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  is a country located in Central Europe. It is divided into 16 administrative subdivisions, covering an area of 312,679 square kilometres, and has a largely temperate seasonal climate. With a population of approximately 38.5 million people, Poland is the sixth most populous member state of the European Union. Poland’s capital and largest metropolis is Warsaw. Other major cities include Kraków, Łódź, Wrocław, Poznań, Gdańsk, and Szczecin.

 

Hiring, Negotiating and Doing Business in Poland

Necessity of written employment contract

Every foreign citizen who lives in Poland and is going to get a job legally has to conclude an employment contract with the employer.

Under these agreements, contributions for medical, social insurance and tax deductions are paid. All employees, both Polish and foreign nationals, have the same employment rights. The term of employment based ona contract for a specified period is included in the length of service.

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

There are two most popular methods of performing work in Poland: on employment agreement basis and on civil law agreements basis. The provisions of Polish Labour Code and other acts concerning labour law apply only to persons employed with employment agreements. Persons performing work under civil law agreements are legally not considered employees.

By establishing an employment relationship, an employee undertakes to perform work of a specified type for the benefit of an employer and under his supervision, in a place and at the time specified by the employer. At the same time, the employer undertakes to employ the employee in return for remuneration. It should be emphasized that employment under the aforementioned conditions is considered employment on the basis of an employment relationship, regardless of the name of the contract concluded between the parties. Employment contract cannot be replaced with a civil law contract where the performance of work conditions specified above remain intact.

Poland Employment Contract

Types of employment agreements

  • Apprenticeship contract: The purpose of this type of contract is, on the one hand, to enable the employer to check whether the employee and their work is useful to the company. On the other hand, such a contract is supposed to give the employee a chance to make sure that the employer offers suitable working conditions. 
  • Employment contract for a specified task. This form of employment is most common for seasonal work. The crucial characteristic of an employment contract for a specified task is the fact that it defines its termination date by specifying the work which is to be performed. This kind of contract is terminated at the moment when the employee completes assigned work. After an employment contract for a specified task has been terminated, it is possible to conclude subsequent contracts of the same nature. 
  • Fixed-term employment contract. A fixed-term employment contract is the most common limited duration contract. The term of such a contract is defined by specifying: the period for which a contract is concluded, conditions of contract termination or a future event of which occurrence will trigger the expiration of an employment relationship. The law does not define the period for which a contract shall be concluded and, therefore, parties to a contract can choose this period at their own discretion. 
  • Replacement employment contract. A replacement employment contract is a separate type of limited duration contract which is concluded in the situation in which an employee must be replaced during their excused absence. The period for which a contract is concluded can be specified by e.g. providing an exact date or indicating a future event which is bound to take place e.g. expiry of a female employee’s maternity leave. 
  • Employment contract for an indefinite period. An employment contract for an indefinite period is this form of employment which is most beneficial to employees because it guarantees stability of employment as well as protection from contract termination. It also has advantages for an employer, who can build lasting relationships with valuable employees. An employment contract for an indefinite period can be terminated by notice. 

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

As a rule, overtime must not exceed 150 hours per employee in any calendar year. However, a collective work agreement, work rules or, in the absence of these, an employment contract, can provide for a higher overtime limit. However, in this case, employees’ weekly working hours, including overtime, cannot exceed an average of 48 hours a week.

Vacation leave in Poland

Statutory minimum holiday is either 20 or 26 days in a calendar year, depending on the employee’s employment record. Employees who have worked for less than ten years are entitled to 20 days, and employees who have worked for at least ten years are entitled to 26 days. The period based on which holiday entitlement is calculated includes education (for example, graduation from university is treated as eight years’ employment).

An employee taking up their first employment acquires 1/12 of the statutory holiday entitlement after each month of work. The holiday entitlement of part-time employees is calculated in proportion to their working time.

Poland Maternity Leave

In Poland, (paid) maternity leave is 20 weeks if one child is born, 31 weeks for twins, 33 weeks for triplets, 35 weeks for quadruplets and 37 weeks for quintuplets or more. An employee is also entitled to additional maternity leave of two or, in the case of a multiple birth, three weeks. 

Polish Severance Laws

There are 3 methods of terminating employment agreement in Poland:

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

Termination without notice

An employer may terminate an employment agreement without notice:

  • in the event of a severe violation by the employee of the employee’s basic duties
  • if the employee commits an offence, which prevents further employment in the occupied job position – if the offence is obvious or has been declared by a final court sentence
  • if the employee, through his fault, loses a license required to perform work in the occupied job position
  • if an employee is unable to work as a result of an illness

An employee may terminate an employment agreement without notice:

  • if he received a medical certificate declaring a harmful effect of the work performed on the health of the employee, and the employer, within the period determined in the medical certificate, fails to transfer the employee to another position appropriate for his health condition and corresponding to his professional qualifications
  • in the event of severe violation of employer’s basic duties, in such case the employee is entitled to compensation in the amount of remuneration for the notice period.

Notice period

The employment agreements can be terminated by notice given by each party. The termination notice period depends on the period of employment. Notice periods for definite and indefinite period agreements are:

  • 2 weeks if the employee was employed for less than 6 months
  • 1 month if the employee was employed for at least 6 months
  • 3 months if the employee was employed for at least 3 years

In case of agreement for 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 employee.

Poland Tax

Between the start date and the end date of an employment relationship every employee, irrespective of the type of employment contract, is covered by several kinds of compulsory insurance including: old-age pension, disability pension, work accident, sickness and health insurance. 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

Employees who are unable to work due to illness or injury are entitled to time off if they justify their absence from work by providing the employer with a medical certificate.

Entitlement to paid time off

During the first 33 days of incapacity to work due to illness in a calendar year (or, in the case of employees who have reached the age of 50, 14 days), the employer pays the employee 80% of their remuneration. The employer’s internal regulations can provide for a higher amount. In any case, employees are entitled to 100% of their remuneration if incapacity to work is caused by any of the following:

  • An accident at work.
  • Illness during pregnancy.
  • Medical tests carried out on candidates for cell, organ or tissue donors.

Paternity rights

From 2010, a father bringing up a child is entitled to one week’s paternity leave (optional). The length of this leave is to be increased in the future. Additionally, under certain circumstances, a father bringing up a child is entitled to additional leave on the same conditions as maternity leave.

Surrogacy

There are no regulations in Polish law relating to surrogacy. However, under Polish labour law a mother who decides not to raise her child and gives the child up for adoption or sends it to an adoption nursery is not entitled to the part of the maternity leave that falls after the child has been given up. However, the maternity leave after the birth cannot be less than eight weeks during which the employee receives standard maternity benefit.

Parental rights

Childcare leave can be granted for a maximum period of three years until the child is four years old, to employees who have worked for at least six months.

In general, employees are not entitled to remuneration during childcare leave, although those in a difficult financial situation may be granted a family allowance.

General market practice benefits/additional allowances

A country of unique culture, history and geography, Poland increasingly attracts foreign business from all over the world thanks to recent economic changes. The last decade has been very successful for the country’s economic growth and transformation. Joining NATO in 1999 and the European Union in May 2004 have opened the Polish market to foreign investors and development opportunities.

Poland stands out as a success story among transition economies since its liberalisation in 1990, and today it has one of the most successful and fast-growing economies in Central Europe. Its transformation to a democratic, market-oriented country raised Poland’s profile on the international stage. Polish potential was also recognised by the European Union which was generous in funding development, and this in turn attracted foreign investment. Poland is also a leader in Central Europe in foreign direct investment with an inflow of 14 billion dollars (2006, Polish Information and Foreign Investment Agency). Poland’s future looks very promising thanks to the flow of foreign capital into its economy.

Poland Holidays

There are 13 public holidays in each year (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, and Boxing Day). Public holidays 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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