Required Employment Documents When Ending a Work Relationship in Hungary (Effective from 2024)

When an employment or other work-related legal relationship comes to an end, Hungarian employers are legally required to provide certain documents to their departing employees or contractors. As of January 1, 2024, updated rules are in place to streamline this process. Here’s what employers need to know to stay compliant.

Deadline for Providing Final Payments and Documents

Under the Hungarian Labour Code (Mt.), final wages and all other employment-related entitlements must be paid no later than the fifth working day following the end of employment. If the termination involves a notice period, the employer must ensure all dues and required documents are provided by the last working day.

The New Unified Certificate

One of the key changes introduced in 2024 is the replacement of various employment-related certificates with a single unified document, known as the “Foglalkoztatási igazolás” (Employment Certificate). This certificate consolidates previous information into one standardized format, making it easier for both employers and employees to manage end-of-employment paperwork. The content of this certificate is defined by legislation (Flt. 36/A § (2)).

Notably, the previous requirement to issue separate documentation for paternity or parental leave has been repealed in favor of this unified certificate.

Other Regulations and Overlaps

Some laws, such as those outlined in the Social Security Act (Tbj.) and the Enforcement Act (Vht.), remain unchanged but are now partially redundant, as they contain similar data already included in the unified certificate. Employers should still be mindful of these regulations, although issuing the unified certificate alone typically fulfills the legal obligations.

Additionally, employers who serve as their own payers must still complete and return the “Insurance and Healthcare Benefits Record” form to the employee at the end of their employment. However, as the data overlaps significantly with the new unified certificate, this may no longer be necessary in practice.

Exceptions: Simplified Employment and Foster Care Roles

The new certificate is not required in simplified employment scenarios (e.g., casual or seasonal workers). In the case of foster parent roles, the document must only be issued if the individual applied for unemployment benefits during their service period.

What About Commission-Based or Mandate Contracts?

In Hungary, individuals working under a mandate contract (megbízási jogviszony) do not qualify for paid vacation time, as this form of work is governed by the Civil Code rather than the Labour Code.

However, employers must still issue certain documents if the mandate contract establishes a social insurance obligation. This includes an annual income certificate detailing the duration of insurance coverage, total contributions deducted, and any applied family contribution discounts. If the mandate ends mid-year, the certificate must be issued without delay.

Key Takeaway for Employers

If you’re ending any form of employment or contract work, ensure you provide all relevant final payments and legal documentation within five working days. For employees, this means receiving a new, streamlined employment certificate that covers everything previously documented in multiple separate forms.

Remaining compliant with these updated requirements not only avoids legal complications but also strengthens your professional reputation as a responsible employer.

Need help navigating employment rules in Hungary?

Passway helps you stay compliant, avoid legal headaches, and focus on growing your business.
Get in touch with us today!