Human Capital and labour law

The main, selected steps, related to employment of an individual by a Polish employer are as follows: 

1. An employer and an employee shall execute the employment contract in writing with at least minimum statutory regulated content.
2. Each new employee shall be, in principle, subject to an initial medical examination. 
3. An employer must ensure its employee is familiar with the provisions and principles of health and safety at work concerning the work he/she performs and all required safety at work regulations shall be observed/required steps related performed. In principle, the employer must ensure that the employee undertakes initial training in health and safety at work prior to commencement of work. 
4. An employer must inform an employee, in writing, not later than within 7 days of the date of concluding the employment contract about: 
   • the standard daily and weekly working time
   • the frequency of the remuneration payments, 
   • the length of annual leave to which an employee is entitled, 
   • the length of the notice period binding upon the termination of the employee's employment contract, 
   • any collective labour agreement that covers an employee, 
   • and, if the employer is not obliged to establish work regulations – additionally about the night-time hours, the place, date and frequency of remuneration payments, and the adopted procedure of confirming the arrival and presence of employees at work, as well as the procedure of excusing their absence from work.

Maximum working time and minimum rest periods - in general, a full-time work week of 5 days must not exceed on average more than 8 hours per day and 40 hours in total.

Annual leaves - a duty to give each employee paid holiday leave. Depending on the length of service, the total annual leave of the employee shall be 20 or 26 days. 

The employee may not waive his/her right to the annual leave. The unused holiday is transferred to a subsequent calendar year and should be used by the employee before 30 September of such year.

National Minimum Wage - an obligation to pay employees at least the minimum wage which is a fixed monthly rate and is increased annually (as of 1 January 2021 PLN 2,800 gross, being an equivalent of approx. EUR 640 gross).

The limitation of the number of temporary employment contracts that can be offered to an employee (up to three fixed term contracts within a period not exceeding 33 months in total) - only limited exceptions apply.

A general duty to provide a safe place of work, safe access and safe work systems, supported by related obligations such as consulting with employees or their representatives on health and safety issues and providing staff with certain health and safety information.

An obligation not to discriminate against employees, including job applicants, on a range of grounds, covering i.a. regardless of sex, age, disability, race, religion, nationality, political beliefs, trade union membership, ethnic origin, creed, sexual orientation, as well as regardless of employment for a definite or indefinite period of time or full-time or part-time employment.

Rules for termination of employment. An employment relationship may be ceased:

• by mutual agreement,
• by one party with notice period being preserved,
• by one party without notice period (possible exclusively only in the cases specified in the Labour Code, e.g. disciplinary dismissal or the employer’s fault).

Termination notice of the employment contract must be made in writing in Polish language. Additionally, employers are obliged to provide grounds justifying the termination when terminating:

• any type of employment contract without notice or
• employment contract for an indefinite period with notice.

Sick pay. Generally for the first 33 calendar days of sick leave in a given calendar year (for employees over 50 years of age - for 14 calendar days) the employee receives a sickness allowance financed by the employer at a rate of 80% (in limited case - 100%) of the sickness benefit basis . After 33 days (or 14 days as appropriate) of sickness absence the employee receives the sickness allowance at the same percentage of the sickness benefit basis for each day of absence covered by the Social Security Authority from the Sickness Insurance of Social Security Coverage. 

Various benefits for the employee in connection with childbirth, including the right to at least 20 weeks of pregnancy and maternity leave, as well as 32 weeks of leave for parents. The total length of maternity leave and leave for parents increases depending on how many children were born and equals to:

• 65 weeks (31+34), in case of 2 children;
• 67 weeks (33+34), in case of 3 children, etc.

Taxation

Poland has a relatively complex fiscal system. This is supported by the global Paying Taxes study: PwC annually assesses the ease with which tax obligations can be met. Paying Taxes compares the tax burden and compliance obligations of 190 countries around the world. Paying Taxes 2020 shows that Poland ranks 77 overall. This is caused by complicated legislation which is often amended, however the legislators are making lots of efforts to use technology to facilitate tax compliance. Please find more information in our Paying Taxes study.

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