|GH 2017 Hungary|
The employment relationship is more burdensome for companies, both administratively and financially (for example: tax and social contributions), than a civil law contract (i.e. an independent contractor). Employers may therefore be tempted to disguise an employment relationship as an independent contractor relationship; a move which may result in severe financial penalties from the courts.
Parties are free to choose which type of contract they want to engage in, and its content. The parties may depart from the law in respect of their rights and obligations with mutual consent, unless specifically prohibited by the law. If the content of the contract, or the practice of the parties, includes at least one primary factor typical for employment, then the competent authority and the courts are entitled to classify the allegedly civil law contract as an employment contract with all of its legal and financial consequences.