An Overview of Labor Laws in Poland
The legal framework governing labor in Poland has evolved over the years, reflecting the country’s historical and socio-economic changes. Historically, labor laws in Poland can be traced back to the medieval period when a code of law regulated labor relations to some extent, but the modern era of Polish labor law began after World War II. In 1945, following the end of the Second World War, Poland’s adoption of socialism brought about a significant change in the regulation of labor. The Polish Socialist Party implemented a series of labor regulations that aimed to protect workers’ rights and ensure fair labor practices. However, during the communist era, these regulations were often inconsistent and poorly enforced, leading to widespread violations of workers’ rights . With the fall of communism in 1989, Poland underwent a period of transformation, moving from a planned economy to a market-oriented one. As part of this transition, the Polish government embarked on a comprehensive overhaul of its labor laws. In 1996, the Polish Labor Code was enacted, which consolidated and updated the country’s labor regulations. The code outlined the fundamental rights and responsibilities of both employers and employees. It also established guidelines for collective bargaining and workers’ councils. In 2009, in response to European Union regulations, the Polish legislature made significant changes to the Labor Code. The amendments focused on issues such as temporary employment, part-time work, and protection for certain vulnerable groups of employees. They aimed to modernize and streamline the code while also aligning it with EU standards.
Employment Agreements: Basics and Variations
Employment contracts in Poland may be concluded for an indefinite or definite term. They may also be concluded in the form of an employment relationship without an employment contract, if the employee has not been formally employed by the employer to perform work under an employment contract for at least 3 months.
Irrespective of form, all elements of the employment relationship may be considered as terms of the employment contract. In particular, the basic provisions of the employment contract are:
An employment contract may be concluded in any form, however, a written form is required to prove the existence of the employment relationship during inspection controls. Additionally, there are specific legal requirements for certain types of employment contracts (e.g., the type of work must be specified in general employment contracts).
An employment contract for an indefinite term is an open-ended contract that ensures the employee’s job security. It can in principle be terminated by either party with notice or by mutual agreement. Termination with notice requires specific legal grounds, whilst termination by mutual agreement does not.
An employment contract for a definite term is a closed-ended contract that is usually effective for a period of up to three years. It can be extended only twice, with the exception of managerial staff and employers executing works of minor scope. Extensions beyond the statutory period will render the contract an open-ended contract. Termination by the employer is allowed only in case of termination for reasons pertaining to the employee or for reasons outweighing the significance of the employee.
Fixed-term employment contracts must be concluded in writing, otherwise they will be subject to appropriate application of the rules applicable to open-ended contracts.
The Work Week: Hours and Overtime Provisions
Poland’s Labor Code covers the working hours of employees both in an individual employment contract as well as in collective labor agreements. Since 2008, employees in Poland may work up to 48 hours per week, including overtime. However, employers and employees may establish shorter working hours, so these limits are not absolute. The Polish labor law has no provisions regarding alternative working hours. As a rule, the analyzed regulations refer to working time planned for five days of a week with two days off. In Poland, the maximum daily working hours is 8.00 hours, calculated as a shift time that covers both the time of performing the work and the time for preparing for it. The principles for shifting working time depend on the agreed working time system: The system of equivalent working time permits the distribution of working time from an average of 48 hours per week to an average of 40 hours per week over the agreed settlement period. This settlement period is determined in the collective labor agreement, and if none is concluded, the period is determined by the employer. The reference period may not exceed one month, unless a period of up to twelve months is agreed upon. In connection with the equivalent working time system, an employer is allowed to introduce an act on the rules for conducting night time work which does not require a collective labor agreement. Such an act determines the rules and details concerning night time work in the employer’s workplace. These details include the regular working time of employees designated for night work at a given employer, the number of working hours that may be established for a given employee per month and per year, allowances for such work, and the rules for authorizing night work. Employers and employees can also introduce a flexible working time system, which assumes that employees’ work duties will be fulfilled between different hours, depending on the current needs. Employers may introduce such a system unilaterally by issuing an order that includes the workdays, the daily length of work, and the maximum weekly working time. The maximum working time in Poland is 48 hours per week, including overtime hours. Overtime work may not exceed:
Rights and Protections for Employees
Employees in Poland must be treated with care in accordance with their rights provided by the employment agreements, collective labour agreements and the legal rules.
On 1 January 2004, Poland adopted new provisions of the Polish Labour Code regulating violation of equal treatment in employment. As a result of that new regulation the Equal Treatment in Professional Life Act (Journal of Laws of 2003, No. 213 item 2081, as amended) was repealed and financial protection and compensations were established for the injured party in case of the violation of the principle of equal treatment. In this way, under Article 183g of the Polish Labour Code, discrimination between employees is not allowed. The same prohibition applies to all issues related with recruitment, employee training, promotion, dismissal or termination of employment, in particular, when it comes to:
After the termination of employment the employee has the right to evidence of the former employment (reference, certificate of employment, etc.). The reference should contain information about the type of work, its duration and related qualifications and skills. If the employer fails to provide the reference, then the employer, irrespective of any other claims raised by the employee, is obliged to compensate him for the damage incurred as a result of the failure to issue the reference (Article 183(8) of the Labour Code).
Poland implemented the provisions of Directive 89/391/EEC to ensure work safety, health and hygiene in Polish labour law. It is an employer’s duty, in particular, to create and implement appropriate health and safety policies, to maintain healthy and safe workplaces, to take appropriate measures to prevent occupational diseases and incidents, and to examine and evaluate the risk to employees. It is also important that the employer appoint a staff member to be responsible for overseeing this area. In addition, the employee is required to execute his or her work duties with due diligence and to comply with with applicable occupational health and safety regulations.
Even if the employee violates health and safety regulations, that does not absolve the employer from liability for work accidents. The employer is exempt from liability only if the work accident occurred due to wilful misconduct of the employee (Article 128 of the Labour Code).
Holidays and Leaves: Vacation, Sick Days and More
Leave entitlements for employees in Poland include annual leave, sick leave, parental leave, and termination leave. Here are a few things you should know about each of these:
Annual Leave (Vacation)
All employees in Poland are entitled to paid annual leave. Employees hired for the first time are entitled to 20 vacation days per year if they have 10 years of professional experience, and 26 vacation days per year after 10 years of professional experience. Employees hired prior to working in Poland do not get this automatic entitlement if their previous employment was with a non-Polish employer.
An employee must submit his/her annual leave request at least 14 days in advance, and employers may deny such requests only for the reasons provided by law (e.g., possible disruption of the operations of the work places). Employees are entitled by law to use their annual leave after two months from the date of the end of employment, and proportional payments are due upon termination of employment.
Sick Leave
Employees in Poland are entitled to a salary payment if they are unable to work as a result of illness for more than 33 days (14 days in the case of employees over the age of 50). The sick leave payment is usually equal to 80 percent of the employee’s gross salary. The benefit is provided for a maximum of 182 days (270 days for employees over the age of 50). If an employee is unable to work as a result of an accident at work or occupational disease, the employee is entitled to 100 percent of his/her gross salary plus any overtime payments for the first 33 days of illness. After that the rule is the same as for other kinds of sickness.
Parental Leave
Mothers are entitled to 20 weeks of paid maternity leave, which is to be paid by the Social Security Office (ZUS). During the first 6 weeks after giving birth, a woman is entitled to 100 percent of her gross salary. After that, she is entitled to a flat-rate maternity allowance of about €450 per month for another 14 weeks. Some private insurance policies cover the difference between this allowance and 100 percent of salary. Like fathers, mothers are entitled to take parental leave immediately after the maternity leave, and they are entitled to 32 weeks of paid leave (typically paid at 60 percent of gross salary). They also can opt to take 64 weeks of unpaid parental leave any time until the child reaches the age of five.
Paternity Leave
Since January 2016, fathers have the same rights and obligations with respect to parental leave as women. They can take parental leave immediately after the expiry of maternity leave for a period of 26 weeks, with the allowance paid at the same level.
Termination of Employment: Regulations and Procedures
Notice periods in Poland vary depending on the contract length and the employee’s seniority. As the employee’s tenure with the company increases, so does the notice period and the level of protection they enjoy against dismissal.
An employment contract for an unspecified period of time (open-ended) may be terminated by either party at any time with an observance of applicable notice periods:
The notice period for employment contracts for a specified period ranges from 3 days (for a contract shorter than one month) to 3 months (for a contract longer than 3 months). Specific rules apply to the protection against termination (specified below).
Under the Polish Labour Code, in addition to the aforementioned notice periods, employees are further protected against termination during certain situations:
In the termination procedure , the most important role is played by the employer, who must justify the decision. An employment contract for an open-ended period cannot be terminated without giving a legally justified reason (economic, organizational or personal) for such termination. The reasons for termination must be specified in writing. If none are given, the employee may request that they be provided by the employer, within 7 days from receipt of the termination notice.
An unjustified termination of employment is treated as an action inconsistent with the law and entitles the employee to request its annulment. If the grounds for termination were non-existent (i.e. such information has proven to be false) at the time of termination, the court shall declare the termination ineffective and provide the employee with continued employment and remuneration equivalent to the notice period.
The Role of Trade Unions and Collective Agreements
The role and influence of trade unions and collective bargaining (including works councils)
For employers, the Polish trade unions law grants a very broad freedom of association. In Poland, trade unions exist to represent their members in collective bargaining, employment disputes, and in legal proceedings. The Polish law does not regulate any additional practical requirements for terminating trade union representatives’ employment, however, as a matter of good practice, it is advisable to consult with a trade union prior to dismissing a trade union representative. In cases of termination of employment relations with trade union representatives, unions should be given an opportunity to reply, and, at the same time, they should not be terminated within the last 6 months of the employment term.
Trade unions have the right to participate in collective bargaining with the employer, based on the provisions of the Act on Information and Collective Negotiation or the Collective Dispute Procedure. Collective bargaining in practice, however, exists almost exclusively at the company level. Trade unions very rarely initiate collective bargaining at the branch level. Employees are entitled to elect trade union representatives, who then have the right to represent employees in matters not exclusively for trade unions. At the same time, the employer has to respect the information rights of trade unions, which means it must communicate information relating to termination of an employment contact and other issues of the company.
If there is no provision of law or a collective bargaining agreement (CBA) that provides for a redundancy compensation scheme, collective redundancy rules apply. Collective redundancy rules mean the following:
Collective disputes exist in Poland if the course of work is hindered or stopped, which is caused by an employer’s action in relation to remuneration and/or other work conditions. If collective bargaining with the works council or trade unions fails, the concerned trade union (if there is more than one) may call for a strike. In the case of Polish law, earlier notification to the employer is required (48 hours’ notice).
Penal Provisions and the Enforcement of Labor Laws
Both the Polish Labor Code (Cody pracy) and the Trade Unions Act (Ustawa o związkach zawodowych) regulate the employment relationship and provide for various penalties in the event of non-compliance with their provisions. In addition, enforcement under the Labor Code is the responsibility of labor inspectors, who simultaneously serve within the National Labour Inspectorate (PIP) within the Ministry of Family and Social Policy (Ministerstwo Rodziny i Polityki Społecznej). Working hours, minimum wages, work time rules, and employee health and safety comprise the most common violations of Polish labor law. As a rule, PIP is entitled to seek an inspection of the premises in which work is provided, including at business, manufacturing, and construction sites. The aforementioned Ministry delegates the ability to carry out inspections to superiors of the inspected entity, and to labor inspectors within the PIP, who must observe mandatory reporting protocols. Additionally, legal remedies, such as complaints with labor court against decisions issued by the PIP or by other bodies enforcing labor laws.
Recent Developments and Looking Ahead
Poland’s labor laws have undergone a number of recent amendments. In 2017, amendments to the Polish Labour Code covering maternity and parenting leave were finalized. As of 1 January, working parents are entitled to additional vacation leave and the number of parenting leave days was extended. Parental leave can be taken in blocks or separately. Fathers are obliged to take at least nine weeks of such leave regardless of whether the mother has taken leave. If the mother takes leave for a shorter period than the full 52-week maternity leave period, the remainder is assigned to the father.
Amendments to the Act on Employment promotion and labour market (EPLLM), were passed in March 2019, which toughen penalties for violation of labour laws by employers. The fines for violation of the provision concerning employee safety have been increased from 100,000 to 200,000 PLN for non-business entities, and from 30,000 to 60,000 PLN for business entities. Sanctions for permitting an employee to carry out work without the required medical examination are now set at 30,000-300,000 PLN for non-business entities and 20,000-200,000 PLN for business entities . The penalties applicable for violation of employee health care provisions (such as failure to provide preventive medical care, failure to provide first aid during work, or limiting the provision of medical care to the workplace) were increased from 3,000-30,000 PLN for non-business entities and from 3,000-20,000 PLN for business entities. Additional sanctions were also introduced, including a prohibition on carrying out business activity for a period of three years (for non-business entities).
Although legislative changes to Polish labor laws took place only recently, there may be more on the way. The draft Labour Code prepared by the government in 2017 has not been implemented, and due to its complexity, a number of doubts as to its analysis exist. With regard to minimum wage, the Draft Labour Code does not vary the minimum wage depending on the age and experience of an employee (as did the previous version of the Labour Code), but maintains the level at the same level, regardless of such factors. A minimum wage increases are planned to be announced by 15 September. These may further increase employment costs leading to a potential increase in unemployment as employers try to avoid hiring. An increase in the wage threshold for pension costs may limit hiring of new employees and lead to an overall increase in day rates for subcontractors as well.