Overview
REMOTE PEOPLE offers unlimited (permanent) employment agreements as the standard employment arrangement in Hungary. Fixed-term employment agreements are not recommended and are available only in exceptional circumstances.
1. Unlimited (Permanent) Employment Agreement
Standard offering at REMOTE PEOPLE
Duration: Unlimited agreements are the standard offer at REMOTE PEOPLE in Hungary. They provide stability and long-term employment without a fixed end date.
Applicability: Available for both full-time and part-time positions.
Why is Unlimited the better fit?
Lower termination cost: Severance is only due after 3 years of employment There is no severance during the first 3 years.(1 month after 3 years, 2 months after 5 years, 3 months after 10 years).
Predictable exit: Termination follows the statutory notice periods, which depend on length of service.
Part-time employment
Part-time employment is available under an unlimited agreement, with the following considerations:
Remuneration: Calculated proportionately to the hours worked.
Social Security Contributions: Based on the actual remuneration received.
2. Fixed-Term Employment Agreement
Not recommended! Available only in exceptional cases.
REMOTE PEOPLE does not recommend fixed-term employment agreements as the standard arrangement in Hungary. Such agreements may be considered in exceptional circumstances and are subject to internal approval.
Why are fixed-term agreements not recommended?
Costly early termination: If a fixed-term agreement is ended early by the employer, the employee is entitled to all outstanding wages and benefits up to the originally agreed end date, capped at 12 months’ salary. This is often far more expensive than the notice and severance under an unlimited agreement.
Limited duration: A fixed-term agreement, including all renewals, cannot exceed 5 years.
Renewals need a justification: Each renewal requires an objective reason, such as a delay in a specific project. A fixed-term agreement cannot simply be renewed to continue the employment.
No real saving: A fixed-term agreement does not reduce employer obligations such as notice, registration or social security. The main effect is added financial risk if the relationship ends early.
Duration and renewal
Maximum Duration: 5 years in total, including renewals.
Renewals: There is no limit on the number of renewals, but each must have an objective reason, and the total duration cannot exceed 5 years.
Features for Part-Time Employees
Remuneration: Calculated proportionately to the hours worked.
Social Security Contributions: Based on the actual remuneration received.
Good to know
Probation: Up to 3 months in total (including any extension). This applies to both agreement types.
Registration: The employee must be registered with the authorities at least 1 day before the start date, so agreements cannot be backdated.
Language: Agreements are written and bilingual.
Currency: Salaries are paid in HUF. EUR is possible only for senior positions.