Hungary’s guest worker ban – What does the June 5 amendment mean for employers?
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Introduction
The employment of foreign workers has become one of the most frequently raised economic and employment policy issues in Hungary’s election campaign. The Tisza Party has already indicated in its election programme that, if it comes to power, it would introduce a “guest worker ban” effective as of 1 June 2026, with the aim of limiting the influx of workers from third countries and providing greater protection for the Hungarian labour market.
As a result, the Government adopted Government Decree No. 92/2026 (VI. 5.) amending Government Decree No. 450/2024 (XII. 23.) on the employment of guest workers in Hungary (“Amendment”), which entered into force on 6 June 2026 and introduced significant changes to the regulation of guest worker employment in Hungary.
The measure is often referred to in the press as a “guest worker stop”, but the actual content of the Amendment is more nuanced than that. Below, we summarize exactly what changes the legislator has made, who is affected by the Amendment, and what options remain for employers.
Who qualifies as a guest worker, and who is affected by the current amendment?
First of all, it is important to clarify who qualifies as a guest worker and exactly whom the Amendment affects. Under the Act on the Entry and Residence of Third-Country Nationals (“Immigration Act”), the term “guest worker” is a collective term denoting a specific category of persons. Accordingly, a third-country national is classified as a guest worker if they hold a specific type of permit (permit for seasonal employment, permit for the purpose of employment, permit for the purpose of implementing an investment project, or permit for the purpose of guest working) for the purpose of long-term residence and employment in Hungary.
In other words, the guest worker residence permit is a specific type of permit designated in the Immigration Act. This permit was intended specifically for the employment of third-country workers of certain nationalities by specific employers (preferential employer or certified temporary work agency).
It therefore follows from the above that the terms “guest worker” and “guest worker permit” refer to two entirely different approaches and concepts, which have understandably caused a great deal of confusion in recent times. However, it is important to note at this point that the Amendment does not affect guest workers, but rather exclusively the category of guest worker residence permits, and does not generally eliminate the possibility of employing third-country workers in Hungary.
Guest worker ban – What does the Amendment entail?
The practical effect of the Amendment is that, as of 6 June 2026, it will no longer be possible to apply for a new guest worker residence permit.
However, the amendment did not permanently repeal the provisions governing guest worker residence permits. The government implemented the ban through a technical solution: it currently does not designate any third countries whose citizens would be eligible to apply for a guest worker residence permit in Hungary.
The Amendment, therefore, does not constitute a comprehensive ban on the employment of foreign workers, but rather eliminates the applicability of a specific type of permit. As a result, temporary work agencies and employers that have primarily employed third-country workers under this arrangement will face significant restrictions when bringing in new workers.
Transitional provisions
The legislator has introduced detailed transitional provisions to ensure that employees already working in Hungary and pending administrative procedures are not adversely affected overnight.
Employees who, on 5 June 2026, already hold a valid guest worker residence permit may continue to:
reside and work in Hungary in accordance with the terms of their existing permit; and
apply for the extension of their permit or, in certain cases, for its reissuance under the previously applicable rules.
Similarly, applications submitted on or before 5 June 2026, for which the relevant administrative fee has also been paid, will benefit from more favourable transitional treatment. Applications for the issuance or extension of a guest worker residence permit in such cases must continue to be assessed under the rules that were in force prior to the entry into force of the Amendment.
In practice, this means that the Amendment primarily affects new applicants, while the majority of existing permit holders and pending cases may continue to be administered under the previous regulatory framework.
Outlook and Alternative Options
While the Amendment introduces a significant change to the Hungarian labour market, it does not entirely eliminate the possibility of employing third-country nationals in Hungary.
First, it is important to note that the current changes do not affect other types of residence permits. Where an employer continues to have a need for foreign labour, it is advisable to assess on a case-by-case basis whether another legal basis may be available for the employee concerned, such as a residence permit for employment purposes, a Hungarian Card, or an EU Blue Card.
Particular attention should be paid to the fact that the legislation does not expressly exclude the use of temporary agency work arrangements. Accordingly, it may still be possible, at least in principle, to employ third-country nationals under a residence permit for employment purposes within a labour leasing structure. However, the official interpretation and enforcement practice of the authorities in this respect are not yet known. Therefore, a separate legal assessment is recommended before implementing such arrangements.
It should also be borne in mind that the legislator has indicated that further amendments may follow. As a result, the regulatory framework may continue to evolve in the coming months, requiring employers to monitor developments closely.
At present, the most important practical recommendation for employers is to carefully manage the status of their existing foreign workforce in Hungary, ensure that any necessary permit extensions are submitted in a timely manner, and explore the alternative immigration routes that may remain available.
Our firm continues to monitor developments closely and remains at our clients’ disposal to assist with any questions regarding the employment of foreign nationals in Hungary.
Photo source: pexels.com, Ammy Singh
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