What are Hungary's fixed-term employment limits?
Hungary’s Labour Code caps fixed-term employment (határozott idejű munkaviszony) at five years in total. The cap counts extensions and any new fixed-term contract concluded within six months of the previous one ending, so a short break does not reset it.
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The term must be set by a calendar date or in another clear way, such as the end of a defined project. When it is not a calendar date, the employer must tell the employee the expected duration, and the end of the contract cannot depend on the will of one party alone.
Where employment needs an official permit, such as a work permit, the contract can last for the permit’s duration, and the total may exceed five years if the permit is renewed.
Renewals and probation
Extending a fixed-term contract, or concluding a new one within six months of the last, is only allowed if the employer has a legitimate interest, and it must not harm the employee’s legitimate interests. No new probationary period can be agreed for the same or a similar job, and for contracts of up to 12 months the probationary period must be proportionate to the contract’s length.
What it means for employers
Fixed-term contracts suit defined projects, cover for absent staff or seasonal peaks. Renewals that breach these rules leave the employer open to legal challenge, so the reason for each extension should be documented. Annual overtime limits also apply pro rata to fixed-term employees.
Fixed-term hires through an EOR
With TopSource as your Employer of Record in Hungary, we set the term, any renewal and the probationary period within these limits and record the reason for each extension.
Frequently asked questions
What is the maximum length of a fixed-term contract in Hungary?
Five years in total, including extensions and new fixed-term contracts concluded within six months of the previous one ending.
Can a fixed-term contract in Hungary be renewed?
Yes, if the employer has a legitimate interest and the renewal does not harm the employee’s legitimate interests. No new probationary period can be set for the same or a similar job.
Are there exceptions to the five-year limit?
Yes. Where employment requires an official permit, the contract can follow the permit’s duration and may exceed five years when the permit is renewed.
Related terms in Hungary
- Written Employment Information (Hungary)
- Simplified Employment (Hungary)
- Overtime Cap (Hungary)
- Telework and Home Office Rules (Hungary)
- Additional Leave (Hungary)
- Protected Periods and Dismissal Justification (Hungary)
- Termination by Mutual Agreement (Hungary)
- Non-Compete Agreement (Hungary)
- Works Council and Collective Agreements (Hungary)
- Guest Worker Permit and Single Permit (Hungary)
- Occupational Safety and Medical Aptitude Exam (Hungary)