Restrictions On Use Of Temporary Staff Agency Workers

The use of temporary staff agencies and agency workers has increased steadily in Hungary over the past two decades. The legal relationship in this context is usually referred to as 'workforce lending', as it is understood that the agency's assignment of workers to the undertaking that uses them constitutes lending. Although the basic concept of workforce lending and detailed regulations on this tripartite legal relationship were officially adopted in 2001 as part of the harmonisation of Hungarian law with EU law, the concept had actually been in use much earlier.

The use of temporary agency workers is particularly popular among employers whose workforce needs fluctuate or which require employees for short-term or seasonal jobs. There are few restrictions or prohibitions on the employment of agency workers in Hungary. As a general rule, employers may employ an unlimited number of agency workers for any job position, for a period of up to five years. However, the law