07.11.2019

Labor law in Poland

These are the highlights if you want to know more about Foreigg Investment in Poland. This entry was drafted by EWRA Sp. z o.o.

This collaboration is a brief step-by-step guidance. In no case it can be considered as legal advice. If you want -or need – legal advice, ask for a lawyer or a law firm. In that case

EWRA Sp. z o.o. is an excellent option in Poland.

Labor law in Poland

In Poland it is possible to employ on employment contract or civil law contract.
The provisions of the Polish labor code relate only to persons who are employed
on an employment contract. Persons employed under a contract of civil law contract
(e.g. contract of mandate, task-specific contract) are not considered as employees
and do not apply to the provisions of the labor code.

Work on the basis of an employment contract means that the work is done under
the supervision of the employer, at the place and time specified by the employer,
that the employer is obliged to pay the remuneration. The name of the contract does not matter, but its content. Which is important, because replacing of civil law contract
by employment contract , even though the above conditions are fulfilled, may result
in negative consequences for the party employing such persons in accordance
with the provisions of the law.

Employment contract types

All foreigners, EU and non-EU residents, may be employed under the same type
of contracts as Polish citizens.

There are three types of employment contracts in Poland:

employment contract for a trial period
Employment contract for definite period
Employment contract for indefinite period

Employment contract for a trial period can be concluded on up to 3 months.
This type of contract may be preceded by employment contract for a definite or indefinite period. Employment contract for definite period may be concluded for a maximum
of 33 months. You can conclude up to three such contracts in a row. It should
be remembered that a contract that exceeds 33 months or is the fourth contract in a row will be treated as a contract concluded for an indefinite period.

Employment of foreigners

It is possible to employ foreigners in Poland who holds work permit. This document
is issued at the request of employer by the competent local authority (Voivode).
The procedure for issuing such permit takes about 3-4 weeks.

Different rules apply to citizens of the Republic of Armenia, Republic of Belarus,
the Republic of Georgia, Republic of Moldova, the Russian Federation and the Ukraine. Citizens of these countries can perform work in Poland for a period of not more than 6 months during the 12 consecutive months without a work permit. In this case the employer must only submit the employment Declaration of the intention to employ
a foreigner in relevant employment office. In addition, the foreigner must have a document confirming his right to stay in Poland.

A work permit is not required for the citizens of the European Union, the countries
of the European Economic Area and Switzerland. The inhabitants of these countries
can perform work under the same conditions as Polish citizens. However, if a foreign national (EU citizen) is planning to stay in Poland for more than 3 months, he or she should register at the regional office.

Employment contract

The employment contract should specify the parties to the contract, type of contract, date of its conclusion, as well as working conditions and remuneration, including in particular:

type of work
the place where the work is performed
remuneration corresponding to the type of work, detailing the components
of remuneration,
time of work
the date of commencement of employment

In addition, the employer has to inform the employee in writing, no later than within
7 days from the date of conclusion of employment contract about:

the standard daily and weekly working time binding the employee
the frequency of wage payments
the length of the annual leave to which the employee is entitled
the length of the period of notice binding after termination of employee’s
work
each collective agreement covering employee

If the employer is not obliged to set work regulations, he or she should additionally inform the employee about night hours, place, date and frequency of payment of wages
and the procedure of confirming the arrival and presence of employees in the workplace, as well as the procedure of justifying their absence from work.

Wages

Wages in Poland must not be lower than the minimum wage fixed every year by the Council of Ministers. In 2018. Minimum wage is PLN 2100 gross.

The employer is obliged to establish which insurance type is the person employed by him or her subjected to, and also employer has the obligation to report to the insurance
and contributions for these people in the term specified by a law. The employer is obliged to pay monthly social security and health insurance premiums as well as income
tax advances. The tax advance must be paid by the 20th day of the next calendar month. The social security contribution should be paid by the 15th day of the next calendar month.

The amount of income tax from individuals and contributions due in Poland, depends on the income level. If this income does not exceed PLN 85528.00 income tax is 18%,
and if the income is higher than PLN 85528.00 tax is PLN 15395.04 and 32% of the excess over income of PLN 85528.00.

Termination of contract

There are 3 methods of termination of employment contract in Poland:

termination by mutual consent
termination with notice
termination without notice

The employer may terminate the employment contract without notice:

in the event of a serious breach of the employee’s basic duties by the employee
If an employee commits an offense, which prevents further employment at the given job position – if the crime is obvious or has been declared final by valid court decision
If the employee, due to his fault, loses license required to perform work on the given post
if the employee is unable to work as a result of the disease:
- for a period longer than 3 months – if the worker has been employed at given employer for less than 6 months
- longer than the total period of collecting wages and social and sickness benefits from this account, as well as receiving a rehabilitation allowance for the first
  3 months – if the employee has been employed by a given employer for at least 6 months or if the incapacity to work was caused by an accident at work
  or occupational disease
If an employee has justified absence from work with other than the above reasons, lasting longer than 1 month

The employer may terminate the employment contract without notice:

if he or she received a medical certificate stating the detrimental effect of the work performed on the health of the employee, and the employer, within the period specified in the medical certificate, did not transfer the employee to another position appropriate to his state of health and the corresponding professional qualifications
in case of a serious violation of the basic obligations of the employer, in this case, the employee is entitled to compensation in the amount of salary for the notice period.

An employee with whom a contract of employment has been terminated without notice in violation of the provisions on termination of employment contracts is entitled to claim:

restoration to work on previous conditions,
compensation

Upon the return to work or compensation, the labor court decides. A labor court may fail to take into account the employee’s request for dismissal as ineffective or reinstatement if he determines that it is impossible or pointless to take such a request into account;
in this case, the labor court shall decide on compensation.

Notice period

Employment contracts can be terminated by notifying each party. Notice period depends on the period of employment. Periods of termination of contracts for a definite and for
an indefinite period are:

2 weeks if the employee has been employed for less than 6 months,
1 month, if the employee has been employed for at least 6 months
3 months, if the employee has been employed for at least 3 years

In the case of a contract for an indefinite period, termination by the employer should include justification for termination. Polish law does not provide a directory of acceptable reasons for termination of employment, however, indicates that the reason for this must be real, specific and understandable to the employee. This is very important, because many court disputes between the employee and the employer result precisely in this area due
to the insufficiently specified reason for terminating the employment contract
to the employee.

In the case of contracts for a trial period, notice periods are:

3 business days if the trial period does not exceed 2 weeks
1 week if the trial period is longer than 2 weeks
2 weeks, if the trial period is 3 months

Time of work

In Poland the working time should not exceed 8 hours per day and an average of 40 hours on average five-day work week. For work performed beyond normal working time employee is entitled to additional compensation. Other systems, which allow
to extend daily working time, can be entered, but this depends on the fulfilment of specific conditions which are mentioned in the Polish labor code.

Holiday

The employee is entitled to annual paid leave of 20 days-if the employee has been employed for less than 10 years or 26 days if the employee has been employed for at least 10 years. The periods of employment include,for example the time spent at university

During the employee’s inability to work, the employee retains the right to remuneration. The salary is due in the amount of 100% or 80% of the normal salary depending
on the cause of the incapacity to work. The employer is obliged to pay remuneration
for the first 33 days of inability to work in a given calendar year. If the incapacity to work lasts longer, the employee is entitled to sickness benefit paid by the social security institution (Social Insurance Institution – ZUS) for a period of up to 182 days.

In Poland employee can be given so called unpaid leave . A period of unpaid leave is not counted into the period of employment.

Health and Safety

The employer is obliged to protect the health and life of employees by ensuring safe
and hygienic working conditions. In particular, the employer is obliged to organize work
in a way that ensures a safe and hygienic working conditions, provide employee training regarding occupational safety and health before allowing it to work and conducting periodic training in this regard, training in the field of safety and health at work to the extent necessary to perform the obligations incumbent on it duties, familiarize employees with the principles of safety and health at work concerning the activities performed by them.

Violation of workers’ rights under provisions or rules of occupational health and safety may give rise to criminal or non-pecuniary liability.

Temporary employees

The employment of temporary employees is regulated by a separate act – of July 9, 2003 on the Employment of Temporary Agency Workers. In accordance with the Polish law
of the employment, temporary contract shall be understood as:

seasonal, periodical or occasional work; or
work that the employees of the user’s enterprise would not be able to do on time; or
work that falls under the responsibility of the employee of the user’s enterprise who is absent.

The Act adopted the characteristic for temporary employment of three entities: employee, temporary employment agency and employer:

the temporary employment agency runs a contract with the employer’s enterprise, specifying the employment rules for the temporary employee;
the temporary employment agency employs a temporary employee;
temporary employment agency appoints a temporary employee to perform temporary work for the employer’s enterprise.

It should be noted that the temporary worker remains an employee of the temporary employment agency. But, it is the employer’s enterprise that instructs the temporary worker, and then oversee its operation.

It should be noted that unless the legislation provides otherwise, the provisions of the labor law concerning the employer and employee shall apply by analogy to temporary employment agencies, temporary agency worker and the employer’s enterprise (with some exceptions).