Introduction
Perhaps no one will think it is an exaggeration to say that the “general” residence permit for work purposes under the Harmtv. and the same under the Btátv. are the most applied for by foreigners when it comes to working in Hungary. This is true even though a number of permits for other purposes have been added to the range of employment-related possibilities over time.
In view of the practical importance of this type of permit, this article will look at the rights and obligations attached to the said permit under the Btátv., in comparison with its predecessor under the Harmtv., to help you understand what has changed or remained the same.
What remains the same
What will surely be familiar to anyone who has at least once dealt with such a residence permit application is the underlying prerequisite: the employment objective. Such a permit is primarily available to those who wish to spend a longer period in Hungary in order to carry out actual work for or under the direction of another person, for consideration, on the basis of an employment relationship. The Btátv. has not changed this, so the contractual relationship for this purpose must still be proven when applying (e.g. most often by a preliminary agreement with the future employer).
It may seem novel, but it is not really, that the Government can define occupations in which employment is prohibited. A similar protectionist provision has been part of the terms and conditions of employment of third-country nationals in the country for almost 30 years, although it was not so ‘in the spotlight’ before.
The same is true for the limitation of the number of foreigners employed in Hungary, as it has been a relatively long-standing option to maximize the number of residence permits that can be issued. The magic number for 2024 is 65,000, i.e. this is the maximum number of residence permits for employment purposes and guest worker residence permits that can be issued under the single application procedure this year.
What has changed
Guest worker instead of employment purposes
The Btátv. has completely overhauled the regulatory system. Among the redefinitions, the category of guest worker was born. This generic term, however, refers to a group, as it covers and encompasses not one but four types of residence permit. These are: seasonal guest worker, guest worker employed for the purpose of carrying out a project, residence permit for employment purposes and guest worker residence permit. The old-new type therefore falls into this category.
Why do you want to come?
Another noteworthy difference is the other purpose for which the authorisation is granted.
In the past, an employed person could also redeem this residence permit if, as an owner or executive officer of a company, cooperative or other legal person established for gainful purposes, actually intended to carry out work outside the scope of this activity. However, since under the Harmtv. a managing director could only work in Hungary under one legal title (i.e. one residence permit), the one for employment purposes emerged as the winner in the “competition” between two types of permits – which would otherwise be applicable to him/her – and it was worth obtaining it. In comparison, the Btátv. now places residence and activity in Hungary for such purposes under a completely different immigration category.
The rule that a residence permit for employment purposes can be obtained even if the employment relationship is not with the Hungarian employer, but the foreign worker is only on secondment in the Hungarian company is new.
What about the duration?
The maximum period of validity remains two years. Under the Btátv., however, the related provisions are also slightly different. In contrast to the previous application procedure, where employees could in practice have their residence permit extended as often as their (work) contract with their employer was extended, the possibility of continuous extension without limitation has been abolished under the new system. After three years from the date of the first issue, the worker concerned must apply for a new residence permit instead of an extension.
Who else can come?
Under the Harmtv., a family member of a foreign national holding or applying for a residence permit for employment purposes could apply for approval of residence in Hungary for the purpose of family reunification on the basis of the residence permit of the former. This meant that the person with a relatively close family relationship could, if the other conditions of the application were met, live here with their working relative even without an employment relationship.
As part of the conceptual revision of the Btátv., this possibility was not left untouched. Residence for the purpose of family reunification may still be granted to a very limited number of persons who previously held such a permit, but the new code has removed this possibility for family members of holders of the new type of work permit. This may, in practical terms, lead to a significant change in the willingness to work, given the competition for certain guest workers with close family ties. However, no concrete negative effects that can be translated into figures can be reported at this stage.
Leaving the country as an employer’s obligation
There was probably no doubt in anyone’s mind before that a temporary worker could only remain in the country after the end of their temporary employment if there was a valid reason and an accompanying authorisation. If there was none, they had to leave. Violation of this obligation was also sanctioned by the Harmtv.
However, the Btátv. has also taken this to a new level, and to make the employer feel the weight of responsibility (even more), a new type of fine has been introduced, with a clearly visible amount. In this way, companies have an even greater interest in ensuring that all their foreign workers are, if not sent home, then at least sent outside the country within a short period of time. There is currently no well-developed official practice on how companies can best meet these obligations in a way that protects them, but if you are interested in our advice and suggestions in this regard, please contact us.
Summary
It is important to note that this summary is intended to provide a comprehensive overview of the overlaps and differences between the referred residence permits, but not all relevant parts have been covered and, due to its nature and general purpose, this article does not constitute legal advice. If you have any questions, either about the above, or about background not covered here, or if you just want a more comprehensive summary, we encourage you to contact us.
Author: dr. Eszter Bohati, lawyer – CLVPartners
