Residence permit for the purpose of employment

Despite of the obvious interpretation, a residence permit for the purpose of employment shall not only be applied to in case of a traditional employment relationship.

Definition

There are two cases when the issuance of this permit is reasonable as specified in point (2) of Section 20 of the Act II of 2007:

“A residence permit for the purpose of employment may be issued to third-country nationals:

a) whose purpose of residence is to perform work for or under the direction and/or supervision of others, for remuneration, under contract for employment relationship; or

 b) who performs work as the owner or executive officer of a for-profit business association, cooperative or some other legal entity, in addition to the work actually performed in that capacity.”

This means that an application for residence permit for the purpose of employment is not only required in case of a subordinate relationship, but also in some other cases regarding company owners or executive officers.

Single application procedure

Applications are reviewed by the competent authority within the framework of a single application procedure. The procedure does not apply for every type of residence permit. The issued residence permit allows the third-country national to enter into a contract with an employer in Hungary and reside legally in the territory of the country based on a single application submitted to the authorities.

General conditions of issuing the residence permit:

The applicant shall be

  1. in possession of a valid travel document;
  2. necessary permit for return or continued travel;
  3. justify the purpose of entry and stay;
  4. have accommodation;
  5. sufficient means of subsistence and financial resources to cover accommodation costs and leaving the country;
  6. comprehensive health insurance;
  7. and the applicant cannot be subject to expulsion or exclusion and shall not be considered a threat affecting public policy, public security, national security, or public health of Hungary
  8. and cannot be a subject of SIS alert

The third-country national holding a residence permit is not required to certify the requirements 2-6. again at the time of entry since during the application procedure these has been examined and holding the residence permit or the visa for the purpose of collecting the residence permit is proof of fulfilment of those conditions.

Verification of the purpose of residence

In case of employment relationship, the application should be accompanied by an agreement, contract or other document verifying the employment relationship or express the intent to enter into an employment relationship. Therefore, a prior agreement concluded with a view to entering into an employment relationship is sufficient.

Company owners or executive officers, who fall under this category may be requested to present the same documents as in case of application to residence permit for the pursuit of gainful activity.

For the list of sufficient documents please see our article: http://drdobos.eu/2019/05/01/residence-permit-to-hungary-through-gainful-activity-residence-permit-for-the-pursuit-of-gainful-activity/

Validity and extension

The maximum period of validity of this type of residence permit depends on a specialists authority’s assessment. The granted validity period may not exceed the duration indicated in the assessment and the validity of the travel document shall also be taken in consideration.

 Distinction from residence permits of similar nature

In case the third-country national wishes to perform work as executive officer of a for-profit business association, cooperative or some other legal entity in Hungary an application for residence permit for the purpose of gainful activity has to be submitted, but in case the scope of activities exceed the work as executive officer and the applicant plans to perform actual work (in any traditional job or position) in that company a residence permit for the purpose of employment becomes necessary.

If the work to be performed by the third-country national is is typically linked to a period or date of the year as per activities performed in agricultural sectors of employment (crop production, forestry, farming and fishing sectors, an application for residence permit for the purpose of seasonal employment has to be submitted, the validity period of which is maximum six months per year.

If you are interested in different residence permit categories related to working in Hungary, find our comprehensive article: Third country nationals on the Hungarian labor market.

Do you have any question regarding employment in Hungary as a third-country national? Do not hesitate to contact us!

Disclaimer: We provide our services in accordance with the Hungarian and European laws in effect. We assist our clients only in lawful entry and residency in Hungary and we do not support illegal immigration.

dr. Dobos István attorney at law (ügyvéd; Budapest)/ dr. Kőhidi Ákos attorney at law (ügyvéd; Győr) / Laczó Barbara

E: office@doboskohidi.eu

Phone / Whatsapp: +36303088151 / + 36305866162

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