Hungary or School Limiting Expat Contracts?

[shawanda]

Just got word that at least one well known (and arguably most reputable) international school in Hungary is now going to advertise positions as having initial two-year contracts with only a one-year max renewal after that. Is this a school-specific change or something that is being mandated from the Hungarian government? It reminds me of what they do in other locales, but this term is even shorter!

[reisgio]

Eww. Ultimate sketchiness. That school is letting Budapest and Hungary down by such actions; it's going to turn the school into nothing more than a three-year stag . destination for international teacher rejects.

[sid]

I’d hate to work in such a situation. Not only do I hate moving so much that I’d never willingly sign on to such a limited stay, but if I did I’d be surrounded by colleagues who were already planning their departure. Horrifying.

[mysharona]

Perhaps a budgetary issue, when your scale only goes up three steps you can save some cash?

[sid]

It could be a tax issue too. Some schools have tax agreements with the government, allowing no tax or low tax for expat teachers, but those deals typically don't last forever. If Hungary has limited it to 3 years per person, that would explain it. Still, horrifying for the school.

[PsyGuy]

Disagree with @Sid, if it is a tax issue its up to the IT to determine if they want to remain and renew and pay taxes after their third year. Capping all contracts at 3 years without considering ITs willingness against such tax burden is going to result in exactly what @reisgio indicated, a three year stag par†y for IT rejects who (agree with @Sid) will have one foot out the door at the start.

[sid]

Not necessarily. In some countries there is a portion of tax paid by the employee, and another portion paid by the employer. In one of my countries, the employer's share was equal to 47% of the salary. So no, they didn't offer people the choice of staying after their tax-free time expired. Of course, in that country, the limit was 5 years, which is much better than 3.

[PsyGuy]

@sid

I many countries there is a tax portion payed by the employer. Even in your scenario the IS is assuming that an IT wouldnt want to absorb that 47% tax which the IS could pass on to the IT. Even assuming most ITs wont want to stay its not a government requirement that the ITs leave after the expiration of the free tax allowance.
Regardless, that isnt the case in this scenario. The tax rate is 15 percent and the social security rate for employers is 21%

[sid]

Ahh, but the employee’s share was also in the 40’s. So assuming both shares would have required the employee to take an effective salary cut of about 90%. It might be an assumption that the teacher wouldn’t want to do that; I’d call it a fair assumption.
It’s been some years though. No idea what the situation is in that country today.
As for Hungary, that still seems a pretty big pay cut. Anyone here willing to take it?

[Heliotrope]

They currently only advertise one position, a Middle School / High School Learning Innovation Coach, where 3 years is indeed the maximum length of employment.
It could just be this position, or have you heard of other positions as well?

[Heliotrope]

@shawanda

I emailed the school asking about this, and they swiftly replied:

"We do not have a new policy. This condition is valid for our special vacancy (MS/HS Learning Innovation Coach) only."

So nothing to worry about.

[PsyGuy]

@Sid

Thats a fair assumption, but not an absolute one. There are ITs who have taken appointments where their spouse is is the primary source of income and the IT has taken the appointment for the tuition/fee waivers/places. It might be difficult to imagine an IT would take a 90% reduction in pay but not impossible.

@Heliotrope

Did they comment on why this position, and this position only?
I can imagine they feel 3 years is enough time to get what they are going to out of a particular IT, and then they want someone new with new ideas to come in and contribute more growth.

[Heliotrope]

PsyGuy wrote:
> @Heliotrope
>
> Did they comment on why this position, and this position only?
> I can imagine they feel 3 years is enough time to get what they are going
> to out of a particular IT, and then they want someone new with new ideas to
> come in and contribute more growth.


No, they didn't say, but perhaps they have some particular issues that need addressing and they think it should be resolved in three years, or maybe they don't have the budget for more than 3 years. Or they want to hire someone back in 3 years who they liked, but won't be available the next three years.