Poland PEO & Employer of Record

WeHG offers International PEO and global Employer of Record (EOR) services in Poland, helping companies seamlessly expand into the Polish market or hire local and expatriate employees.

Traditionally, entering the Polish market requires establishing a legal entity, which can be time-consuming and costly. With WeHireGlobally, you can bypass this step and start operations in Poland within days, saving valuable time and resources.

Through our solution, we hire employees on your behalf while you retain full operational control of their work. Legally, they become our employees, managed through our local payroll and fully compliant with Polish labor laws, yet they work exclusively for your business.

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

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:

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:

Poland Tax and Employment Guide

Poland offers a structured and employee-friendly tax and social security system, making it a reliable destination for businesses and professionals. Here’s an updated guide to understanding Poland’s tax, payroll, and employment framework.

Taxation and Social Security in Poland

During employment, every employee in Poland is protected by Polish law and covered by compulsory insurance, which includes:

• Pensions (old-age and disability)
• Work accident insurance
• Sickness insurance
• Medical care

Employers are required to transfer these compulsory insurance contributions on behalf of their employees. The contribution assessment base is the employee’s gross pay. Contributions are split between the employer and the employee as follows:

• VAT Rate: 23%
• Employee Contribution: 22.71% (total)
• Employer Contribution: 19.21% to 22.43% (depending on factors such as industry and risk level)

Health Insurance Benefits in Poland

Polish law ensures robust health benefits for employees:

• Sickness Benefits:
  Employees are entitled to sickness benefits starting from:
  • Day 34 of illness (or day 15 for employees aged 50 or older).

For companies employing over 20 people, these benefits are financed by the Social Security Office (ZUS). The employer deducts the cost of sickness benefits from their social security contributions.

Additional Benefits in Poland

Poland’s employment law includes several benefits designed to protect employees during life events:

• Paid Sick Leave:
  Employees unable to work due to sickness or injury are entitled to:

  • 80% of their remuneration for the first 33 days of illness.
  • 100% of their remuneration in specific cases, such as:
    • Work-related accidents.
    • Sickness during pregnancy.
    • Organ or tissue donation procedures.

• Paternity Leave:
  Fathers are entitled to 7 days of paternity leave, with conditions similar to maternity leave in certain situations.

General market practice and Business Opportunities

Poland’s rapidly growing economy makes it an attractive hub for international business. Key factors contributing to this growth include:

• Foreign Investments:
  As a member of NATO (since 1999) and the European Union (since 2004), Poland offers a stable and compliant market. The liberalization policies of the 1990s have propelled the country to the forefront of transition economies.

  • Poland is a leader in foreign direct investment among Eastern European countries, supported by development projects funded by the European Union.

• Economic Prospects:
  Poland’s strategic location, skilled workforce, and robust infrastructure make it a promising destination for business expansion.

Poland Holidays in Poland

Poland celebrates 13 public holidays annually. These holidays are not included in statutory holiday entitlements, so businesses should plan operations accordingly:

1. New Year’s Day (January 1)
2. Epiphany (January 6)
3. Easter Sunday (movable)
4. Easter Monday (movable)
5. Labour Day (May 1)
6. Constitution Day (May 3)
7. Whitsun (movable)
8. Corpus Christi (movable)
9. Assumption of the Virgin Mary (August 15)
10. All Saints’ Day (November 1)
11. Independence Day (November 11)
12. Christmas Day (December 25)
13. Boxing Day (December 26)

Why Partner with WeHireGlobally

WeHireGlobally (WeHG) simplifies employment management for businesses expanding into Poland. Our services include:

• Streamlined Onboarding: Quick and compliant integration of employees into your workforce.
• Payroll Management: Accurate and efficient payroll processing tailored to local laws.
• Tax Filing and Compliance: Ensuring all tax obligations are met on time, reducing risks.
• Comprehensive Benefits Administration: Managing employee compensation and benefits packages.
• Seamless Offboarding: Handling terminations professionally and in compliance with Polish labor laws.

Our Employer of Record (EOR) solution enables businesses to operate internationally without the burden of establishing a legal entity, helping you focus on growth while minimizing costs and risks.

Expand your business into Poland confidently with WeHG’s expertise. Let us handle the complexities while you focus on achieving your goals.

Contact us now to learn how we can support your business.