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Labor leasing

Employee leasing is when an employer would like to reduce its duty and its responsibility by applying outside employee.The employer signs a contract not with the employee but the company which is providing the leased employee. By doing this, the employee lessor company is making the sign in and sign out process, the payroll calculation and all the administration. The rental company pays the salary for the employees after the confirmed and proven workhours. The lessor also takes care about the social charges such as healthcare insurance and taxes. The result of this is a bill to the borrowing company which contains all the costs of this process and it is not a labour cost in the outgoings.

Employee leasing is suggested when:

  • Stagnating number of employes
  • High rate of rotation
  • Small size organisation
  • Reduce the labour cost and employer's duty

Employer's administrative duties

  • Labour contract
  • Payroll check by each worker
  • Social security charges
  • Annual social security report
  • Private health insurance
  • Pension report
  • Manage holiday
  • Job certificates
  • Treating workplace accidents
  • Litigation cases
  • Up-to-date in Labour law
  • Statistic reports

When you sign a mandating contract with us you pay only a certain amount of money according to the bill which won't be a labour cost on your side. 
Our Company help you to reduce your labour responsibilities and tasks!

When can you use the employee leasing service?

  • Replacing your ill employee immediately
  • When your employee is on training
  • Immediately jobs or unexpected order
  • You need a new employee but you haven't decided yet if it is a permanent associate or you don't have the permission to decide
  • Temporary workforce need such as temporary project and programs
  • Because of your Company profile you need more employee periodically (for instance: tourism, Christmas)
  • Growing administration tasks (annual report, new computer system, launch ISO)

What advantages can we offer to you?

You can save money and time because:

  • We find the employees
  • We find out if the best candidates fit into your position.
  • We arrange an interview when you can choose from the fittest candidates
  • We takeover all the empolyer duties
  • In case of illness we provide a new person
  • During the probation period if you are not satisfied with the employee we provide another one

It is reducing the administration tasks of your company since we arrange:

  • Employees entry and redundancy
  • labour contract
  • employer and employee tax payment
  • private pention payment
  • dataproviding to the authorities
  • employees administrative problems

To provide the best service to our employees the most important key is reliability and motivation:

  • we treat the job seekers who contact us as our customers
  • we find out it their motivation for the position is only temporary or they have real intend to accept the job
  • continously we get feedback about their satisfaction
  • we provide competitive salary
  • we provide all the legal guarantees such as pension, health insurance, legal background

The unique solution: employee leasing and exchange:

If you have a permanent workforce need but you haven't decided to apply a permanent employee and you would like to avoid the risk of probation (disability of employee, quit the job) we have the unique service for you:

  • we find the employee according to your expectation
  • with employee leasing you have the chance to estimate the eligilibity of the employee
  • if the employee and employer can work together successfully you can apply by your own employee

Background: definitions and country specific information

With many private labour market agencies extending their services as early as at the beginning of economic and political transition period of Hungary, temporary work agencies began to proliferate in the 1990s, but before the amendment of the Labour Code in 2001 legal regulations lagged behind company practice. This law added a new Title, which provides the essential definitions as part of the regulatory framework. This Title of the Labour Code reads in Hungarian Munkaerőkölcsönzés - Employee Leasing in literal translation. Thus the law appears to focus on the commercial relationship between the agency and the user enterprise while fails to provide an explicit definition of the agency worker. In this language the definitions of Article 193/C are as follows:

  • employee lease: an activity in the frames of which lessor leases the employee, who is in employment relationship with the lessor for the specific purpose of lease, to lessee to perform work for compensation (hereinafter: lease);
  • lessor: the employer who transfers the employee, who is in employment relationship with lessor for the specific purpose of lease, to lessee to perform work, and shares employer rights and obligations with lessee (hereinafter: lessor);
  • lessee: the employer who employs the employee transferred in the frames of the lease contract, and shares the rights and obligations of the employer with lessor.

As far as the legal status of the agency worker is concerned, the law requires a special sort of employment contract between the agency and the worker. Although the agency work is performed under the supervision of the user firm, the employment relationship is primarily established with the agency.

Main provisions of the law

The 2001 legislation is based on the so-called triangle principle, i.e. the temporary work agency signs a contract with the employee on the basis of a special sort of employment relationship (it must be indicated in the contract that its purpose is to fulfil temporary agency assignments), while there is a commercial contract between the agency and the user enterprise on the assignment. During the period of this special employment relationship, the employer's rights and duties are shared between the agency and the user company. The employer's main functions, however, are fulfilled by the agency, such as hiring, termination of the employment relationship, paying the wage, informing the employee about working conditions and reporting to different authorities. At the same time, the user enterprise's regulations apply to work schedules (including working time, rest time and paid holidays) and to instructions on how the actual work is to be performed.

Temporary agency workers may be employed on both open-ended and fixed-term contracts, but a probation period is not allowed in either case. Furthermore, an earlier normal employment relationship may not be converted into a temporary employment contract. A few other stipulations of the law provide agency workers some security: the user enterprise cannot order them to work for another employer; rights of employees granted by the Labour Code or other legal regulations may not be restricted or denied; agreements not permitting the agency worker to enter into an employment contract with the user enterprise when the temporary employment contract expires – or requiring the worker to pay a certain fee to do so – must be considered null and void. At the same time, the law provides the employer with greater flexibility by suspending the stipulations of the Labour Code on termination of employment, successive fixed-term contracts, further training and some other issues. The statutory notice period for an open-ended temporary agency employment contract is 15 or 30 days depending on the length of service, while that of a fixed-term contract lasts up to the date of expiry.

As to taxes, agencies and their employees pay the same mandatory social security contributions as other employers/workers in ordinary employment contract