once the figures are tallied.
BAL Analysis: While the Hungarian government has sent a signal that it is interested in stricter regulation of the number of non-EU nationals working in the country, there are still questions about how the cap on non-EU workers will be set. If the cap is high enough, it may not have an impact on business recruiting. BAL will monitor the implementation of the decree and alert clients to significant developments.
What is the change? Hungary’s implementation of a single work-and-residence permit puts new obligations on employers and employees.
What does the change mean? Employees who enter Hungary without a visa must be present at the Immigration Office at the time of application and collection of the permits. In addition, processing times are longer than before.
Background: As of Jan. 1, Hungary implemented a single work-and-residence permit as mandated by recent European Union regulations. Under the new rules, a foreign national must apply for both a work and a residence permit at the Immigration Office, even though the work permit application is decided by the Labor Office. Once the work permit has been approved, the Immigration Office starts the residence permit procedure. The whole process takes approximately two and one-half to three months.
One of the major practical changes is that visa-exempt employees must now be present to apply for the permits and pick them up. (Note that foreign nationals who require a visa to enter can process at the Hungarian Consulate in their home country.) In the past, the work permit application could be processed first, before an employee entered Hungary, and the residence permit was processed after entry. The employee may not begin working until the Immigration Office issues the combined permit, now called a “residence permit,” which displays the name of the employer and workplace. If the employee changes jobs, he or she must apply to change the residence permit as well as the work permit.
BAL Analysis: Sponsoring employers should prepare for a longer process that requires more attention and the presence of visa-exempt employees. Additionally, employees will not be able to start work until both the work and residence applications are adjudicated and the single permit is issued.
This alert has been provided by the BAL Global Practice group and our network provider located in Hungary. For additional information, please contact GlobalVisaGroup@bal.com.