Poland PEO & Employer of Record

Expanding your business into new international markets presents exciting opportunities for growth and diversification. Poland, with its robust economy, strategic location in Central Europe, and a skilled workforce of approximately 38 million people, stands out as an increasingly attractive destination for global businesses. However, the traditional route of establishing a legal entity in Poland can often be a complex, time-consuming, and expensive undertaking. This is where WeHireGlobally steps in, offering a streamlined and cost-effective solution to help you tap into the Polish talent pool swiftly and efficiently.

Traditionally, companies aiming to hire employees in Poland would typically need to navigate the intricacies of setting up a local subsidiary or branch office. This process involves considerable paperwork, legal hurdles, and financial investments, potentially delaying your market entry and diverting crucial resources away from your core business activities.

WeHireGlobally: Your Fast Track to the Polish Workforce

With WeHireGlobally, you can bypass the lengthy and complex process of establishing a legal entity in Poland. Our innovative approach allows you to commence operations and onboard talent in Poland within a matter of days, providing a significant advantage in today’s fast-paced global market. We empower you to focus on your core business objectives while we handle the complexities of local employment.

How WeHireGlobally Facilitates Your Entry into Poland:

Through our comprehensive Employer of Record (EOR) solution in Poland, WeHireGlobally acts as the legal employer of your chosen workforce. This means we handle all the necessary HR and compliance aspects, including:

• Hiring and Onboarding: We manage the recruitment and onboarding process in full compliance with Polish labor laws.
• Payroll Management: We take care of all aspects of payroll processing, ensuring accurate and timely payments to your employees in Polish złoty (PLN), while adhering to all local tax regulations.
• Compliance with Polish Labor Laws: We ensure that all employment practices and contracts are fully compliant with the relevant Polish legislation, mitigating any potential legal risks.
• Benefits Administration: We can manage employee benefits in accordance with Polish standards and your company’s requirements.

While WeHireGlobally acts as the legal employer, you retain complete operational control over your team in Poland. Your employees work exclusively for your business, contributing directly to your projects and goals. This model provides a seamless and efficient way to build your presence in Poland without the traditional burdens of international expansion.

Poland: A Land of Opportunity for Global Businesses

Poland, situated in the heart of Central Europe, offers a compelling blend of economic stability, a large and skilled workforce, and a strategic geographical location. Divided into 16 administrative provinces, Poland boasts a temperate climate and a rich cultural heritage.

Key Facts About Poland:

• Population: Approximately 38 million people, making it the sixth most populous country in Europe.
• Land Area: 312,679 square kilometers.
• Capital City: Warsaw, a vibrant economic and cultural hub.
• Local Currency: Polish złoty (PLN).
• GDP per capita: Approximately $35,651 (USD).
• GDP: Approximately $1.353 trillion (USD).

Beyond these statistics, Poland offers a dynamic business environment, a growing economy, and a strong talent pool across various sectors. Major cities like Kraków, Łódź, Wrocław, Poznań, Gdańsk, and Szczecin serve as key economic centers, attracting both domestic and international businesses.

Navigating Hiring, Negotiation, and Business Practices in Poland

Understanding the local nuances of hiring, negotiation, and general business practices is crucial for success in the Polish market. WeHireGlobally provides invaluable support in navigating these aspects, ensuring your operations run smoothly and efficiently.

The Mandatory Requirement of a Written Employment Contract in Poland

Polish labor law mandates that every foreign national seeking employment in Poland must have a written employment contract with their employer. This legal requirement is essential for safeguarding the labor rights and guarantees of the employee. It’s important to note that Polish law recognizes two primary types of employment contracts:

• Fixed-Term Contract (Umowa o Pracę na Czas Określony): This type of contract has a specified duration and is typically used for project-based work or temporary assignments. Polish law sets limitations on the number and duration of successive fixed-term contracts with the same employee.
• Indefinite Contract (Umowa o Pracę na Czas Nieokreślony): This is the standard type of employment contract in Poland, offering long-term employment with no specified end date.

The provisions and protections afforded by Polish Labor Law apply exclusively to individuals who have signed a formal employment agreement. WeHireGlobally ensures that all employment contracts drafted for your employees in Poland are legally sound, compliant with local regulations, and clearly outline the terms and conditions of employment.

Diverse Forms of Employee Engagement in Poland

In Poland, businesses can engage individuals to perform work under various legal frameworks. Understanding these different forms is crucial for choosing the most appropriate model for your specific needs. The primary types of engagement include:

• Employment Contract (Umowa o Pracę): As mentioned earlier, this is the most common form of engagement, governed by the Polish Labor Law (Kodeks Pracy). Employment contracts provide employees with a comprehensive set of rights and benefits, including paid holidays, severance pay in certain situations, maternity and paternity leave, and social security contributions. This type of contract establishes a formal employer-employee relationship with clear obligations for both parties.
• Civil Agreements (Umowy Cywilnoprawne): These agreements fall under the Polish Civil Code (Kodeks Cywilny) and offer more flexibility compared to employment contracts. However, they typically provide fewer benefits and less protection to the individual performing the work. Common types of civil agreements include:
  • Contract of Mandate (Umowa Zlecenia): Under this agreement, the contractor undertakes to perform a specific task or series of tasks for the principal. While it offers flexibility, it generally does not include benefits like paid holidays or sick leave unless specifically stipulated in the contract.
  • Specified Task/Work Performance Contract (Umowa o Dzieło): This type of contract focuses on the completion of a specific piece of work or deliverable. It is often used for freelance or project-based engagements where the emphasis is on the final outcome rather than the ongoing relationship. The performer is generally not subject to the direct supervision of the orderer.
  • Contract of Management (Umowa o Zarządzanie): This type of agreement outlines the duties and responsibilities of a manager or director in performing their tasks. While it’s not explicitly regulated as a separate category in the Civil Code, it draws principles from the contract of mandate and often includes specific clauses related to the manager’s authority and accountability.

WeHireGlobally can guide you in determining the most suitable form of engagement for your workforce in Poland, ensuring compliance with all relevant legal requirements and helping you attract and retain top talent.

The Strategic Advantages of Partnering with WeHireGlobally for Your Polish Expansion

Choosing WeHireGlobally as your Employer of Record in Poland offers a multitude of strategic advantages:

• Accelerated Market Entry: Begin hiring and operating in Poland within days, significantly reducing your time to market compared to traditional expansion methods.
• Significant Cost Savings: Eliminate the substantial expenses associated with establishing and maintaining a local legal entity, including registration fees, legal counsel, and ongoing administrative overhead.
• Expertise in Polish Labor Law: Benefit from our in-depth knowledge and experience with the intricacies of Polish labor legislation, ensuring full compliance and minimizing the risk of legal complications.
• Streamlined HR and Payroll Processes: We handle all aspects of HR and payroll administration, freeing up your internal resources to focus on your core business strategies and growth initiatives.
• Reduced Administrative Burden: Outsource complex administrative tasks related to employment to WeHireGlobally, allowing your team to concentrate on operational excellence and business development.
• Enhanced Flexibility and Scalability: Easily scale your workforce in Poland up or down as your business needs evolve, without the complexities associated with managing a local entity.
• Mitigation of Employment Risks: By acting as the legal employer, WeHireGlobally assumes certain employment-related risks, providing you with added peace of mind.
• Access to Local HR Expertise: Our team includes local HR professionals who possess a deep understanding of the Polish employment landscape and can provide valuable insights and support.

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.