The Hungarian parliament has approved measures to tighten border controls and put all migrants in camps along its border, the state news agency MTI reports.
MPs voted 138-6 in favour of the law, with 22 abstentions.
Under the new rules, all asylum seekers, both those who entered Hungary earlier and newcomers, are to be held in "transit zones."
Migrants whose applications are not immediately approved will not be allowed to move freely around Hungary but will be detained in the camps, Lajos Kosa, the parliamentary group leader of Orban's Fidesz party, said earlier last month .
Hungary has been a focal point of Europe's migration crisis, with hundreds of thousands passing through in 2015 in often chaotic scenes on the frontier with Serbia - the external border of the EU's passport-free Schengen area - and a Budapest rail terminus.
Hungary's decision to detain all asylum seekers and migrants in camps runs counter to international law and will further traumatise people who have fled violence, the UN Refugee Agency (UNHCR) says.
Adults and children will be forced to live in shipping containers surrounded by high razor wire fences, the UNHCR says.
"This new law violates Hungary's obligations under international and EU laws, and will have a terrible physical and psychological impact on women, children and men who have already greatly suffered," UNHCR spokeswoman Cecile Pouilly says.
Under international and EU laws, the detention of asylum seekers is only justified if there are no reasonable alternative measures that can be implemented, she says.
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