Will employment of guest workers in Hungary face further restrictions soon?
The Hungarian Ministry of National Economy has proposed stricter rules on employing guest workers in Hungary while encouraging local jobseekers through training and subsidies. In Tolna, Vietnamese guest workers have filled labour shortages, with employers praising their efficiency and reporting minimal extra costs compared to local hires.
New draft regulation
Portfolio reports that the Hungarian Ministry of National Economy has released a draft regulation concerning the employment of guest workers in Hungary. Under the proposed rules, foreign work permits will be denied if employers have been fined for labour violations or employing third-country nationals without permits within the past year. Applications will also be rejected if the employer is undergoing liquidation, or if they refuse to hire qualified Hungarian jobseekers without valid reasons. Additionally, companies involved in major investments must report the number of non-EU workers they employ each year, and cooperate with government offices to place Hungarian jobseekers.
Battling unemployment
The Hungarian government has introduced measures aimed at integrating a significant portion of the unemployed and inactive into the workforce, alongside guest workers in Hungary. Supported by EU funds, the initiative focuses on providing training and human services, particularly for those in public employment. The programme includes mobility housing and travel allowances for jobs located 10 to 60 kilometres from home, along with subsidies for labour market training costs, such as exam fees and childcare. Jobseekers in training will receive allowances to replace lost income and cover travel expenses. From January, firms hiring the long-term unemployed could receive subsidies up to 150% of the monthly minimum wage per employee.
Experts’ take on the new rule
With Hungary’s planned tightening of rules on employing guest workers, recruitment agencies have shared their perspectives on the impact. According to Magdolna Mihályi, managing director of Jobtain HR Services Ltd, authorities were always able to reject foreign work permit applications if companies have been fined for labour violations, but the new regulations would make this mandatory. This could significantly affect companies employing guest workers in Hungary.
Dávid Maier, from the Asian recruitment agency Terendo, explained that the new process would also account for previous fines when issuing permits, regardless of the worker’s nationality. Both experts agreed that while the changes are significant, they aim to prevent employers from bypassing local candidates with unjustified conditions. However, abuses are rare as agencies strive to fill roles quickly and efficiently.
Guest workers in Hungary
As Világgazdaság writes, in Tolna, Vietnamese guest workers in Hungary are praised for their hard work and efficiency. Around 50 workers from Vietnam are employed by companies like Interplus and Tolnatext, with most residing in the Hotel Thelena. After struggling for over a year to find reliable local workers for multi-shift roles, companies turned to foreign labour as their only option. Vietnamese workers, mostly aged 20-40, have been employed since April, following thorough screening. While language barriers were initially a challenge, interpreters and smartphone translators have helped overcome these issues. Employers report positive experiences with these dedicated and efficient workers, with minimal additional costs compared to local hires.
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Why are local hires “unreliable” and less “efficient”? What these employers need are slaves who do what they are told, are never sick, and will work for peanuts. If Hungarians are not willing to do these jobs the working conditions and pay must be dismal. Meanwhile the fat man in charge of Hungary is promoting fairy tales about how he is going to make industries pay Hungarians more for their labour. The rise of the use of guest workers who are willing to work for lower pay is diametrically opposed to the idea of promoting higher pay in industry.