
Hungary is implementing new regulations concerning the employment of foreign workers, as outlined in governmental decree 450/2024 (XII. 23.), effective from 01 January 2025.
The decree limits the entry of foreign workers from countries without formal readmission agreements with Hungary. These agreements facilitate the return of individuals who overstay their residence permits or are found without appropriate legal documentation in the EU. Currently, there are two such countries: Georgia and Armenia. Notably, the decree does not apply to employment and residence applications submitted before 01 January 2025, or to the extension of existing employment-related residence permits.
The Hungarian Chamber of Commerce and Industry expressed concerns regarding the potential impact of these changes on sectors heavily reliant on foreign labour. They are advocating to postpone implementation of the regulations for a year, in order to allow time for negotiating additional readmission agreements with key labour-supplying countries. Analysts warn that without such agreements the new regulations could exacerbate labour shortages, affecting Hungary's economic performance.
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