Private Employment Agencies Convention, 1997 (No. 181) - Hungary (Ratification: 2003)

Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Article 3(2) of the Convention. Conditions governing the operation of private employment agencies. Application of the Convention in practice. The Government provides information on the legislative changes made during the reporting period, including Government Decree 226/2022 on the registration and activity of certified temporary work agencies. The Labour Code's provisions applying the Convention have also been modified in 2022 with the addition of a definition where, pursuant to section 214(1)(f) of the Labour Code, a certified temporary work agency shall mean the temporary work agency, as per section 214(1)(b) and section 215, which is authorised to employ third-country citizens based on the requirements set out in legislation. Workers from non-neighbouring third countries can be employed through certified temporary work agencies by way of a single accelerated hiring application procedure via the National Directorate-General for Aliens Policing (DGAP), the law enforcement body responsible for the entry and stay of foreign nationals in Hungary. The Government indicates that authorities must impose a fine if an employer performs employment agency activities without an official registration, or if a certified temporary work agency has failed to comply with the obligation to inform third-country nationals, or has violated the rules relating to the obligation to register. With regard to the application of the Convention in practice, the Committee notes from the report that there has been a steady increase in the number of private employment agencies over the last decade, with the exception of 2020 and 2021, years affected by the COVID-19 pandemic. There were 17.44 per cent more intermediary firms operating in 2022 when compared to 2015, with a total of 983 private employment agencies operating in Hungary on 31 December 2022. Available data show that the number of jobseekers registered by private employment agencies decreased from 792,700 in 2018 to 409,600 in 2021, and increased to 491,700 jobseekers in 2022. During the 2015-22 period, the number of successful placements peaked in 2016 with 71,927, falling to 29,696 in 2020, and increasing again in 2022 with 51,232. With regard to temporary work agencies, a total of 652 temporary work agencies were operating as at 31 December 2022; 446 of which were operating through their registered offices and 206 through branches. The number of temporary work agencies increased by 6.4 per cent as at 31 December 2022 when compared to the data as at 31 December 2021. An analysis of the data of earlier years shows that the number of temporary agency workers fluctuated in the range of 121,000 to 125,000 in 2015 and 2016, while in 2017 the number increased to nearly 160,000. The Government indicates that, in spite of the continued COVID-19 pandemic in 2021, the number of temporary agency workers increased to an all-time high, with 217,672 workers, followed by a decrease in 2022, with 177,655 workers. The Committee requests the Government to continue to provide updated information on the conditions governing the operation of private employment agencies and temporary work agencies. Noting that information on infringements and sanctions has not been provided, the Committee requests the Government to provide information on the manner in which the Convention is applied in practice, including extracts from inspection reports in relation to private employment agencies and temporary work agencies investigated, the number and nature of infringements reported and sanctions applied, including the number and amounts of fines imposed, as well as statistics on the number of workers covered by the measures giving effect to the Convention.

Article 7. Fees and costs. The Committee notes the Government’s indication that section 2(1) of Government Decree 118/2001 was, from 1 January 2019, supplemented with subparagraph k), which provides for a temporary work agency fee; that is, the amount of the consideration payable under a temporary work agency contract to the temporary work agency for the placement of the temporary agency worker, net of the value added tax. The rules on the exercise of private employment agency activities were also modified in 2019, by indicating that the customer hiring the temporary workforce shall pay at least the minimum temporary agency fee for the temporary work agency service provided under the temporary work agency contract. The Committee notes that the Labour Code continues to stipulate that the agreement for the assignment of temporary agency employees is to be considered invalid if it contains a clause to stipulate the payment of a fee by the employee to the temporary work agency for the assignment, or for entering into a relationship with the user enterprise. The Committee requests the Government to continue to provide information on the application of Article 7 in practice, and to indicate how it monitors and sanctions unauthorized fee-charging by private employment agencies or temporary work agencies.

Article 8. Adequate protection for and prevent abuses of migrant workers recruited or placed in its territory by private employment agencies. The Committee notes, that the 2019 concluding observations from the UN Committee on the Elimination of Racial Discrimination (CERD) regarding Hungary (CERD/C/HUN/CO/18-25) contain several important areas of concern and recommendations. CERD emphasized the need for Hungary to strengthen its legislative and policy framework to better protect against racial discrimination, ensuring alignment with the International Convention on the Elimination of All Forms of Racial Discrimination. It also considered that persistent discrimination against ethnic minorities, particularly the Roma community, remains a significant issue, and urged the Government to take effective measures to eliminate all forms of racial discrimination and promote equality. In addition, the rise in hate speech and hate crimes, especially against migrants but also against Roma and refugees, was also noted, with a call for stronger actions to prevent and punish such acts. Disparities in access to education and employment for ethnic minorities were further highlighted, with recommendations for policies to ensure equal opportunities. Additionally, the Committee underscored the need for better access to justice for victims of racial discrimination, including legal assistance and the ability to file complaints without fear of retaliation. In view of the above and in the absence of information in the Government’s report on the application of Article 8 of the Convention, the Committee requests the Government to provide details in its next report as regards the measures providing adequate protection for and prevent abuses of migrant workers recruited or placed in Hungary by private employment agencies. Please also indicate the applicable penalties, including whether the law provides that private employment agencies which engage in fraudulent practices and abuses are to be prohibited.

Articles 11 and 12. Protection for workers and responsibilities of private employment agencies and user enterprises. The Government indicates that Act XCIII of 1993 on Occupational Safety and other pieces of legislation on labour safety do not distinguish between temporary agency workers and an enterprise’s own employees. The Occupational Safety Act stipulates that, in the case of employment agency activities, the employer who employs the agency worker as a hirer is responsible for the implementation of the requirements for safe and healthy work. During the reporting period, occupational safety and health inspections were carried out with regard to over 40,000 workers employed in the context of employment agency activities, and a total number of 623 employers of temporary agency workers were inspected in 2018. The Committee notes the Government's indication that inspections found that employers had risk assessment functions in place, but in some cases a separate risk assessment was not carried out for the hired workers. The overwhelming majority of temporary employees were provided occupational health and safety training by the employers of temporary agency workers. The Committee further notes from the report that the organisation of the occupational health and safety education faced complications in several places, given that the training was carried out by an external occupational health and safety specialist, and seeing that the temporary agency workers appeared confused at the user enterprise as they were needed from time to time. The Committee requests the Government to continue to provide updated information on the measures taken or envisaged to ensure adequate protection for workers employed by private employment agencies and user enterprises in accordance with Articles 11 and 12, and more specifically with respect to occupational safety and health.

Article 13. Cooperation between the public employment service and private employment agencies. The Government’s report refers to the rules on employment agency activities for public employment, pursuant to Government Decree 118/2001, and informs that the latter lapsed in January 2020. The Committee recalls that the Convention requires that member States formulate, establish and periodically review the conditions to promote cooperation between the public employment service and private employment agencies. It also requests the Government to provide information on the consultations held with the social partners in this regard and on the impact of the measures taken to promote and enhance cooperation.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Article 3(2) of the Convention. Conditions governing the operation of private employment agencies. Application of the Convention in practice. The Government provides in its report comprehensive information on the legislative and regulatory changes pertaining to temporary placement agencies and private employment agencies, as well as court decisions made during the reporting period. In this regard, the Government indicates that the new Labour Code, which entered into force on 1 July 2012, has made the labour relationship between the temporary placement agency and the user enterprise more simple and transparent. Moreover, modifications were made to Government Decree No. 118/2001 regarding temporary placement and private employment agencies, by adding provisions on the temporary placement of employment in public employment. In reply to the Committee’s previous comments concerning the replacement of the licensing system, the Government indicates that notification replaced the licensing system. Pursuant to Government Decree No. 118/2001, private employment agencies do not need to obtain a licence from a government office before commencing their activities, but they must satisfy certain requirements of the Decree, such as depositing financial security, which is then certified in the notification. The competent government office conducts regulatory inspections and may ban a private employment agency from the continuation of its activities and, simultaneously, deletes it from its records when it does not satisfy the requirements of registration. With regard to the application of the Convention in practice, the Committee notes from the report that, as of 31 December 2013, there were 733 private employment agencies operating in Hungary and 1,016 temporary placement agencies were operational. Private employment agencies successfully placed 24,800 jobseekers in employment in 2013 (a 15.3 per cent decrease when compared to 2012) and 120,704 people accessed employment through temporary placement agencies (18.9 per cent higher than the previous year). The Committee requests the Government to provide information on the impact of the legislative and regulatory changes on the operation of private employment agencies. It also requests the Government to continue to provide information on the manner in which the Convention is applied in practice, including extracts from inspection reports in relation to private employment agencies investigated, the number and nature of infringements reported and sanctions applied, as well as statistics on the number of workers covered by the measures giving effect to the Convention.

Articles 11 and 12. Protection for workers and responsibilities of private employment agencies and user enterprises. The Government indicates that it is of the opinion that the right to freedom of association and the right to bargain collectively are provided to temporarily placed workers in view of the employment with the temporary placement agency. The Committee requests the Government to continue to provide information on the impact of the measures taken to ensure adequate protection for workers employed by private employment agencies and user enterprises in accordance with Articles 11 and 12.

Article 13. Cooperation between the public employment service and private employment agencies. The Government indicates that the public employment service and private employment agencies cooperate with each other during their activities. The Committee notes from the report that private employment agencies must supply information to the government offices on a yearly basis, in accordance with the provisions of Government Decree No. 118/2001, effective from 1 April 2015. The means of cooperation between the public and private employment services include: (a) regular professional contact; (b) exchange of information about the labour market; (c) exchange of data regarding vacancies that can be advertised and are available for placement; (d) joint training opportunities offered to employees; and (e) agreements on the improvement of the labour market situation. The Committee requests the Government to continue to provide information on the manner in which efficient cooperation between the public employment service and private employment agencies is promoted and reviewed periodically.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes the Government’s report, unanimously adopted in August 2010 by the National ILO Council, including complete information on the matters raised in the 2006 direct request. The Government reports that legislative amendments which affect private employment agencies replaced the earlier licensing system with simple reporting. Thus, to pursue private employment agency activities, it is sufficient to report the relevant intention to the competent labour centre and the activities can be started simultaneously. The Committee also notes amendments to Act No. CXXVI of 2009 on various labour acts which provides that the Government can prescribe, in a decree, the amount of financial security in the case of job placement in Hungary. Government Decree No. 284/2009 specifies the amount of financial security in the case of private employment placement and hiring-out of workers (2,000,000 Hungarian forints (HUF)), private employment placement in the European Economic Area (EEA), including Hungary (HUF500,000), and placement outside the EEA (HUF1 million). With regard to migrant workers hired by private employment agencies, the Government indicates that they receive the same protection in their employment relationship as any other employee, as the Labour Code provides the requirement of equal treatment with regard to employment matters. Based on data received from labour centres, the Government reports that, on 31 December 2008, 891 private employment agencies and 948 temporary employment companies were registered with the public employment service. About 45 per cent of these agencies and companies were active in the central Hungarian region. In 2008, a total of 1,250,752 jobseekers asked for help from private employment agencies, and 31,309 successful placements were made in the same year. The Committee notes that the labour centres made 14 resolutions against private employment agencies and one resolution against a temporary employment agency during the reporting period, copies of which were included with the Government’s report, in connection with the existence of the conditions of, and the performance of, private employment placement and labour hiring-out activities. The Committee asks the Government to provide further information in its next report on the replacement of the licensing system with a simple reporting system and, following this replacement, how compliance with the requirements of the Convention will be ensured. It also invites the Government to continue providing information on the manner in which the Convention is applied in practice, including reports by the labour centres on private employment agencies investigated, infringements of the provisions of the Convention, the sanctions applied, as well as statistics on the number of workers registered with private employment agencies (Part V of the report form).

Articles 11 and 12. Protection for workers and responsibilities of private employment agencies and user enterprises. The Government reports that employees mediated by private employment agencies receive the same protection as any other employee. The Government further indicates that the legislation provides the opportunity of collective bargaining to hired-out employees with temporary employment agencies. However, bargaining is not of full scope due to the limited power of the employment agency over the user enterprise. Given the particularities of working arrangements in which employees work for a user enterprise that assigns and supervises the execution of the work and the uncertainty as to responsibility, it is necessary for member States to address these particularities through measures that ensure that in each case effective responsibility is determined (see paragraph 313 of the 2010 General Survey concerning employment instruments). The Committee requests the Government to provide information in its next report on the measures taken to ensure adequate protection for workers employed by private employment agencies and user enterprises in relation to collective bargaining.

Article 13. Cooperation between the public and private employment services. The Government indicates that the public employment service and private employment agencies have started to elaborate the contents of cooperation and conclude relevant agreements in order to develop information systems to better understand the labour market. The Government also reports on the manner in which temporary employment companies and private employment agencies communicate data to the competent labour centres where they are registered. The information gathered is publicly available and the summary of the activities can be accessed online. The Committee invites the Government to report on the manner in which it will enable efficient cooperation between the public and private employment services so as to facilitate the operation of the labour market.

Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its 2006 direct request, which read as follows:

The Committee notes the Government’s first report on the application of the Convention which was received in November 2005. It notes the provisions of the Labour Code and of Government Decree No. 118/2001 of 30 July 2001 regarding the regulation of private employment agencies. It would appreciate receiving in the Government’s next report further information on the manner in which the Convention is applied in practice, including extracts of labour inspection reports on private employment agencies investigated, infringements of the provisions of the Convention, the sanctions applied, as well as statistics on the number of workers registered with private employment agencies (Part V of the report form). Please also supply extracts from reports based on the data provided by private employment agencies including information that has been effectively transmitted to the public employment centres, the intervals at which such information is supplied and the means used to ensure that the information concerning the activities of private employment agencies is made publicly available (Article 13(3) and (4) of the Convention). The Committee also requests the Government to provide information on the bilateral agreements concluded to prevent abuses in relation to migrant workers recruited or placed in employment by private employment agencies (Article 8(2)).

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s first report on the application of the Convention which was received in November 2005. It notes the provisions of the Labour Code and of Government Decree No. 118/2001 of 30 July 2001 regarding the regulation of private employment agencies. It would appreciate receiving in the Government’s next report further information on the manner in which the Convention is applied in practice, including extracts of labour inspection reports on private employment agencies investigated, infringements of the provisions of the Convention, the sanctions applied, as well as statistics on the number of workers registered with private employment agencies (Part V of the report form). Please also supply extracts from reports based on the data provided by private employment agencies including information that has been effectively transmitted to the public employment centres, the intervals at which such information is supplied and the means used to ensure that the information concerning the activities of private employment agencies is made publicly available (Article 13, paragraphs 3 and 4, of the Convention). The Committee also requests the Government to provide information on the bilateral agreements concluded to prevent abuses in relation to migrant workers recruited or placed in employment by private employment agencies (Article 8, paragraph 2).