Poland – Employer of Record

AtoZ Serwis Plus Poland offers record services to clients who wish to recruit and handle payroll workers without first setting up a branch or affiliate in Poland. Your applicant is recruited in compliance with local labour laws through AtoZ Serwis Plus Poland Skilled Employer Association (PEO) and can be onboarded in days instead of the normal months.The person is delegated to serve on your staff, working on behalf of your organisation precisely as if he or she was your employee to satisfy your specifications in the region.

Table of Contents

• Hiring, Negotiating and Doing Business in Poland
• Employment Contracts in Poland
• Contract Types (Length of Service)
• Working Hours in Poland
• Vacation Leave in Poland
• Poland Holidays
• Sick Leave in Poland
• Maternity / Paternity Leave in Poland
• Termination/Severance in Poland
• Notice Periods
• Taxes in Poland
• Why AtoZ Serwis Plus Poland

Our holistic solution and AtoZ Serwis Plus Poland PEO service allow clients to run payroll in Poland while problems of HR services, tax, and enforcement management are lifted from their shoulders to ours. As an expert at AtoZ Serwis Plus Poland, we handle best practises in work arrangements, contractual and industry standard compensation and employee costs, as well as severance and firing where appropriate.In Poland, we also keep you aware of changes to local work rules.

A new hire is more effective, has a great recruitment experience, and is 100% committed to your team. You'll have peace of mind ensuring that for any recruit, you have a team of devoted career experts guiding you. AtoZ Serwis Plus Poland enables you to easily and painlessly leverage the abilities of the finest individuals in more than 5 countries across Europe.

Hiring, Negotiating and Doing Business in Poland

With a couple of primary variations or nuances, the recruiting and on-boarding process in Poland is not unlike the rest of the European Union. Poland has been a member state of the EU since 2004, but it is not yet part of the Monetary Union of the EU. The local currency, however, is indeed the Polish Zloty (PLN).

It might be helpful to bear the following in mind when agreeing the terms of an employment contract with an employee in Poland:

Employment Contracts in Poland

Employment contracts must be signed and registered no less than 7 days before employment starts with the Social Security Bureau. In addition to signed jobs, registering with the authorities includes a series of unique declarations and forms. Contracts must be written in Polish or English, with at least the following elements:

1. Relevant parties to the agreement (i.e. an employer and an employee)
2. Length of contract (see below for Contract Types)
3. Date of execution (i.e. when it was signed)
4. Employment terms and conditions:

• Type of work (i.e. duties to be performed)
• Place of work (i.e. work office or home office)
• Remuneration details (including variable compensation/bonus – treated as additional salary and taxable just as base income)
• Type of employment (if the work is to be performed on a full-time or a part-time basis)
• Date of commencement (i.e. start date)

Contract Types (Length of Service)

There are 3 possible types of employment contracts with respect to contract length:

• Short-term (“contract for trial”), which can consist entirely of a probationary period (up to 3 months)
• Fixed-term for up to 33 months (renewable up to 3 times)
• Indefinite (“open-ended”)

(both fixed-term and the indefinite contracts may also include probationary periods)

Additionally, an employer must inform the employee, in writing and within 7 days of the date of contract execution, about the following details (if they are not already in the contract):

• Working hours
• Frequency of payment
• Annual leave entitlements

Notice period for termination

Working Hours in Poland

The usual hours of service are 8 hours a day and 40 hours a week. Anything that extends the accepted working hours will be deemed "overtime" and the supervisor must authorise it. Labor law states that overtime does not exceed 150 hours in any given year.Overtime is paid on the basis of an allowance plan (50-100 percent of the gross compensation on top of the daily pay, depending on where the overtime took place) or with extended leave time (1:1).

Vacation Leave in Poland

Employees are therefore entitled to 20-26 days of paid vacation or holiday (depending on tenure). Dependent in all periods of work and schooling, tenure is called (not just current employer). Workers with a term of fewer than 10 years are entitled to 20 days of leave, while employees with a tenure of 10 years or longer are entitled to 26 days.It may be carried over to the next calendar year if leave is not taken (there is a carryover period of up to 3 years). This leave allowance provides four 'on-demand' sick days.

Poland Holidays

Poland has 13 public holidays:

• New Year’s Day
• Epiphany
• Easter Sunday
• Easter Monday
• Labour Day/May Day
• Constitution Day
• Corpus Christi
• Assumption Day
• All Saints’ Day
• Independence Day
• Christmas Day
• Boxing Day

Sick Leave in Poland

Employees, as ordered by a doctor, are also entitled to extra 'certified' paid sick leave for long-term diseases (i.e. it requires a formal statement from a doctor). The contractor owes up to 33 days of sickness in this situation (anything additional is paid for by the Social Security Bureau). 

Maternity / Paternity Leave in Poland

In Poland, the Social Security Bureau (ZUS) accounts for maternity and paternity leave:

The number of children born at one birth depends on the duration of maternity leave. The maximum period is 37 weeks in the case of giving birth to five or more children, while it is 20 weeks in the case of giving birth to only one child. The female employee is allowed to waive the remaining portion of the leave after having taken at least 14 weeks of maternity leave after pregnancy. In this scenario, a male employee raising the child needs to use the remaining section of the maternity leave.

A male employee is allowed to take 2 weeks of paternity leave before the child completes 24 months of age. All may be taken at once or in two parts (each of the part must be at least a week).

An employee is often entitled to paternity leave after having taken maternity leave for a period of 32 weeks (in the case of giving birth to one child) or 34 weeks (in the case of giving birth to one child) (in the event of giving two or more children). Both parents are entitled to, and can use, parental leave at the same time. In such a case, the cumulative term of the leave does not surpass the quantities alluded to above (32 or 34 weeks).

An employee who has been working for a period of 6 months shall have the right to take unpaid childcare leave of not more than 36 months. Before the infant hits the age of 6, the leave is given.

Termination/Severance in Poland

Employment contracts may always be terminated, with no penalty, by mutual consent between the employer and employee.

• Indefinite contracts are tougher to cancel because they require grounds for termination and reasoning (these reasons may be challenged by the employee in labour court, if the employee does not agree with them)
• Just adequate notice is needed for short-term and fixed-term contracts (reason and justification are not required)
• Notice periods are based on the duration of operation (see Notice Periods below)

Notice Periods

Each type of contract may be terminated with proper notice:

Required notice for short-term contracts (up to 3 months):

• 3 working days if the probationary period does not exceed 2 weeks
• 1 week if the probationary period is longer that 2 weeks
• 2 weeks if the probationary period is 3 months

Required notice for fixed-term and indefinite contracts:

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

It is important to note that the employer can only terminate by giving notice. Paying an indemnity in lieu of notice is not permitted.

Note

The employer may shorten the 3-month notice (to no less than 1 month) only in instances of bankruptcy or liquidation. In such cases, the employee still retains the right to compensation equal to the remuneration for the remaining part of the full notice period (‘garden leave’).

Additionally, it is important to note that, in scenarios where a termination is challenged by the employee (typically, this would only occur in the case of an indefinite contract), the labor court would determine the outcome (possibly nullifying the termination and reinstating employment, or granting additional settlements).

Taxes in Poland

Employees must be registered with the Social Security Bureau within 7 days before the commencement of work. The Polish social security system includes the following:

• retirement insurance
• medical insurance for general sickness
• maternity/paternity insurance
• disability insurance
• work accident insurance
• maternity/paternity insurance
• death/funeral insurance

The employer’s social contribution cost may be as high as 18% of the employee’s monthly gross remuneration. The employee’s social contributions total approximately 14% of monthly gross remuneration.

Additionally, there is an annual cap on the value of pension and disability contributions (by the employer and employee collectively). In 2018, this total amount was set at 133,290.00 PLN.

The employer must pay a mandatory contribution of 2.45% of employee’s monthly gross pay to the ‘Labor Fund’ and an additional 0.1% to the employee ‘Guaranteed Benefits Fund.’ Both are related to unemployment benefits and are separate from the Social Security Bureau system.

Note

While supplementary (i.e. private) health insurance benefits are not compulsory, they have become more common in recent years (particularly for senior personnel in larger cities). If the employee requests such benefits and the employer chooses to provide them, it can be facilitated in 1 of 2 ways; by combining the supplementary insurance policy with the provisioning of the (mandatory) preventative medical examination (see below for Preventative Medical Examinations) under a single contract with an Occupational Medical Center of choice, or the employer may offer the employee an allowance toward a private insurance policy (150-300 PLN per month is recommended, depending on the medical center).

It is important to note that the additional medical insurance is considered income and is, therefore, subject to normal social contribution payments and tax.

Preventative Medical Examinations (REQUIRED)

Before beginning work, all workers are expected to take a preventive medical test to ensure that they are fit enough to conduct their activities at work (a certificate will be issued by the doctor). The employer must promote this test, i.e. pay for and order into a structured "referral" procedure. These tests are tailored to a particular trade and are administered by qualified physicians. Of these medical centres, the most famous are: 1) Medicover, 2) Lux Med and 3) Enel-Med. However, these tests can also be performed by certified occupational medicine physicians in traditional medical centres across the world.If the employer wants to hire a greater number of workers (>10), it is advised that the employer sign a contract with one of these occupational health centres (often a more cost-effective and efficient approach). Although certain hospital facilities will ask the employer for a contract, it is normally not a prerequisite. 

The cost of the preventive medical evaluation is between PLN 120-500 (per worker) which depends on the testing requested (how many) and the number of specialists involved (e.g an eye specialist for an employee who works with a computer).

Occupational Safety and Health Training (REQUIRED)

Before beginning work, all workers are also expected to attend occupational safety and health training to ensure that 1) they are knowledgeable of general regulations and guidance on workplace protection and 2) they receive business and job-specific safety orders (i.e. work health conditions, risks and safety requirements).There are 2 aspects of the complete 'occupational safety preparation' curriculum, which are generally referred to as 'general training' and 'toolbox talk:'

• ‘General training’ must be conducted by a specialized company that is certified in fundamental provisions of workplace health and safety as part of wider Polish labor code.
• The ‘Toolbox talk’ piece can be performed by an authorized company (internal) representative who has in-depth knowledge about the job and what is needed to do it safely; the overall environment, its health risks and the tools needed to minimize them.

The estimated cost of a complete occupational safety and training program is between 90-120 PLN (per person) and no contract with the providing company is needed.

It is important to note that all employees must confirm, in writing, that they are familiar with the principles and provisions of health and safety at work.

Why AtoZ Serwis Plus Poland

It is time-consuming, costly and complicated to create a branch office or affiliate in Poland to engage a small team. There are good workplace rights in Polish labour law, which require great attention to detail and an appreciation of local best practises. AtoZ Serwis Plus makes expansion into Poland painless and quick. We will help you attract your candidate of choice, monitor HR and payroll matters, And ensuring that, without the pressure of setting up an international branch office or affiliate, you comply with local rules. Our Poland PEO and AtoZ Serwis Plus Poland Employer of Record solution gives you peace of mind to be able to concentrate on running your company.

Please contact us if you would like to explore how AtoZ Serwis Plus Poland will have a streamlined employee leasing or PEO solution for employee recruitment in Poland.