a. How to Properly Document the Relationship
In Hungarian law, the mandatory provisions of a civil law contract are not regulated. The law does not require that the parties conclude the agreement in written form. However, to avoid any misunderstanding in case of disputes, it is highly recommended to ensure the agreement is in writing. Parties must avoid including provisions in a civil law contract that are only applicable for employment relationships, for example:
• fixed monthly payments;
• instructions on daily working hours;
• instructions on how to work;
• detailed scope of the activity;
• annual holiday days;
• hierarchy between the parties; and/or
• exact workplace.
b. Day-to-Day Management of the Relationship
As the court (in case of a dispute about the nature of the relationship) routinely examines the parties’ relationship which was realised in practice, if the principal wants to avoid the re-characterisation of the civil law contract, it should avoid any practice which has any of the primary factors of employment as described above.