Cross-border Posting of Workers through a Temporary Work Agency – Legal Framework Applicable to Hungarian Companies Operating in Romania
In the context of an increasingly integrated European labour market, cross-border provision of services and workforce mobility have become essential tools for business flexibility. One of the legal avenues available to companies is the posting of workers through temporary work agencies.
This article outlines the legal framework applicable when a company established in Hungary, acting as a temporary work agency, posts employees to Romania to perform services in favour of a user company established in Romania.
📌 1. Applicable Legal Framework
In Romania, the rules governing the posting of workers are laid down by:
Law no. 16/2017 on the posting of workers in the framework of the provision of transnational services;
Government Decision no. 1256/2011 on the posting of workers;
The Romanian Labour Code (in particular, Articles 88 and following, on temporary agency work).
According to Article 3(a) in conjunction with Article 5(c) of Law no. 16/2017, the law applies to situations where companies established in another EU Member State (in this case, Hungary) post workers to Romania through a temporary work agency.
📌 2. Key Definitions
Temporary work agency – the Hungarian company that hires the employee and makes them available to another enterprise.
User enterprise – the Romanian company that benefits from the work performed.
📌 3. Workers’ Rights During the Posting
According to Article 6 of Law no. 16/2017, posted workers are entitled, regardless of the law applicable to their employment contract, to the minimum working conditions set by Romanian legislation, including:
- maximum working time and minimum rest periods;
- minimum paid annual leave;
- the minimum wage applicable in Romania, including overtime pay;
- health and safety at work;
- conditions applicable to temporary agency workers;
- equal treatment and anti-discrimination provisions.
📌 4. Posting Conditions and Duration
The posted worker must be legally employed by the Hungarian agency, which must be authorised under Hungarian law.
The maximum duration of a temporary posting is 24 months, extendable to 36 months in total.
The employee must perform the work in Romania, under the authority of the user company.
📌 5. Required Content of the Assignment Contract
Under Romanian law, the contract between the agency and the Romanian user must include:
- duration of the assignment;
- job description, required qualifications, place and schedule of work;
- specific working conditions;
- safety and protective equipment;
- facilities and benefits for the temporary worker;
- the agency’s fee and the worker’s wage;
- conditions under which the user may refuse a temporary worker.
Any clause prohibiting the user from hiring the temporary worker after the assignment ends is null and void.
📌 6. Additional Rights of Temporary Workers
Temporary workers must receive a salary equal to or higher than that paid to comparable employees of the user.
If no such employee exists, the wage shall be set according to the applicable collective labour agreement.
The salary is paid by the Hungarian agency.
Any posting-specific allowance is considered part of the minimum wage unless it is clearly a reimbursement of costs (accommodation, meals, transport).
📌 7. Obligations of the Romanian User Company
Must provide personal protective equipment (unless otherwise agreed in the contract).
Must ensure equal access to services and facilities available to its own employees.
Responsible for ensuring safe and legal working conditions.
Must notify the agency immediately in the event of a work-related accident or occupational illness.
📌 8. Obligations of the Hungarian Temporary Work Agency
a) Administrative Requirements:
Must submit a posting declaration in Romanian to the relevant Labour Inspectorate, no later than the day before the start of the assignment.
Must maintain and make available the following documents (with Romanian translation), in paper or electronic form:
- employment contract or equivalent document;
- proof of wage and payment;
- working time records.
b) Other Obligations:
Provide the documents upon request within 20 working days, including after the posting ends;
Keep records for 3 years after the end of the posting;
Appoint a liaison person in Romania for communication with authorities.
📌 9. Social Contributions and Taxation
All wage-related contributions (social security, health insurance, income tax) must be paid in Hungary, according to Hungarian tax law.
If Hungarian law provides more favourable working conditions, those will take precedence over Romanian rules.
✅ Conclusion
Posting workers through a temporary work agency is a lawful and increasingly used mechanism for providing services across EU borders. However, it requires strict compliance with national and EU legal requirements, particularly in employment, tax, and social security matters.
The team at Kovacs & Associates provides comprehensive legal assistance to companies involved in cross-border posting — including both Hungarian employment agencies and Romanian user enterprises.
📩 Contact us for tailored legal advice, documentation assistance, and full representation before authorities.
