Poland

Poland PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Poland to companies willing to enter the Polish market or hire local/expat employees in this country.

A practical approach requires establishing a subsidiary in Poland.  Whereas our solution allows you to start the operations in Poland within days hence save time and expenses.  WeHG would hire candidates on your behalf when you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Poland fast facts

Population, million: 38

Land area: 312,679 km2

Capital: Warsaw

Local currency: Polish złoty (PLN)

GDP per capita:$ 35,651

GDP in currency:$ 1.353 trillion

Poland, located in Central Europe, is a country divided into 16 provinces (subdivisions). As a common thing across the Eastern-European region, the climate in Poland is temperate. The country covers an area of 312,679 square kilometers with a population of 38 million people. Poland takes sixth place amongst the most populous European countries. Warsaw is the capital and one of the biggest Polish cities. The list of large cities in Poland additionally includes: Kraków, Łódź, Wrocław, Poznań, Gdańsk, and Szczecin.

Hiring, Negotiating and Doing Business in Poland

Necessity of written employment contract

For every foreigner who attempts to start working in Poland, it is obligatory to sign the employment contract/agreement with the employer to keep his/her labor rights and guarantees. It’s necessary to know that there are two types of contracts: fix-term and undefined. The provisions provided by the Polish Law apply only to those workers who signed the employment agreement.

Different forms of engagement: employment, contracting, work with private entrepreneur

In Poland, work can be performed under such types of employment: based on civil agreements or employment contracts. Employment contracts are based on the Labor Law and provide employees with more benefits that are absent on the Civil contracts, such as paid holidays, severance payment, maternity/paternity leave, etc. On the other hand, Civil contracts include different types of work performances that are divided into these options: contract of mandate (when a contractor undertakes the mandatory to complete a certain task), specified task/work performance (it’s important to complete a certain task; a sort of a freelance type of employment when a performer isn’t subordinated by the orderer), contract of management (specifies the duties of a manager on task performances and is not separately regulated by the Civil Code).

Poland Employment Contract

Types of employment agreements

Charts 1 - Poland

Poland working hours

As a rule, the number of working hours cannot exceed eight hours a day and an average of 40 hours per week in an average five-day working week, over the adopted reference period of four months. Under certain conditions, daily working hours can be extended and balanced by shorter daily working time on other days or by days off.

Overtime

The maximum amount of overtime hours per year is 150 hours. Under some circumstances, if overtime is defined by the collective agreement, for example, the limit can be changed to a higher one. In such a case, the limit of overtime for a week shouldn’t exceed 48 hours.

Vacation leave in Poland

The duration of a minimum vacation is from 20 to 26 days per year, and, the duration is regulated by the employee’s working record:

Charts 2 - Poland

A calculated employment record  includes education (for example, graduation from university is treated as eight years’ employment). Since the beginning of their first employment, employees acquire 1/12 of the statutory holiday entitlement monthly. For a part-time employment vacation is calculated in proportion to their working shifts.

Poland Maternity Leave

Paid maternity leave calculations:

  • 20 weeks – one child
  • 31 weeks  – twins
  • 33 weeks – triplets
  • 35 weeks – quadruplets
  • 37 weeks – quintuplets or more

Polish Severance Laws

There are 3 methods of terminating employment agreement in Poland:

  • termination by mutual consent
  • termination with notice
  • termination without notice

Notice period

In case of agreement for an indefinite period, the employer’s notice of termination should state the reason justifying the termination. The law in Poland does not provide the list of possible reasons, but according to Polish judicature, the reason should be real, concrete and understandable for employees. The termination notice period depends on the period of employment. Notice periods for definite and indefinite period agreements are:

Charts 3 - Poland

Poland Tax

During employment (from the beginning date till the termination) every employee is protected by Polish Law and covered by compulsory insurance such as pensions ( old-age, disability),  work accident, sickness, and medical care. An employer is obliged to transfer compulsory insurance contributions on behalf of their employees. The contribution assessment base is a gross pay of an employee. Some compulsory contributions are financed by an employee and some by an employer.

  • Vat Rate – 23%
  • Employee contribution in total – 22,71%
  • Employer contribution in total – from 19,21 to 22,43%

Health Insurance Benefits in Poland

From day 34 (or 15, in the case of employees aged 50 or over) of any illness, employees are entitled to sickness benefit financed by the Social Security Office (ZUS). Sickness benefit is paid by any employer employing over 20 persons. The amount of sickness benefit paid by the employer is then deducted from the social security contributions due from the employer.

Additional Benefits in Poland

Entitlement to time off/paid time off

To prove an employee’s inability to work caused by sickness or injuries, he/she has to provide an employer with a medical certificate. A paid time off caused by the sickness of the employee has a duration of the first 33 days and is paid 80% of their remuneration. In some cases, such as accidents during work performances that caused injuries, sickness during pregnancy or donor procedures,  the total amount can be higher and 100% will be paid.

Paternity rights

Due to Polish Law, the length of paternity leave is 7 days and can be exceeded in future. Moreover, the conditions of paternity leave can be the same as the conditions for maternity leave under several circumstances.

General market practice benefits/additional allowances

Positive economic changes and active growth of Poland in the worldwide economic arena attract foreign companies to start setting up business in this country. As a NATO (since 1999) and European Union (since 2004) member, Poland affords a compliant market for foreign investments and shows one the best economic growth amongst the countries of transition economies gratefully to the liberalization policy held in the 1990s. Such success is noticed by global organizations and institutions, for example, European Union is actively financing the development projects in Poland and provides the country with vital support on this chosen by the country path. According to the Polish Information and Foreign Investment Agency, the country becomes a leader amongst easternEuropean countries in foreign direct investment, that’s why the future prospects of this country are very promising.

Poland Holidays

Polish people traditionally celebrate 13 public holidays each year, including:

  • New Year’s Day 
  • Epiphany
  • Easter Sunday
  • Easter Monday
  • Labour Day
  • Constitution Day
  • Whitsun
  • Corpus Christi
  • Assumption of the Virgin 
  • All Saints’ Day
  • Independence Day 
  • Christmas Day
  • Boxing Day

Take into account that public holidays in Poland are not included in statutory holiday entitlement.

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

FAQ Poland

  • Working hours in Poland

    As a rule, the number of working hours cannot exceed eight hours a day and an average of 40 hours per week in an average five-day working week, over the adopted reference period of four months. Under certain conditions, daily working hours can be extended and balanced by shorter daily working time on other days or by days off.

  • What are the main holidays in Poland?

    • New Year’s Day
    • Epiphany, Easter Sunday
    • Easter Monday
    • Labour Day
    • Constitution Day
    • Whitsun
    • Corpus Christi
    • Assumption of the Virgin
    • All Saints’ Day
    • Independence Day
    • Christmas Day
    • Boxing Day
  • What are payroll taxes in Poland?

    • Vat Rate – 23%
    • Employee contribution in total – 22,71%
    • Employer contribution in total – from 19,21 to 22,43%
  • Hannah Kohl
    Author:
    Hannah Kohl. Head of Customer Success. Has extensive experience in the HR and IT industries. Helped 100+ international clients to achieve their global goals.

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