Poland HR Information

Updated on: 2025/03/11 04:48 (UTC)

Overview

Polish labor law is statutory, but with an increasing number of court rulings interpreting its provisions. The core act of Polish labor law is the Labor Code, although there are a variety of additional regulations covering labor unions, collective disputes, group redundancies, safety and hygiene and other issues.

The most basic rule of Polish labor law is that the provisions of an employment relationship may not be less favorable to employees than the provisions of statutory law.

Hiring

Employment Contracts

Employers are required to conclude an employment contract with individuals when:

• they are obliged to perform their duties personally,
• the work they perform is supervised and performed at the time and place specified unilaterally by the company and
• they receive remuneration in exchange for their availability at specified times and places.

In such circumstances, the individual’s work is considered performed under an employment relationship, regardless of the title given to the contract by the parties. Offering a civil contract in these circumstances is penalized.

An employment relationship is established mainly on the basis of a contract of employment. There are additional bases of employment in Poland, however, including appointment, election, nomination or cooperative contract of employment, although these are available in only a limited number of circumstances. This is why the most popular form of employing people is an employment contract.

An employment contract is drawn up and offered to a candidate for signing before the candidate commences work. If there is no written contract signed, the company must provide an employee with written confirmation of the type of employment contract and the core employment conditions, including remuneration.

Lack of such written confirmation concerning the work particulars is considered a labor law offense and is punishable by a fine of up to 30,000 zloty. The fine is imposed on the company’s management board members or other persons responsible for HR matters.

There is no obligation to send the candidate an employment offer (letter of engagement) in advance. If a letter of engagement is delivered to a candidate, accepted, signed and returned to the company, however, it is binding on both parties, even if the final employment contract is still unsigned. Employment can be unilaterally canceled by the company before the agreed start date if the company changes its decision regarding employment of the selected candidate.

Every employment contract must contain the following:

• personal details of the parties,
• execution date,
• type of contract,
• start date,
• place of work,
• type of agreed work/position,
• base salary,
• other specific components payable in addition to the base salary and
• working time status of an employee (i.e. full-time/part-time).

The type of work may be defined by naming the profession or the specialty, function or position of the employee and preferably should be supported with a brief job description.

An employment contract may be concluded for:

• an indefinite period,
• a definite period (fixed-term contract) or
• a trial period.

Contracts for an indefinite period of time are the most common. They provide more protection for employees, since an employer must give reasons when terminating a contract and the dismissed employee may challenge these reasons in court.

Employment contracts may be preceded by a separate probationary employment contract concluded for a period of no more than three months. Ordinarily, an employment contract concluded for a probationary period may not be extended for a consecutive trial period even if the company is not entirely happy with the employee’s work on the date the first probationary period ends.

An employer may enter into a new probationary contract with the same employee if:

• the worker is to be hired for a different job or
• the type of work is the same as before but at least three years have elapsed from the date of termination or expiration of the previous employment contract.

The total maximum duration of fixed-term employment is 33 months. Exceeding this threshold or entering into a fourth fixed-term contract will automatically transform the employment contract from fixed-term to indefinite.

Work can sometimes be carried out on the basis of a civil law contract (freelance agreement, service agreement or consultancy agreement). A person working under this type of contract does not have the employee rights set out in the Polish Labor Code. An employment contract cannot be replaced with a civil law contract if the conditions of an employment relationship exist.

An employer can hire a temporary worker for a maximum of 18 months within 36 consecutive months.

Job candidates can be required to provide data on their education, qualifications, or previous employment only when they are applying for jobs that require special qualifications or experience. Employers cannot ask for employees’ consent in order to collect data on their criminal record.

Remote Work: Poland amended its labor code to govern remote-work arrangements. Provisions in employment contracts on the rules and “performance of remote work” are permissible under the amended law. The “arrangement may be made at the initiative of the employer or at the request of the employee submitted in paper or electronic form.”

Restrictions on Hiring

The minimum age for employment in Poland is 16, but that is limited to light work only. Beginning at age 18, there are no restrictions on the type of labor that can be required.

Young workers (below age 18) and pregnant employees may not work at night.

Recordkeeping

Employers may store payroll records in paper or electronic form and employees can request copies of such records. For employees whose employment began in 2019 or later, the minimum retention period for payroll records is 10 years. For employees employed from 1999-2018, the minimum retention period for payroll records is 50 years, but the period can be reduced to 10 years if the employer submits an information report to the Social Security Office. The minimum retention period for payroll records of employees employed before 1999 is 50 years.

Employers must maintain records of the circumstances and the causes of an accident at work and all other documentation related to the accident for 10 years.

Employers that fail to keep proper records can be subject to a fine of up to 5,000 zloty.

Background Checks

The information employers can require job candidates to provide is limited to:

• name and surname,
• names of parents,
• date of birth,
• place of residence,
• education and
• employment record.

Employers generally cannot demand a candidate’s criminal record as it is beyond what is allowed under the Labor Code, unless it is otherwise required by another legal provision for a specific position. Financial services companies, for example, may demand a candidate’s criminal record to prove he/she may qualify for a position that legally requires the candidate to have no criminal convictions. Such an employer will need a criminal record certificate from the National Criminal Register (Krajowy Rejestr Karny, or KRK), which is part of the Ministry of Justice, unless the employer is satisfied with relying on an employee’s declaration of non-conviction. Forms and fee information for certificates are available at the Register’s website.

Noncompetition Agreements

Parties to an employment contract may decide to enter into a separate agreement obliging the employee not to engage in competitive activities while employed by the company and/or for a certain period after termination or expiration of an employment contract.

On the basis of this agreement, an employee may be prohibited from taking up activities competitive with the employer or former employer, including entering into an employment relationship with a competitor.

A post-contract noncompetition agreement may only be executed if the employee had access to specific important or sensitive information, the disclosure of which to third parties could expose the company to damage. This agreement must be signed before termination of the employment contract for it to be binding, and it must define the period of the competition ban.

An employee is entitled to compensation in exchange for refraining from working for a competitor after termination or expiration of his/her contract in an amount not less than 25 percent of the total earnings the employee received for a period prior to termination equal to the period of the post-contract competition ban.

Employees must protect company trade secrets as long as the information is not publicly known or readily accessible. This means that employees’ obligation to the protect confidential information does not end once they leave their employer. Breaching a trade secret is a criminal offense punishable by up to two years of imprisonment.

Reference Citations

Employment Contracts: Labor Code (as amended) (Polish)

Restrictions on Hiring: Labor Code (as amended) (Polish);

Recordkeeping: Labor Code (as amended), (Polish); Act on Amendments of Certain Acts in Connection with Shortening the Period of Storage of Employee Files and Their Electronization, 2018 (Polish)

Background Checks: Labor Code (as amended) (Polish)

Noncompetition Agreements: Labor Code (as amended) (Polish)

Immigration and Work Permits

In General

Most non-EU nationals must generally have obtained a work permit before beginning employment in Poland. Foreigners may also be required to obtain a visa or temporary residence permit.

Visas and Work Permits

Foreign nationals generally need to obtain a work permit to be legally employed in Poland.

A work permit is not required of European Union nationals or long-term residents, however, or citizens of Iceland, Norway, Liechtenstein, and Switzerland, who can enter the country and start working from their first day of residence, although if the anticipated stay is longer than 90 consecutive calendar days, they must register at a local immigration office. As a rule, other nationals need to have a valid visa to enter Poland, unless they are explicitly exempt by EU regulations from this requirement, as U.S. citizens are. Members of the families of EU employees who stay in Poland are also exempt from the requirement to obtain a work permit.

Prior to a company hiring a foreign worker, the provincial governor must be satisfied that no Polish national is available who could fill the job and that attempts have been made to recruit a Polish national for the position and have failed. In addition, the foreign national must be paid at least as much as a Polish national doing similar work would be.

Foreigners exempt from the visa requirement can stay in Poland for up to 90 days in any 180-day period and can perform work during that 90-day period if they obtain a work permit. If they expect a longer stay, they must apply for a temporary residence permit.

Citizens from countries other than EU member states, Iceland, Norway, Liechtenstein, and Switzerland must generally have obtained a work permit before beginning employment in Poland, whether work is performed under a local employment contract, service/consultancy agreement, or secondment arrangement.

Foreign nationals can temporarily work without a work permit for:

• up to 30 days in a calendar year if their company transfers them to perform work in a branch office, subsidiary, or affiliate operating in Poland;
• up to 30 days in six consecutive months if they are transferred to work in Poland but not in a branch office, subsidiary, or affiliate operating in Poland; or
• up to six months in 12 consecutive months if they work as board members of a company incorporated under Polish law.

Generally, business visitors are not required to obtain work permits, although they must obtain business visas prior to entering Poland unless they are visa-exempt nationals. Permissible activities during business visits are limited to attending business meetings, discussions, seminars, or fact-finding meetings.

Work permits are issued by the immigration office for the place of residence of the employing entity (if Polish) or host company (in case of secondment to Poland). As a rule, work permits are valid for a maximum of three years and can be extended. The standard waiting period for obtaining a work permit is approximately 30 days. Typically, the application for the work permit is filed by the employer, but it may be filed by the foreign worker if a “simplified” procedure (in which a work permit and a residence permit are combined) applies. The application should be made at least six weeks before the planned assignment start date.

Work permits are issued for a specific company, specific international assignee, in a specific place, for a specific work position, and for a period defined by specific dates. Permits are not generally transportable between different companies or EU countries.

In addition to a work permit, foreigners may be required to obtain a visa or temporary residence permit to enter Poland or live in Poland while working there. Foreign workers are eligible for temporary residence permits valid for three years and may apply simultaneously for work and residence permits.

Foreign nationals from outside the EU may obtain a temporary residence permit in Poland when they are part of an intracompany transfer from another (non-EU) country. These permits are valid for three years for managers and specialists and one year for interns. Once these permits expire, the employees must leave Poland unless they receive another type of residence permit.

In order to be eligible for the intracompany transfer permit, the employees must have worked for their employer or the same group of companies for at least 12 months in the case of managers and specialists and for at least six months in the case of interns. Family members of employees transferred to Poland may join these employees immediately and can enter the Polish labor market.

Penalties

Both the employer and the foreign worker may be held liable for breaching Polish immigration laws. Depending on the specific violation, penalties can range from 3,000 zloty to 10,000 zloty.

Reference Citations

Visas and Work Permits: Labor Code (as amended) (Polish)

Nondiscrimination

In General

Any direct or indirect discrimination in employment—particularly on the basis of sex, age, disability, race, religion, nationality, political views, trade union membership, ethnic origin, religious convictions, sexual orientation or work status (employment for a definite or an indefinite period, full- or part-time)—is forbidden.

Types of Nondiscrimination

Employees must be treated equally with regard to: employment initiation, conditions of employment, promotion, access to training to raise their qualifications and termination of employment. The burden of proof that there has been no breach of the principle of equal treatment rests with the employer.

In certain circumstances, particularly in relation to the requirements of the job or in order to protect young or older employees or disabled people, differential treatment based on age or on incapacity certified by an occupational health specialist does not constitute prohibited discrimination. This differential treatment must be objectively and reasonably justified by a legitimate objective and the means of achieving this objective must be appropriate and necessary.

Disability Discrimination

Any company employing more than 25 employees is obliged to contribute every month to the Rehabilitation of the Disabled Fund unless at least 6 percent of its total workforce is disabled.

Gender Discrimination

Sexual harassment is a specific type of discrimination on the basis of sex. It is defined as “any unacceptable sexual behavior or any behavior related to the employee’s sex, aimed at or resulting in violation of dignity or in humiliation or abuse of an employee.” Such behavior may be manifested by physical, verbal or nonverbal elements.

Pay Discrimination

All employees have a right to equal remuneration for the same work or for work of the same value.

EU Pay Transparency Directive: As a member state of the European Union, Poland has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings.

Other Forms of Discrimination

Actions or behaviors consisting of persistent and long-lasting harassment that is humiliating, isolating or ridiculing are regarded as bullying. Employees can claim damages if their health has suffered due to bullying or if they terminated employment as a result of bullying.

Reference Citations

Nondiscrimination: Labor Code (as amended) (Polish)

Gender Discrimination: Labor Code (as amended) (Polish)

Pay Discrimination: Labor Code, (as amended) (Polish)

Other Forms of Discrimination: Labor Code (as amended) (Polish)

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

The Act of May 10, 2018 on Personal Data Protection (New Data Protection Act) supplemented certain provisions of the Labor Code relating to employee privacy. The New Data Protection Act established a new supervisory authority, the President of the Office of Personal Data Protection (POPDP). The POPDP may issue administrative decisions and consider complaints regarding enforcement of the provisions on the inspection of personal data.

Employee Monitoring and Surveillance

Monitoring of employees is permitted under Polish law provided employees are informed about the monitoring, the monitoring is not excessive, and it does not infringe any of the employees’ personal rights.

Video monitoring may be used to ensure employee safety, protect employer property, and maintain company secrets. However, such monitoring cannot be used in order to obtain and process sensitive data about employees. Monitoring is prohibited in rooms not dedicated to work, such as bathrooms and lunch rooms. Employers must inform employees about the introduction of monitoring at least 14 days before the monitoring is activated.

Video recordings of employees can be retained for no longer than three months, unless the recordings are being used as evidence in legal proceedings.

CCTV monitoring of union activity on employers’ premises is banned by the Labor Code.

Reference Citations

Employee Data: General Data Protection Regulation, 2016; Act of May 10, 2018 on Personal Data Protection, 2018

Employee Monitoring and Surveillance: Act of May 10, 2018, on the Protection of Personal Data

Compensation

Hours of Work

Standard working hours may not exceed eight in a day and 40 in a week unless a specific work-time regime is applied (where extended daily working hours on certain days are balanced by additional time off on the remaining days of a given calendar month).

Employees are entitled to at least 11 hours of continuous rest each day and at least 35 hours of continuous rest each week.

Employees who work for at least six hours per day are entitled to a 15-minute break, which is included in working time. An employer may provide an additional break of up to an hour that need not be included in working time.

Night work hours are determined by the company and set out in the company special work bylaws. These must not exceed eight hours during any period between 9 p.m. and 7 a.m.

Minimum Wage

Effective Jan. 1, 2025, the monthly minimum wage increases to 4,666 zloty, up from 4,300 zloty.

First year workers may be paid 80 percent of the minimum wage. For work performed at night, employees are entitled to a special night-shift allowance of 20 percent of the hourly rate of the national minimum wage. An employee whose working time schedule includes at least three hours of night work is a night worker.

Overtime

Work above the standard limits is deemed overtime, which in most cases is limited to 150 hours per calendar year.

It is possible to set higher overtime limits in certain circumstances through a collective agreement, work regulations or individual employment agreements. The average number of hours worked in a week must not, however, exceed 48 within any reference (settlement) period, which generally may be up to four months. Under certain circumstances the settlement period may be extended to 12 months, provided that the health and safety conditions are preserved and that the employee representatives agree to such extension.

Employees are entitled to a 50-percent premium for overtime hours worked during a business day or a 100-percent premium for overtime worked at night, on Sundays or on public holidays that are not normal working days.

Wage Payment

Employers must pay employees at least once per month at a predetermined time and place.

If the agreed payday falls on a rest day, wages must be paid on the day before. Wages must be paid directly to employees’ bank accounts. Cash payments are possible at the request of the employee.

While employers are not always required to provide employees with payslips, they must maintain records of payments and deductions so as to provide them in the case of an investigation.

Mandatory Bonuses

Polish labor law does not regulate bonuses.

Reference Citations

Hours of Work: Labor Code (as amended) (Polish)

Overtime: Labor Code (as amended) (Polish)

Wage Payment: Labor Code (as amended) (Polish); Act on Amendments of Certain Acts in Connection with Shortening the Period of Storage of Employee Files and Their Electronization, 2018 (Polish)

Benefits

Vacation

Each employee is entitled to paid vacation leave. Full-time employees with less than 10 years of employment history have the right to 20 days of holiday leave per year. Employees with more than 10 years of employment history are entitled to 26 days of holiday leave per year. Part-time employees’ holiday leave entitlement is prorated depending on their working hours.

New employees hired for the first time in their career earn their holiday leave entitlement in the first calendar year on a monthly basis at a rate of ¹ / ₁₂ per calendar month of service (effective from the end of a calendar month). After the first calendar year, they earn their entire annual holiday leave entitlement on Jan. 1.

Employees must take at least 14 consecutive calendar days of vacation in a leave year. Any unused vacation is carried over to the following year and should be used by Sept. 30. If this does not happen, however, the employee is entitled to request the vacation by the time the entitlement for a given calendar year expires. The limitation period is three years.

As part of their annual vacation leave, employees may request not more than four days off in each calendar year on the dates of their choice. In such cases, employees must notify their managers of their intention to take such leave on or before the start date.

Cash payment in lieu of leave is only allowed on the employee’s departure from the company. It cannot be used to balance any outstanding holiday leave banked by an employee while employed with the company.

The schedule of leave is established by the employer, under consideration of requests from employees and the need to ensure a regular course of work. Employees may not renounce their right to leave.

Holidays

Employees are entitled to the following 13 paid public holidays:

• Jan. 1: New Year’s Day
• Jan. 6: Epiphany
• Easter Sunday and Monday
• May 1: Labor Day
• May 3: Constitution Day
• 1st day of Whitsun Holidays
• Corpus Christi
• Aug. 15: St. Mary’s Ascension Day
• Nov. 1: All Saints’ Day
• Nov. 11: Independence Day
• Dec. 25 and Dec. 26: Christmas

In general, work on public holidays is forbidden with the exception of services that are necessary due to their public usefulness or shift-timing requirements. A day off in lieu must be granted when an employee has to work on a public holiday (regardless of the number of hours worked).

Holidays that fall on a weekend are not moved to the next day.

Maternity Leave

A female employee is entitled to the following periods of maternity leave for the birth or adoption of a child:

• 20 weeks for the birth or adoption of one child,
• 31 weeks for the birth or adoption of two children,
• 33 weeks for the birth or adoption of three children,
• 35 weeks for the birth or adoption of four children, and
• 37 weeks for the birth or adoption of five or more children.

Maternity leave may commence no earlier than six weeks before the expected date of childbirth. The remaining leave must be taken in full immediately after childbirth. An employee must take a minimum of 14 weeks’ maternity leave before returning to work. Any untaken leave beyond 14 weeks can be used by the child’s father.

Following maternity leave, working mothers are also entitled to parental leave.

Mothers must take a minimum of eight weeks’ maternity leave before returning to work in the case of a stillborn baby. If the child dies within the first eight weeks of maternity leave, the mother has the right to remain on maternity leave until this eight-week period is completed, but in no circumstances must she return to work earlier than seven days after the child’s death. If the child dies after eight weeks, the mother has the right to stay at home for seven days before returning to work.

An employee on maternity leave is entitled to maternity benefits covered by the public sickness insurance fund operated by the State Social Security Office.

An employee must submit a special written request at least 14 days before the planned commencement of leave.

A female employee who works more than six hours a day and is breast feeding a child must be allowed to take two half-hour breaks per day. Female employees who are breast feeding more than one child are entitled to two breaks from work of 45 minutes each.

An employee on maternity leave is entitled to paid benefits covered by the public sickness insurance fund operated by the State Social Security Office.

Paternity Leave

Fathers taking care of a child may request two weeks’ paternity leave until the child is 2 years old. Standard paternity leave can be taken simultaneously with the mother’s maternity leave. Paternity leave can be taken in a maximum two installments, each not shorter than one week.

The employee-father must submit a special request at least seven days before the planned commencement date of his leave.

In addition to this standard paternity leave, any untaken maternity leave beyond 14 weeks can be used by the child’s father. Fathers may also take the mother’s maternity leave if she becomes ill and is unable to take care of the child due to hospitalization or if she dies during or after childbirth before the maternity leave is completed.

An employee on paternity leave is entitled to paid benefits covered by the public sickness insurance fund operated by the State Social Security Office.

Fathers are also entitled to parental leave.

Sick Leave

In cases of inability to work due to illness, employees are entitled to 80 percent of their average earnings calculated on the basis of the salary received for the 12 consecutive months preceding the period of disability (sick pay).

The employer covers sick pay for up to 33 days in a calendar year (regardless of breaks), after which the State Social Security Office assumes payment for a maximum 182 consecutive days per year. For employees aged 50 or more, the company only has to cover sick pay for the first 14 days of sickness in a calendar year. Further sickness payments are assumed by the Social Security Office.

If an employee is on sick leave due to an accident at work or while traveling from or to work or due to pregnancy, the employee has the right to 100 percent of average earnings.

Other Leave

Parental leave. On March 9, 2023, Poland modified its labor code to transpose the EU Directive on Work-life Balance for Parents and Carers (2019/1158) into national law. Covered employers must allow both parents of a child to take nine weeks of parental leave that cannot be transferred to the other parent. The act also allows the father to receive parental leave benefits if the mother is not employed and covered by sickness insurance on the date of the child’s birth.

Parental leave. Immediately after using maternity leave, both parents are entitled to parental leave of up to 32 weeks (34 weeks for multiple births). Parental leave is also available to members of the immediate family.

Employees will have to request this leave no fewer than 21 days prior to its planned commencement and are entitled to receive statutory maternity pay (from social security) for any leave taken.

Parental leave can be taken as one continuous period of leave or as several periods (but not more than four), each not shorter than eight weeks and each period immediately after another. However, up to 16 weeks of parental leave can be used in the time which is not immediately after the previous part of the leave. The leave can be used until the end of calendar year in which the child turns 6 years old.

Employees will also be entitled to return to work part-time (no more than half time) during parental leave with at least 21 days’ notice. Employers will have the right to reject an employee’s request for part-time work if operational needs require it.

The employee’s position during parental leave is protected.

An employee who is raising one child aged up to 14 years is entitled to be released from work for two days in a calendar year, while continuing to receive remuneration.

An employee on parental leave is entitled to paid benefits covered by the public sickness insurance fund operated by the State Social Security Office.

Care-giving leave. Employees are entitled to five days per year of unpaid carer’s leave The leave can be taken to care for a family member, defined as a parent, child, or spouse, for serious medical reasons.

Childcare leave. Employees who have worked for at least six months are entitled to up to three years of unpaid childcare leave until the child is five years old. During childcare leave, an employee can work for the current employer or another employer or receive education or training if it does not interfere with caring for the child. At the end of the leave, the employee is entitled to be reemployed in the former or an equivalent position.

Force majeure leave. Employees are entitled to two days or 16 hours of leave, at the choice of the employee, per year of force majeure leave. The leave can be used for urgent family matters caused by illness or accident and requiring the employee’s presence. This leave must be paid at a rate of at least half pay.

Special events leave. An employee is entitled to one or two days off in the case of getting married, the birth of a child or a funeral of a close family member. An employee must also be given leave when summoned by a court or the public authorities to attend proceedings or in the case of a compulsory medical examination or blood donation.

Leave for parents of disabled children. Employees who are parents of children with disabilities can take up to 30 days’ leave per year in case of illness of their child. Parents of disabled children can also request flexible work time and remote working arrangements.

Special care leave. Employees who are released from work to care for a child up to the age of 8 years, or because of the unforeseen closure of the nursery, kindergarten, or school to which the child attends, are entitled to a care allowance paid by the social security fund of up to 60 days per calendar year. Covid-19 update (effective March 31, 2020): The 60-day care allowance has been extended by up to an additional 14 days if a nursery, kindergarten, or school closes because of the health crisis.

Military leave. On March 22, 2022, the Polish government passed a law (the Homeland Defence Act) to establish, among other things, a voluntary general military service, which provides civilians with a pre-tax monthly salary for a year to complete basic training and perform military duties. Recruits also will receive priority of employment in public administration if they are qualified for the position.

Pensions and Social Security

The legal retirement age is 60 for women and 65 for men.

Employees and employers jointly finance the social security system, which is divided into separate compulsory insurance funds: pension and disability insurance, sickness and maternity insurance and work injury and occupational disease insurance.

The pension system is based on a defined contribution mechanism that links the amount of future pensions to the sum of the contributions paid to employees’ accounts during their employment careers, the current situation in the labor market and the returns on investment.

The employee and the employer each pay 9.76 percent of the calculation base, which is a general monthly remuneration, to finance the pension system.

Effective since Jan. 1, 2019, for each employee, employers must pay additional pension contributions to either an Employees’ Capital Pension Scheme (Pracowniczy Plan Kapitałowy, abbreviated as PPK) or an Employees’ Pension Retirement Scheme (Pracowniczy Program Emerytalny, abbreviated as PPE). The PPK and PPE both are types of individual pension savings accounts.

Employers that make contributions to a PPK must, for each employee, make a contribution equivalent to 1.5 percent of the employee’s salary. Employees with an employer that provides these contributions to a PPK instead of a PPE are assessed a contribution rate of 2 percent of their salary for the PPK.

Employers that make contributions to a PPE must, for each employee, make a contribution equivalent to 3.5 percent of the employee’s salary. Employees with an employer that provides these contributions to a PPE instead of a PPK are not required to pay a percentage of their salary for the PPE.

Employers that as of Dec. 31, 2018, employed at least 250 employees are required to provide the aforementioned employer PPK or PPE contributions starting July 1, 2019, and employee PPK contributions would be required as of this date if their employer chose to make the PPK contributions instead of the PPE contributions. The PPK and PPE coverage requirements apply starting Jan. 1, 2020, to employers that as of June 30, 2019, had at least 50 employees, and to the employees of such employers with regard to PPK contributions. The PPK and PPE coverage requirements apply starting July 1, 2020, to employers that as of Dec. 31, 2019, had at least 20 employees, and to the employees of such employers with regard to PPK contributions. Starting Jan. 1, 2021, all employers must make the PPK or PPE contributions, and all employees whose employer is required to make PPK contributions also must make PPK contributions.

Workers’ Compensation

Employees who suffer work-related injuries or illness are entitled to time off if they have a doctor’s certificate that shows proof of incapacity. Employers are required to pay employees 100 percent of their remuneration during the first 33 days of incapacity (in the case of employees who have reached the age of 50, 14 days). Any sickness that requires the employee to miss work for longer than 33 days (14 days for employees over the age of 50) is to be financed through social insurance payments.

Reference Citations

Vacation: Labor Code (as amended) (Polish)

Holidays: Labor Code (as amended) (Polish)

Maternity Leave: Labor Code (as amended) (Polish); Labor Code Amendment, of July 24, 2015 (Polish)

Paternity Leave: Labor Code (as amended) (Polish); Labor Code Amendment of July 24, 2015 (Polish)

Sick Leave: Labor Code (as amended) (Polish)

Other Leave: Labor Code (as amended) (Polish); Labor Code Amendment of July 24, 2015 (Polish); Act of May 10, 2018, Amending the Act on Vocational and Social Rehabilitation and Employment of Disabled Persons and Certain Other Acts, 2018 (Polish)

Workers’ Compensation: Labor Code (as amended) (Polish)

Labor Relations

In General

Employees have a right to join unions as well as not to participate in them.

Right to Organize

Currently, the two largest trade union organizations are OPZZ (the All-Poland Alliance of Trade Unions) with headquarters in Warsaw and NSZZ Solidarnosc (the Solidarity Independent and Self-Governing Trade Union) with a national committee in Gdansk. Both OPZZ and Solidarity are members of the International Labor Organization. OPZZ has about 800,000 members, Solidarity 600,000. These trade unions have strong political orientations, NSZZ closer to the conservative “right,” OPZZ to the socialist “left.”

OPZZ and Solidarity represent employees at the Council for Social Dialogue, the basic institution for social dialogue between employers, employees and the government in Poland. The committee’s main aim is to conduct negotiations on wages and social benefits, tax liabilities, state budgets and other issues important for social stability.

Typically, trade unions operate at company level, and their members are employed in the same company. A company trade union organization can only be formed by 10 or more employees and must be formed without the participation of the company. The employer cannot block the formation of a trade union organization, but it does not have to recognize the union as the employee representative body until the organization is fully registered in the National Court Register

Trade union members do not have to be employed in one company, however. It is possible for employees of two or more companies (especially if they belong to the same capital group) to establish an intercompany trade union. Further, unions have the right to merge with other trade union organizations (both company and intercompany) into a federation of trade unions to increase their membership and influence.

Trade unions may also operate as nationwide organizations comprising employees of the same industry. Some nationwide organizations, such as NSZZ Solidarnosc, represent employees of a range of different occupations and industries in the public and private sectors. Nationwide trade union organizations and trade union federations can also merge into nationwide alliances of trade unions (confederations).

In principle, any trade union in a company must be recognized if the company has been notified of its existence by trade union officers. From the date of notification, the company must respect a trade union’s rights and privileges, provided the union meets the legal requirements to qualify as a company trade union unit. Any qualifying union must be informed and consulted on a wide range of issues, including the individual dismissal of trade union members or persons whose rights the trade union has agreed to protect, social fund issues and collective redundancies.

In order to exercise its full rights, a trade union must continuously have at least 10 members who are either employees of one company or employees of companies covered by the same intercompany trade union organization (provided that at least one member is employed by each of the companies). A trade union must provide the employer periodically with information on the total number of its members and the number of members employed in that company. The trade union does not have to provide the names of individual members.

Trade union officers are protected against dismissal during their terms of office and after leaving office for a period corresponding to half the term of office but no longer than one year.

Dispute Resolution

Working conditions, remuneration, social payments and the rights of employees may be the subject of collective disputes.

If a company does not respond to a trade union’s bargaining proposal within three days, the trade union may initiate a collective dispute. The company is obliged to enter into negotiations immediately to resolve the dispute by reaching an agreement. A strike may not start before 14 days have passed from the day of announcement of the dispute.

Conciliation is an obligatory phase of a collective dispute during which a company and a trade union negotiate. If conciliation fails, the parties are obliged to engage in mediation with assistance from a third party not involved in the dispute.

Once conciliation has ended, trade unions, although they may not strike, can take such actions as working to rule or displaying banners.

If mediation fails, the trade union may initiate a strike. If there is a high chance that an agreement will not be reached, the trade union may initiate a single warning strike, which may not last longer than two hours.

Strikes and Lockouts

A strike is a last resort and as a rule can only be called if conciliation and mediation have failed, a referendum has been held and at least five days have passed from the day the strike was announced. The law does not provide limits for the duration of a strike. Negotiations may be resumed at the request of one of the parties to the dispute.

The striking employees retain their right to all social security benefits and entitlements under the employment relationship, except the right to their salaries. Employees not participating in a strike who are willing to continue working are entitled to remuneration.

Successorship Clauses

In cases where a business is sold or transferred, the existing and the new employer are severally liable for the obligations resulting from the employment relationship that arose before the transfer. Less favorable conditions can only be agreed if they are justified by the employer’s financial situation.

Reference Citations

Right to Organize: Labor Code (as amended) (Polish)

Dispute Resolution: Labor Code (as amended) (Polish)

Successorship Clauses: Labor Code (as amended) (Polish)

Safety, Health and Security

In General

The employer has legal responsibility for work safety and hygiene and a duty to protect the health and life of employees by appropriate use and application of scientific and technological means.

Workplace Safety and Health

Health and safety regulations are mandatory and cannot be suspended by agreement between the company and employees. The Polish Labor Code places a duty on the company to ensure compliance and on the employee to comply with health and safety rules and regulations in the workplace.

The employer has legal responsibility for work safety and hygiene and a duty to protect the health and life of employees by appropriate use and application of scientific and technological means.

In addition to initial examinations of a candidate for a job, medical checkups should be undertaken periodically. These periods are set forth in the regulations of the Ministry of Health. For example, employees working in noisy conditions should have a general examination once every four years and additional audiometric and otolaryngological examinations once every three years but during the first three years of work once a year. The medical practitioner may instruct individual employees to undergo medical checkups more often than the minimum. These examinations are conducted at the expense of the company.

The company must also provide employees with free personal protective equipment when hazardous working conditions require.

Drug and Alcohol Use

Drinking alcohol or using drugs during work time is regarded as a serious violation of an employee’s basic duties and justifies termination without notice.

Sobriety Checks: An employer can set up a sobriety-control program to ensure the health and safety of employees and others or the protection of property. Amendments to the Labor Code establish, among other things, the rules and procedures, including notification requirements to employees, for conducting workplace-sobriety inspections checking for the presence of alcohol and substances having a similar effect to alcohol.

Smoking in Poland is forbidden in public places such as restaurants, theatres, and workplaces.

Reference Citations

Workplace Safety and Health: Labor Code (as amended) (Polish)

Drug and Alcohol Use: Labor Code (as amended) (Polish)

Termination

Termination by Employer

The contract of employment may be terminated by mutual agreement of the parties or by a unilateral declaration of either party with or without notice. An employment contract expires automatically after completion of the task or period for which it was established.

Statutory notice periods prescribed by Polish law vary depending on the total length of service with the employer as follows:

• less than six months: two weeks;
• at least six months but less than three years: one month; and
• at least three years: three months.

If an employee refuses to accept dismissal on the basis of a mutual termination agreement, the company may terminate the employment contract with notice.

Termination of the contract without notice is possible if an employee:

• seriously violates basic employment duties,
• commits an offense that makes further employment impossible, or
• loses a licence necessary for the performance of employment duties.

The employer may also terminate an employee absent from work for more than 272 consecutive days or who refuses to accept a reasonable change in conditions of employment or remuneration.

Termination of an indefinite employment contract must have sufficient justification, which must be cited in a letter of dismissal. In addition, all summary dismissals (without notice) require explanation of the reasons in the letter served on the employee concerned.

Under Polish law, a notice of termination cannot be served during certain periods of employment when an employee enjoys special protection against dismissal. In particular, the letter of dismissal cannot be delivered to an employee who is absent from work due to:

• holiday leave;
• maternity, paternity or other parental leave;
• special events leave;
• family emergency leave or
• incapacity to work caused by illness unless the duration of the absence allows the company to terminate the employment contract without notice.

In addition, the employee enjoys special protection against dismissal during the following periods:

• when the employee is due to qualify for retirement in less than four years starting from the date of receipt of the letter,
• when the employee is appointed as trade union officer or is designated by a trade union organization as an individual protected against termination and
• when the employee is appointed to the works council.

Employees have 21 days to bring an action against the termination of employment.

Termination by Employee

An employee may resign, usually in writing. Except when serious cause justifies immediate termination (constructive dismissal), an employee must give advance notice of resignation. An employee may terminate the contract without notice, in particular, if forced to work under hazardous conditions or if the employer refuses to transfer the employee to another position despite medical prescription.

Plant Closings and Mass Layoffs

Under the Act on Group Redundancies, strict collective redundancy procedures must be followed by a company that wishes to make a reduction in its workforce. A layoff is considered a collective redundancy if a certain threshold number of employees are dismissed:

• 10 in employers with 20 to 99 employees,
• 10 percent in employers with 100 to 299 employees and
• 30 workers in employers with 300 or more employees.

In general, the group redundancy procedure applies when about 10 percent or more of the workforce is to be dismissed during a period not exceeding 30 days. The act provides for different thresholds depending on the workforce size. For example, for companies employing more than 300 workers, the threshold is 30 employees affected.

Management must inform the trade unions or other employee representatives and the competent labor office of the proposed reduction in workforce, the number of employees to be affected and the reasons for the redundancy and must consult the employee representative bodies. Redundancies may become effective not earlier than 30 days thereafter.

The group redundancies procedure must be conducted based on the conditions agreed with the trade unions or introduced unilaterally by the company (depending on the case). The competent labor office must be informed of these conditions as well.

If the company plans to make 50 or more employees redundant within a three-month period, it must agree to take part in an outplacement program with a competent labor office. The program must be co-financed by the company.

Payment on Termination

On leaving the company, each employee receives a cash payment in lieu of any unused holiday leave. An employee may not forfeit the right to this cash equivalent. Alternatively, the employee may be instructed to use up holiday leave entitlement during the notice period before departure from the company.

All employees made redundant must receive severance pay. The amount of this compensation depends on length of service with the current company. The maximum severance pay is three months’ average earnings for employees who have been employed for eight years or more, although this may not exceed 15 times the national minimum wage.

Unemployment Insurance

Poland’s unemployment insurance program covers individuals who have been employed in Poland or in other European Union member states for at least 365 days in the last 18 months and have earned at least the minimum wage during this period. Employers pay 2.45 percent of payroll to help finance the program.

Reference Citations

Termination by Employer: Labor Code (as amended) (Polish)

Plant Closings and Mass Layoffs: Law on Termination of Employment Contracts for Reasons Not Attributable to Employees, 2003, No. 90, arts. 1-5 (Polish)

Payment on Termination: Labor Code (as amended) (Polish)

Personal Taxes

Residency Requirements

Individuals are considered residents for tax purposes if their center of vital (economic or personal) interest is in Poland or if they spend more than 183 days in a tax year in the country.

Taxable Income

Residents are subject to taxation on their worldwide income, nonresidents only on income earned in Poland. Taxable income includes all remuneration received from an employer.

Tax Rates

Personal income taxes in Poland are progressively assessed, with one rate applying up to a threshold amount of income and another rate applying for income in excess of the threshold amount.

Employers must pay 9.76 percent of their employees’ salary to the Pension Fund and 6.5 percent to the Disability Fund. Employees must contribute 9.76 percent of their salary to the Pension Fund and 1.5 percent to the Disability Fund.

Reference Citations

Residency Requirements: Income Tax Act, 1991, art. 3 (Polish)

Web References

In Polish.

Law and Regulation

Income Tax Act

Labor Code