As defined in the Act on the general rules for the commencement and pursuit of service activities, private employment placement activities constitute the totality of activities aimed at promoting the meeting of job seekers and employers for the purpose of establishing legal relationship aimed at employment, also including the mediation of Hungarian nationals outside Hungary, and of foreign nationals to Hungary. In the Standard Classification of Economic Activities (TEÁOR'08) it is included in sector 78 Employment activities, sub-sector 78.1 Activities of employment placement agencies and special branch 78.10 Activities of employment placement agencies.
Private employment placement activities may be carried out by those who meet the conditions described in detail below.
A pre-condition for the commencement and pursuit of private employment placement service activities is that the private employment placement agency or at least one of its employees has the professional qualifications and experience prescribed on a mandatory basis for carrying out such activities, as well as the deposited financial guarantee.
The amount of the financial guarantee prescribed on a mandatory basis for performing private employment placement service activities, provided that private employment placement activities are performed, in case mediation is directed towards
- Hungary, or the territory of all other member states of the European Economic Region is five hundred thousand forints,
- the territory of a state which is not a contracting party to the agreement on the European Economic Region, one million forints.
Private employment placement agencies must replace any financial guarantee funds used within thirty days of payment. This replacement of funds must be certified at the state employment agency by the last day of the prescribed time limit.
Private employment placement agencies are subject to annual data provision obligations in connection with their activities. On the basis of these, private employment placement agencies must prepare their data provision of the activities in the subject year by 31 January of the year following the subject year. Datasheet for data collection
Procedures related to the commencement and pursuit of service activities
In respect to private employment placement activities, on the basis of the designation by the Government, the duties of the authorities shall be fulfilled by the county (metropolitan) labour centre organizations (hereinafter: labour centres) operating as the administration agencies of the metropolitan and county government offices as state employment agencies. The labour centre in the territory where the customer’s registered office is located shall have jurisdiction.
Anybody who wishes to pursue private employment placement activities must report his intent for this to the competent state employment agency. The report on the commencement and pursuit of private employment placement activities can be submitted to the labour centre using the form designated for this purpose, orally in person or in writing. Pursuant to the current regulation, it is also possible to submit the report using an electronic form, but this cannot be done at present for technical reasons.
The service provider must attach the following documents to certify the satisfaction of the conditions included in its report:
- an extract from the corporate register or a final and operative court order for the inscription in a court register, a certificate of inscription in the register kept of individual entrepreneurs in the case of individual entrepreneurs, issued no earlier than three months previously,
- a certified copy of the diploma certifying the professional qualifications prescribed on a mandatory basis for performing the activities and certificates relating to the amount of experience in the special field defined in the case of individual qualifications,
- a deposit contract concluded with a financial institution for the establishment of the cash deposit secured by the reporting party and managed separately to certify fulfilment of the obligation related to the financial guarantee.
To certify payment of the procedural fee the service provider must attach, affixed to the document containing the report, a fee stamp certifying payment of the fee due for the procedure.
A general tariff procedural fee, i.e. HUF 3,000, must be paid by the reporting party for the reporting procedure.The fee must be paid by a fee stamp on the document containing the report when the report is submitted.
In the procedure connected to the report, the labour centre supervising the service shall enter the private employment placement agency in the register ex officio within fifteen days of the date following receipt of the report.
In case the registered office of the private employment placement agency is transferred to the area of jurisdiction of another labour centre, this must be reported to the labour centre with jurisdiction at the former registered office. The labour centre with jurisdiction at the new registered office shall enter the private employment placement agency in the register based on the documents transferred due to the change of jurisdiction.
After filing the report, service providers pursuing private employment placement activities must report any changes in the data included in the report to the labour centre immediately. The changes in the data of the report aimed at the commencement and pursuit of private employment placement activities can be submitted in writing or in person orally to the labour centre. It is currently not possible to report changes electronically for technical reasons. If the obligation of reporting related to the changes in the data of the register kept by the labour centre is fulfilled, no duty or fee must be paid.
Service providers performing private employment placement activities must report the termination of their service activities to the labour centre within eight days following termination. The labour centre shall delete the service provider from the register without delay after having received the report.
Pursuit of the activity as part of cross-border service
No sectoral rule is in force in connection with private employment placement activities on the basis of which those who lawfully pursue such activities in the member state of their residence (EU, EEA), should be obliged to have a separate licence or make a report in the case of rendering cross-border services, that is of occasional or temporary nature without residence, directed towards Hungary.
Cross-border service provision
If you wish to launch this service in the form of cross-border service provision, please click here to read the general conditions of cross-border service provision in Hungary.
Legal rules applicable to service activities and procedures
Sectoral legal rules primarily applicable to private employment placement activities and procedures:
- Act IV of 1991 on the fostering of employment and providing for the unemployed,
- Government Decree No. 118/2001 (30 June) on the inscription onto the register and the conditions for the pursuit of labour force hiring and private employment placement activities,
- Government Decree No. 323/2011 (28 December) on the sphere of responsibilities and competence of the National Labour Office and the administration agencies falling under its professional direction,
- Decree No. 3/1996 (05 April) of the Ministry of Labour on disciplinary penalties,
- Act CXL of 2004 on the general rules for public administrative official procedures and services,
- Act LXXVI of 2009 on the general rules for commencement and pursuit of service activities,
- Government Decree 217/2009. (X. 2.) on the designation of supervisory authorities of real estate enterprises.