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Global Employment Law Guide

Poland

(Europe) Firm Wardynski & Partners

Contributors

Updated 28 Feb 2024
What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)?

The employee's employment status in Poland is primarily regulated by the Polish Labour Code (the "PLC"). This defines an employee as a person employed under an employment contract, appointment, election, nomination or cooperative employment contract. By establishing an employment relationship, an employee undertakes to perform work of a specified type for the benefit of an employer and under its supervision, in a place and at the times specified by the employer, whereas the employer undertakes to employ the employee in return for remuneration. Also available are civil law contracts and/or self-employment (sole proprietorship), although employment law does not apply to these contracts and the parties may almost entirely freely decide on all the terms. However, employment contracts cannot be replaced with civil law contracts if working conditions are typical for an employment relationship as described above. An employer, or any person acting on its behalf, which concludes a civil law contract where an employment contract should be concluded is liable to a fine of between PLN 1,000 and PLN 30,000 (approx. EUR 230 to EUR 6,950). Employers may also benefit from work performed by temporary agency workers. They are formally hired (either under an employment contract or civil law contract) by a temporary work agency but perform work for the so-called employer-user on the basis of an agreement executed between the employer-user and the temporary work agency.

Are there different types of employment contracts (for example, fixed-term, indefinite)?

Yes. Polish law provides for two basic types of employment contracts: indefinite and definite terms. Each can be preceded by a contract for a probationary term. Generally, it cannot exceed 3 months, but shorter maximum periods apply where a contract for a probationary term is intended to precede the conclusion of a fixed-term contract of no more than 6 months (then probationary period cannot exceed 1 month) or 12 months (then probationary period cannot exceed 2 months). The maximum duration of employment based on definite term contracts is 33 months and/or of the maximum 3 contracts between the same parties (regardless of breaks between the contracts). However, there are some exceptions from these limitations, which apply to specific cases, such as substitution, seasonal work, term of office on the board, etc.

What requirements need to be met in order for an employment contract to be valid?

An employment contract must include essential aspects to be valid, i.e. the parties, the address of the employer, the contract type, its date and work and pay conditions, in particular, the type of work, place where it will be provided, salary (including specification of its elements), working time and a day of work commencement. In the case of a fixed-term employment contract/contract for a probationary term, it must also include its duration or the day of its expiry. Additionally, a contract for a probationary term should indicate the period for which the parties intend to conclude a fixed-term employment contract, provided that the term is not to exceed 12 months. As for form, employment contracts need to be in writing, with the written signatures of both parties (qualified electronic signatures are also admissible). In relation to a verbal employment contract, the employer is required to hand a new employee a written confirmation of the arrangements made between them before he or she starts work. However, an employment contract is considered valid even if the requirements regarding form are not fulfilled, as long as essential aspects are agreed upon by the parties. But an employer, or any person acting on its behalf, which does not confirm in writing the contract of employment concluded with the employee before permitting them to perform work is liable to a fine of between PLN 1,000 and PLN 30,000 (approx. EUR 230 to EUR 6,950).

Are part-time employees afforded the same rights as full-time employees?

Yes. Conclusion of a contract of employment for part-time work must not result in conditions of work and pay being established that are less favorable for the employee compared with other employees who perform the same or similar work based on full-time employment, provided that remuneration and other work-related benefits must be proportionate to the employee's working time. Also, no discrimination in employment on the grounds of employment on a full-time or part-time basis is allowed.

Can employment contracts be assigned?

No. Under Polish law, an employee cannot assign contractual duties stemming from an employment contract as it is a personal service contract in nature. Change of an employer is possible only in the sense that a company or a part thereof (being an employer) is transferred to another employer (a transfer of an undertaking). However, in such a case, no additional assignment contract is required (see the answer to the next question in this material).

What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern?

Polish law provisions regarding the transfer of undertakings implement the Transfers of Undertakings Directive 2001/23/EC. As a rule, if an establishment or a part thereof is transferred to another employer, the new employer becomes a party to the existing employment relationships by operation of law. In such case, an employee may terminate his employment without notice, upon prior notification 7 days in advance, within 2 months after the date of the transfer. This termination procedure shall have the same effects for an employee as termination of employment by an employer with notice, pursuant to the applicable provisions of labor law. Rules are slightly different for employees who have worked other than under an employment contract.

Both the transferor and the transferee are obliged to inform employees about the transfer.

If there are no trade unions at the establishments, employers must inform their employees in writing about the expected date of the transfer, the reasons for the transfer, the legal, economic and social effects of the transfer for the employees, and about intended acts concerning the employment conditions of employees, and in particular concerning work, remuneration and requalification conditions. This information must be presented at least 30 days prior to the expected date of the transfer.

If there are active trade unions at an establishment, employers shall provide them with the described information. Additionally, if employers plan changes to the employment conditions, they are obliged to negotiate with trade unions. 

If a works council operates at the employer, apart from the aforementioned notification of the employees or trade unions, the employer needs to inform the works council about the transfer and consult them. There is no time limit specified by law, but in practice, the same time limits as for trade unions are applied, i.e. information shall be presented at least 30 days before the transfer. 

If only a part of an undertaking is transferred, the transferor and the transferee are jointly liable in respect of obligations from an employment relationship that arose before the date of the transfer.

The transfer shall not in itself constitute grounds for an employer to terminate an employment relationship. Employees do not have the right to object or block the transfer as such. Also, they are not entitled to any severance pay with regard to the transfer.

Do you have statutory rights for employees on change of control of an employer? If so, please give the statute.

In general, under Polish law, there are no specific statutory rights for employees on the change of control of an employer. But, if there is a works council at the employer and a change of control results in changes in the employment status, structure or actions that may result in significant changes in work organization or basis for employment, such event generally triggers information and consultation obligations towards the works council. There is no time limit specified by law. In practice, the same time limits are applied as for the transfer of an undertaking, i.e. information shall be presented at least 30 days before the change of control of an employer. 

In the circumstances described above, the employer shall at their request also inform trade unions (if any). Such information shall be presented within 30 days from the day of request.

There are no statutory information/consultation obligations in the absence of significant changes in work organization or basis for employment.

In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee?

Employers can terminate (change) work and pay conditions at any time - the provisions on terminating employment contracts apply accordingly. The termination of work and pay conditions is considered effective if new terms and conditions are proposed to an employee in writing. When terminating work and pay conditions specified in the indefinite-term employment contract an employer must state a reason justifying the termination. The reason must be factual, descriptive, and true and must justify the termination of work and pay conditions. 

If the proposals are rejected by the employee, the contract of employment is terminated upon expiry of the notice. Unless the employee rejects the proposal in writing within half of the notice period, those terms and conditions are deemed to be accepted - the proposal should contain an instruction to that effect. If no such instruction is provided, the employee may submit a refusal to accept the proposal by the end of the notice period.

If termination is unjustified or contrary to the PLC provisions, an employee can appeal the termination to a labor court (provisions on the termination of an employment contract with notice apply accordingly). The employee does not have to reject the employer's proposal to exercise this right.

Termination of the current terms and conditions of work and pay is not required when an employee is assigned to work other than as specified in the employment contract for a period not longer than 3 months in a calendar year if justified by the employer's needs unless this reduces the employee's remuneration and is inappropriate to the employee's qualifications.

Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights?

Polish jurisdiction is not an employment-at-will jurisdiction. Generally, an employment contract can be terminated by mutual consent (no specific restrictions apply), with or without notice.

When terminating employment upon notice, statutory notice periods apply depending on the type of contract and seniority (maximum is 3 months). They can be exceptionally shortened in cases enumerated in the PLC. They can also be extended provided that the extension benefits the employee. 

Termination of employment without notice is an exceptional manner of termination. It results in the immediate termination of an employment contract on the day when the termination is served or delivered. 

When terminating any employment, both upon and without notice, an employer must observe a number of requirements. For example, a letter of termination (which always should be in writing, with a wet or qualified electronic signature) of an indefinite-term and a definite-term employment contract must state a reason justifying the termination. The reason must be factual, descriptive, and true and must justify termination.

In addition, Polish law lists exclusively the reasons that can justify termination without notice.

Employer may terminate an employment contract without notice through the fault of the employee: (i) in the event of a grave violation by the employee of the employee’s basic duties; (ii) if the employee commits a crime, while under the employment contract, which prevents further employment of the employee in the occupied job position, if the crime is obvious or has been declared by court in a final judgment; (iii) if the employee, through his fault, loses a license required to perform work in the occupied job position.

In some cases, pre-termination consultations with labor unions at the workplace (if any) are required. 

Employers who employ 20 or more employees and who terminate a contract with an employee for reasons not attributable to an employee are generally obliged to pay severance pay in an amount that depends on an employee's seniority (between one and three months' remuneration). 

Some groups of employees are protected from dismissal, e.g. employees on sick leave (up to certain periods), vacation leave, pregnant employees, employees of pre-retirement age, trade union representatives, etc.

Are there remedies for dismissal without cause or wrongful termination?

Yes. If termination is unjustified or contrary to the PLC provisions an employee can appeal the termination to a labor court within 21 days from termination claiming compensation or reinstatement to work and remuneration for remaining unemployed (usually, for a limited period). If the term of the definite-term employment contract ended before the court decision was issued, or if reinstatement would be inadvisable due to the short period remaining until the end of that term, the employee is entitled to compensation only. Both the amount of compensation and remuneration are regulated by the Labour Code - as usual, the maximum compensation is up to three months of remuneration.

Are there protections for whistleblowers?

Currently (February 2024), there is no general regulation in place protecting whistleblowers under Polish law. However, certain groups of whistleblowers are protected to some extent under the Act on Countering Money Laundering and Financing of Terrorism of 1 March 2018. Also, under the Banking Law Act of 29 August 1997, banks must have management systems that include procedures for anonymous reporting of infringements of law and ensure to the employees who report infringements protection at least against actions of repressive nature, discrimination, or other types of unfair treatment (implementation of CRD IV). Similar regulations may be found in the Financial Instruments Trading Act of 29 July 2005 and the Investment Funds and Management of Alternative Investment Funds Act of 27 May 2004. Work is pending on a bill on the Liability of Collective Entities for Acts Prohibited under Criminal Law, which is to provide general provisions for protecting whistleblowers. Work is also pending on a bill on the Transparency of Public Life, under which whistleblowers would receive legal protection against termination or modification of the terms of their employment. Additionally, as an EU Member State, Poland is obliged to implement the EU Directive 2019/1937 on the Protection of Persons Reporting on Breaches of Union Law. The deadline for implementation was 17 December 2021. As of February 2024, legislative work on the law is still ongoing and its final form is not yet determined.

Do employees have a right to privacy? If so, what are the remedies for a breach?

Yes. The Polish Constitution grants everyone a right to privacy. Also, one of the principles of Polish labor law is that an employer must respect the dignity and other personal rights of an employee - there is no doubt that this includes the right to privacy. Therefore, an employer may monitor employees and their work and request employees' personal details only within the rules prescribed in the PLC. However, there are no regulations that explicitly apply to employees' rights to privacy infringements. If a breach may be regarded as a serious breach of an employer's basic duties, employees may terminate their employment contracts without notice. If this is found to be justified, the employees will be entitled to compensation specified in the PLC. An employee whose personal interests have been jeopardized may bring an action under the general provisions of the Polish Civil Code, in particular, claim compensation from the employer. Additionally, if the breach relates to personal data, liability will apply as prescribed in the GDPR. Certain cases may also involve a misdemeanor or criminal liability.

Are employees afforded any anti-discrimination protection?

Yes. PLC provisions provide all employees with equal rights in the equal performance of the same duties (which applies in particular to the equal treatment of men and women at work). 

Employees must be treated equally with regard to the establishment and termination of employment, the terms of employment, promotions and access to training to raise their professional qualifications, especially without distinguishing anyone on grounds of sex, age, disability, race, religion, nationality, political beliefs, trade union membership, ethnic origin, denomination, sexual orientation, employment for a definite or indefinite term, or on a full- or part-time basis. Discrimination in employment, in particular on the above-mentioned grounds (the catalog is open), whether direct or indirect (as defined in the PLC) is forbidden. Any person who has suffered discrimination is entitled to compensation at least equal to the statutory minimum wage. The exercise of this right may not constitute a basis for any unfavorable treatment of the employee, and may not place that employee at any disadvantage, in particular, it may not constitute grounds for the employer to terminate the employment. Employers are also statutorily obliged to prevent mobbing and discrimination - an employer's violation of this may be deemed a serious breach of the employer's basic duties which entitle employees to terminate their employment contracts without notice. If this is found to have been justified, the employees will be entitled to compensation of at least the amount of the minimum salary for work.

Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits?

Under the PLC employees are entitled to several statutory rights to leave: vacation leave (20 or 26 days in a year, depending on length of service), sick leave, maternity leave, paternity leave, parental leave, upbringing leave, training leave (at the request or consent of the employer). Employees are also entitled to other specific occasional leave. Some of the mentioned types of leave are paid, some are unpaid, whereas others entitle the employees to an allowance from the Social Security Fund (e.g. maternity allowance).

In the past 12 months (in April 2023) Poland implemented EU Directive 2019/1158 of the European Parliament and of the Council of 20 June 2019 on work-life balance for parents and carers. New occasional breaks from work have been introduced, e.g. force majeure leave of 2 days or 16 hours (with retention of the right to 50% of salary, granted for force majeure in urgent family matters due to illness or accident, if the employee's immediate presence is required) and care leave of 5 days (unpaid, granted to provide personal care or support to a family member or resident in the same household who requires care or support for serious medical reasons). In addition, parental leave has been extended - parents are now entitled to a total of 41 weeks at the birth of one child in one birth. 9 weeks of these 41 weeks are exclusive to the other parent (one employee-parent can therefore not take more than 32 weeks of parental leave). A longer leave (43 weeks) is granted when more than one child is born at the same time and when the child/children born is/are seriously ill (65/67 weeks). There is currently no significant legislative work in progress with regard to leave benefits.

Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity?

Yes, Polish labor law recognizes restrictive covenants - they are known as non-competition agreements. They need to be in writing (with wet signatures) to be valid. Such agreements may be concluded both for the period of employment and for a specified period after the termination of employment. The PLC does not specify an admissible length of the period of post-employment non-competition. But, the period must be specified in the agreement and it should depend on the nature of the particularly important information held by the employee. In practice, a post-employment competition ban is usually for between 3 and 24 months. If the prohibition period is too long and while at the same time providing minimum compensation, this could raise a risk of abuse of law, if not justified by the employee's possession of particularly significant information. The parties may also agree on a geographical scope for the competition prohibition, as well as define the concept of "competitive activity" itself. However, the latter must be directly related to the employer's activity specified in inappropriate laws and articles of incorporation. It may also include future activities planned by the employer.

Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant?

In line with Polish Supreme Court case law, an employee's refusal to sign a non-competition agreement may be a reason for the employer to terminate the employment contract with notice. However, the employer may not have absolute discretion in this (e.g. the employee may refuse to sign a non-competition agreement that has unlawful provisions). The consideration (compensation) for post-employment non-competition must be at least 25 percent of the remuneration that the employee received prior to the termination of the employment in the period equal to the duration of the non-competition agreement. The consideration may be paid in monthly installments. In the event of any disputes, the compensation shall be awarded by a labor court. If the grounds justifying the non-competition agreement have ceased to exist, or if the employer has breached the obligation to pay the consideration, the non-competition agreement becomes invalid. A non-competition agreement for the duration of employment does not require any additional consideration.

Does your jurisdiction require contributions to a pension or retirement scheme?

Yes. As a rule, pension and disability insurance is obligatory for employees in Poland. The employer and employee contribute in equal parts to the obligatory pension and disability fund. In addition, employees may voluntarily participate and contribute to the Employee Pension Scheme ("PPE") or the recently introduced Employee Capital Plan ("PPK").

Are certain benefits mandated by your jurisdiction?

Yes. Apart from the benefits listed in the answer to a question of this material regarding statutory rights to vacation, medical leave and parental leave, several other mandated labor-related benefits exist in Poland, the most important of which are: statutory minimum salary, additional remuneration for overtime (with statutory exceptions), pension insurance, disability insurance, sickness and maternity insurance, insurance against accidents at work and occupational diseases, healthcare insurance, the company social benefits fund (for employers with at least 50 employees). Unemployed persons are entitled to unemployment benefits.

Is it permitted to have a mandatory retirement age in your jurisdiction?

Polish labor and social security law does not have explicit provisions regarding a mandatory retirement age. In line with Polish Supreme Court case law, achieving retirement age and acquiring the right to a pension cannot be the sole reason for an employer to terminate an employment contract. In view of the above and PLC provisions, a mandatory retirement age may be considered discriminatory and, therefore, not admissible under Polish law. But Polish law has specific acts specifying termination of employment for certain groups of employees after the employee has reached a certain age.

Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age?

In general, pensioners may work in retirement. Under certain conditions, it is possible to combine work and receipt of a full pension.

Can an employer make the COVID-19 vaccine mandatory for its employees? Are there exceptions that an employer must make? If an employee simply does not want to get the vaccine (without another reason like disability or religious reason), can an emp...

No. Currently (i.e., as of February 2024), mandatory COVID-19 vaccines are not permissible in Poland. Consequently, there is no law that allows employers of any sector (at the moment even the medical sector) to make the COVID-19 vaccine mandatory for its employees. Thus, employers cannot force their employees to be vaccinated and impose any sanctions (including dismissal or imposing disciplinary penalties) or apply less favorable treatment (e.g. refuse entrance to the office) to employees who decide not to get vaccinated against COVID-19.

Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment?

Unless an employee's contract of employment or other agreement with an employee guarantees him/her the possibility to work from home, the employer may expect the employee to work in the office. Unjustified failure to comply with the request may justify termination of the employee’s employment.

However, in some cases, employees can make binding requests to work remotely. According to the provisions on remote work introduced to the PLC in 2023, all employees can request remote work up to 24 days per calendar year (the employer generally cannot refuse as long as the employee's work can be performed remotely for organizational reasons). Additionally selected groups of employees (e.g. an employee raising a child of up to the age of 4, pregnant employees) can also request to work fully remotely and the employer is generally obliged to agree unless remote work in a specific case is not possible due to the work organization or the type of work performed by the employee. In such cases, therefore, requesting a return to the office is not possible.

Global Employment Law Guide

Poland

(Europe) Firm Wardynski & Partners

Contributors

Updated 28 Feb 2024