Table of Contents
- Introduction and legal basis
- Contract of Employment
- Benefits of employment relationship
Introduction and legal basis
There are many basis under which work can be performed in Poland, various including civil contracts, B2B contracts. But only conducting work under contract of employment gives employee full protection of Polish labour law. Bellow I will show case most important regulations setting basics rules of relationship between employee and employer.
Sources of Polish Labour Law
Before we can begin discussion on provisions of labour law, it is important to understand what are its sources. In contradiction to most of Polish law branches, labour law can originate from state and employer or from cooperation of employer and trade union.
Labour law acts originating from the stat are publicly binding and includes:
- The Labour Code of 26 June 1974;
- Act on National Labour Inspectorate;
- Act on special rules for termination of employment relationships with employees for reasons not related to employees (also known as Act on collective redundancies)
- Act on minimum renumeration for work and other acts regarding rights and obligations of parties of employment relationship.
- collective labour agreements and other collective agreements based on the law, regulations and statutes determining the rights and obligations of the parties to the employment relationship.
Intra-company acts are also source of polish labour law but are not publicly binding. They are only binding on the employer and his employees :
- Workplace regulation;
- Wage regulation;
- Other internal legal acts.
Contract of Employment
Definition of employment contract
It’s a contract in which employee obligates to perform work for benefit of the employer and under his direction, at place and time designated by his and employer obligates to pay renumeration for the work performed.
Every employment contract have to include:
- indication of employee and employer;
- indication of type of contract;
- date of conclusion of the contract;
- working and pay conditions.
Every contract and agreement have to indicate parties between it was concluded.
Types of employment contracts in Poland
There are 3 types of employment contract in Polish law:
- probation period employment contract – probation period can only last up to 3 months and cannot be included in any other employment contract.
- Define period contract – only 3 such contracts might be concluded with single employee and only for period no longer than 33 months. After termination of 3rd define period contract or end of 33rd month of work on basis of such a contract, an employee must be offered permanent employment contract)
- Permanent employment contract – is concluded for indefinite period of time.
Type of contract can be define in title of the contract or in its content. If parties have not stipulated type of contract it is considered to be concluded for indefinite period.
Date of conclusion of the contract is self-explanatory. It’s always better to include this date in employment contract as it can turn out to be useful to define moment of establishment of work relationship.
Working and pay conditions
Contract of employment must include following condition of work and payment:
- Place of work – work can but doesn’t have to be performed in registered office of employer. Employee can work where ever it is accepted by his superiors. Remote work, better known as Home Office wasn’t regulated until 7th April, before this day condition of Home office was freely agreed on by parties of the contract. Now the Labour Code sets out the principles of remote work. You can learn more on that topic further in this article.
- Working hours – the standard working time under Labour code is 8 hours a day, 5 days in the week, 40 hours in week. Legislator gives parties of employment contract limited freedom of exceeding this limits.
- Kind of work – most of the times kind of work will be define by name of position in which the employee will work. It can also be defined by description of activities.
- Renumeration for work – renumeration can and in most cases is paid monthly but it can be paid weekly and even daily. It can be defined with basic month rate or hourly rate. Renumeration should be determinate precisely and understandable. In case when there are intra-company regulations on conditions of payment employment contract can refer to that regulation. Lack of provision regulating enumeration does not render contract null and void. In that case renumeration is determined of the basis of intra-company regulations and in the absence thereof, on basis of a generally applicable provision. The amount of remuneration shall be adequate to the work performed and cannot be less than minimal payment. Minimal payment is determined by the government, as of the day of this article it amounts 3490PLN per month and 22,80 PLN per hour.
Direction of the employer
The economic and organizational risk of employment is always borne by the employer. For this reason, among others, the employees performs work under employer direction. But what “under direction” exactly means?
Employer is entitled to command employee and employee is obliged to follow. This commands can regard performing work as well as organizational issues.
In case of breach of employees obligation they can be subjected to disciplinary liability. Disciplinary punishments and procedure of imposition of this punishments are regulated in Labour Code.
Disciplinary liability of the employee
There are following disciplinary punishments in Labour code:
- Financial penalty
Employer cannot subject an employee to any other punishments than listed in Labour Code.
The employer must notify the employee in writing of the application of the penalty, indicating the nature of the breach of the employee’s duties and the date on which the breach was committed, in addition to that employer must inform employee on the right to loge an appeal agonist application of penalty. If employer does not accept the appeal, employ has a right to apply to the labour court to revoke the penalty.
Disciplinary procedure can be instigated when employee fail to fulfill his basic duties which are:
- respect the working hours established in the workplace;
- respect the work regulations and the order established in the workplace;
- respect health and safety and fire regulations and rules;
- look after the welfare of the workplace;
- protect workplace property;
- keep confidential information the disclosure of which could expose the employer to damage;
- respect the secrecy specified in separate regulations;
- respect the principles of social coexistence in the workplace.
Termination of employment contract.
a.) Termination without notice
In case of serious validation of one or more of aforementioned duties the contract of employment can be terminated without notice resulting in immediate termination of employment. Such a termination can be applied only in 3 cases in mentioned serious infringement of employees duties, employee loses permit required to perform employment related duties and employee commits an offense, which makes further employment impossible, and if the offense is obvious or has been confirmed in the final court ruling.
b.) Termination with notice period.
In other scenarios the contract of employment can be terminated with notice period by each party. Notice periods are defined in Polish labour code as follow:
- notice period of 2 week – employees with job tenure below 6 months;
- notice period of 1 month – employees with tenure exceeding 6 months;
- Notice period of 3 month – employees with job tenure exceeding 3 years.
Above periods cannot be shortened by parties in contract, but can be lengthen.
c.) Mutual termination agreement
Parties of employment relationship can terminate their contract by mutual termination agreement. With this way of termination employee and employer can freely determinate their conditions of termination.
Benefits of employment relationship
Under Polish Labour law employee is entitled to Vacation leave in amount of 20 or 26 days a year. This amount is linked to work seniority which is calculated on basis how long given employee has worked in general without regard where or for whom work was performed. University diplomas add to work seniority. It is important to note that the holyday leave is guaranteed in Polish Labour Code for that reason it cannot be shorten than in code’s provisions and employee cannot resign from his right to holiday leave.
Leave on demand
This 20 or 26 days includes 4 days of leave on demand. This means employee can use 4 days of leave without consulting this with employee or applying for the leave.
Beside basic holyday leave, employees are entitled to other leaves linked to parenthood, pregnancy period and training.
During all above mentioned leaves employee is paid full or partial salary.
In addition to that Polish Labour Code provides unpaid leave. Unpaid leave is suspension of employment. Employer can grant employee unpaid leave for any purpose due to any reason. Duration of unpaid leave is not define in Labour Code because of this it can be freely agreed upon by the parties of employment relationship. It is important to note, that period of unpaid leave is not counted into work seniority and is treated more like a brake in employment relationship than leave.
State mandated insurances
Other employees benefits that are guaranteed by Polish Labour law are following insurances:
- Health care insurance
- Sickness insurance
- Accident insurance
- Disability insurance
- Retirement insurance
All of above are mandatory and are collectively called Social security insurance”
For that reasons contract of employment is most common form of provision of work. Giving the employee stability of renumeration and social security. Contributions for this insurances are calculated and remitted by the employer from employee salary monthly.
Occupational Safety and Health
Above all that employees are entitled to occupational health and safety in workplace. As earlier mentioned this is right and obligation. Employee is entitled to work in safe condition but one is obliged to comply with OHS regulation.
It is mandatory for employers with more than 100 employees to create a OHS service. If the employee employs less than 100 people, he can delegate some of employees to perform the duties of OHS service.
Last but not least employees are entitled to medical examinations both initial and periodical ones.
Stability of contract of employment is one of its main advantage but not the only one. Employees performing work on basis of employment contract are entitled for example to paid holyday leave, sick leave and additional renumeration for overtime hours.
Employers are also protected by labour law, giving them stable and clear rules of cooperation with theirs employees. In addition employees performing work on basis of employment contract are far less frequently point of interest of National Labour Inspection.
If you are interested in starting to work in Poland and want to make sure your employment contract is protecting your rights as an employee or you want to start hiring people in Poland and are looking for help with meeting all the requirements, feel free to contact us. Experts from our law firm in Lodz are at your service, contact us today and let us help you. If you are looking for accounting services for your company, visit our accounting office in Warsaw.