The Whistleblowers Act contains compliance requirements for medium-sized businesses in Hungary. We provide insights into the opportunities and challenges of whistleblower systems, drawing on international case studies and the experiences of multinational companies.
The whistleblower legislation in Hungary requires businesses with over 50 employees to establish a reporting system. The rules were introduced in accordance with the Whistleblower Directive of the European Union (Directive 2019/1937). A whistleblower system allows companies to uncover harmful practices within the company. This can take many forms, such as damage by fraud, corruption, malpractice or negligence. If not addressed, these harmful practices can result in serious damage to the company and to fines when harming public interest.
While in most European countries filing complaints is only possible for employees, Hungarian legislation requires the company to handle complaints not only by its own employees but also by other individuals authorized by the law. Employers must allow whistleblowers to file reports both in writing and verbally.
It is a further special feature of the Hungarian whistleblowing legislation that companies must also accept anonymous reports, however they are not obliged to examine them. Nevertheless, it may be in the interest of the company to investigate anonymous reports, as they may contain useful information. Also, if the company implements the Standards ISO 37301 and ISO 37001 it is bound to respond to anonymous complaints as well.
International studies have found that most whistlerblowers wish to remain anonymous and about 90 percent of all whistleblowers file their reports outside of working hours. Most companies therefore work with external providers to operate their whistleblowing systems. In practice, online reporting platforms are commonly used in Europe, however they may not provide full compliance under Hungarian law because of the broader scope of responsibilities of employers in Hungary. The whistleblower system service of Gyarmathy&Partners allows full Hungarian compliance, making it possible for companies to efficiently respond to whistleblowing complaints.
Most multinational companies view whistleblowing systems not just as a compliance obligation but also as valuable asset. Economic research has found that 80% of companies with a whistleblower system successfully uncovered the unlawful activity and damage stated in whistleblowing reports. Finally, implementing an efficient whistleblower system not only provides financial benefits for the company but also improves the company's compliance culture, integrity, and the personal responsibility of its employees.
We are dedicated to adding value to our clients’ businesses through understanding their objectives and supporting them in achieving their goals. With over 20 years of international experience and a strong focus on digitalization we provide full scale professional services at a single point of contact.
In our Case Studies we have described some examples of how we work for our clients and what benefits we have achieved for them.
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Businesses looking to permanently outsource their accounting and reporting functions can benefit from our full-scale, fully digitalized accounting solutions, including a wide range of professional services.
Our outsourced accounting services are built on three pillars:
Depending on your preference, we will maintain your accounts in HUF or any other functional currency such as EUR, USD, or CHF. We also manage all interconnected tasks arising from foreign currency accounting.
Our comprehensive accounting services include filing financial statements and registering your firm in the electronic systems of the Hungarian tax administration. We also prepare and submit your tax returns electronically.
If your company requires a tailored management information system in Hungary, we will adapt our services to align with your preferred accounting system, policies, and data format.
Our fully digital accounting platform streamlines financial management for businesses of all sizes. With a cloud-based system, our clients can gain real-time access to their accounting data, ensuring accuracy, transparency, and efficiency. The integration of tax compliance features also ensures that businesses remain up to date with local regulations, avoiding costly penalties.
We will generate detailed financial reports tailored to our clients’ needs, a further useful function of our fully digital accounting system. These reports provide valuable insights into cash flow, profitability, and the overall financial status, enabling better decision-making.
Another key advantage is the flexibility of digital collaboration between our clients and their accountants. A centralized platform allows for efficient document sharing and direct communication with our financial professionals. This enhances workflow efficiency and ensures that accounting tasks are completed accurately and on time. Whether managing payroll, tax filings, or financial planning, our clients benefit from a reliable, secure, and scalable accounting solution tailored to their specific needs.
We understand the importance of a smooth and efficient accounting process, also in cases when you wish your financial data to be integrated in your company’s own ERP-system. To ensure that financial data is seamlessly integrated into your ERP we handle the direct upload of your accounting data, eliminating errors and saving valuable time.
This automated process ensures that your company always has access to up-to-date financial records, improving accuracy and operational efficiency. Quarterly, monthly or weekly financial reporting enhances decision-making by providing your management team with precise, reliable insights.
We tailor our accounting services to our clients’ needs—whether for permanent outsourcing or for temporary support until an in-house accounting department is established.
We provide expert accounting advice, especially valuable in the early stages of business operations. Our team also advises on implementation and compatibility related to IFRS, US-GAAP, and Hungarian Accounting Standards.
While most companies in Hungary maintain accounts in Hungarian Forints (HUF), this may not be ideal for internationally active businesses. We guide our clients through the process of transitioning their accounting system to a preferred functional currency, such as EUR, USD, or CHF.
Once implemented, we support your accounting team in maintaining the accounts, compiling financial statements, and managing all related tasks in the chosen currency.
We offer payroll services for companies that require complete confidentiality of salaries or find it impractical to employ an in-house payroll team. This is particularly beneficial for:
Our payroll experts meet all legal requirements for handling payroll for companies with over 100 employees.
We handle full-scale payroll administration, allowing your company to focus on core business operations. Our services include:
Most clients who outsource their accounting with us also choose to use our payroll services.
For an estimate of employer wage costs, you can use our online salary calculator.
International businesses that do not wish to maintain a physical office in Hungary can outsource their registered office to us.
We can:
A registered office is a supplementary service available to clients outsourcing their accounting and reporting with us.
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