Poland - Employer of Record Services

Coberon Chronos provides Employer of Record Services for clients who want to hire employees and run a full payroll without establishing an entity in Poland.

In Poland, your candidates get hired by CoberonChronos’ PEO legal entity in accordance with local Labor Code and can be onboarded in days by signing a labor contract we can provide in Polish language. The employed is eligible and assigned to work with and on your company’s behalf exactly as if he/she were your employee in-country. We prepare the monthly salary, benefits and allowance payroll and we calculate all expense reimbursement costs too. Each month the required tax get filed and paid to the state.

A great place to work and live
Capital: Warsaw 
Currency: Polish złoty/PLN
Dialing code: +48

Employment At a Glance

The Polish labour market is well regulated and governed by the local Labour code which protects the employees’ rights. There are specific rules and procedures that must be followed in cases of new employment, contract period and termination. The labor code strongly protects both employees and employers. Companies can be fined and sanctioned if they do not follow the statutes.

It is very important that when the negotiating on the terms of an employment, its period an offer letter is highly advised to be finalised in a written format, get signed by both parties (digital, electronic or in person).

Standard labor code details and best practice information is useful to keep in mind:

Employment contract in Poland
Types of employment contracts distinguished by the law are: a trial contract, a definite term contract, a contract for the duration of a particular period. Generally, an employment contract is executed for an indefinite duration, so called open-ended in Poland.
 

Fixed-term contracts are only allowed for up to a maximum duration of 33 months. The number of fixed-term employment contracts between the same parties is limited to 3 regardless of the break between the previous and current contract (a contract simply for a probationary period does not count). Each subsequent employment contract will, by virtue of law, be deemed to be open ended contract. Each third, fixed term contract will be deemed to be open ended however this only applied if the parties had previously concluded 2 consecutive ficed-term employment contracts for a definite period of time in succession, where the break between the contract and the same parties is less then 1 month.  

Employment contracts must be in writing in the local polish language and must include the terms of the employee’s start date, place of work and working hours, monthly gross salary and compensations which must be always stated in the local currency, job title, probation period and a job description with responsibilities and duties.
 
Probationary period
Local labor code specifies that the probationary contract is allowed up to 3 months period.

 

Public Holidays in Poland
Employees are entitled to 13 public holidays, including:
  • New Year’s Day (Nowy Rok): January 01, 2017
  • Epiphany: January 6, 2017
  • Easter Sunday: April 14, 2017
  • Easter Monday (Poniedzialek Wielkanocny): April 17, 2017
  • May Day (Swieto Panstwowe): May 1, 2017
  • Constitution Day: May 3, 2017
  • Pentecost Sunday: June 04, 2017
  • Corpus Christi (9th Thursday after Easter)
  • Assumption of the Blessed Virgin Mary Day: August 15, 2017
  • All Saints Day: November 01, 2017
  • Independence Day: November 11, 2017
  • Christmas Day: December 25, 2017
  • Second Day of Christmas: December 26, 2017

13th month salary in Poland
The 13th month salary is not mandatory.

Bonus payments in Poland
It is entirely up to the employer what bonus to pay or whether to pay at all. Any employee may receive for example individual bonuses based on performance and its key factors or based on corporate structure bonus plan linked to individual/department/corporate performances.
 

Standard Working Hours in Poland
General number of working hours is 40 a week (with an average working week of 5 days of 8 hours work). Aggregated weekly working hours and overtime work may not exceed 48 hours a week. Overtime as a rule may not exceed 150 hours a year. An employee is entitled to double remuneration for overtime at nights, on Sundays and bank (public) holidays (as well as for overtime exceeding the statutory aggregated weekly limit) and to remuneration increased by a half for other overtime. Employees have the right to at least 11 hours of undisturbed rest in every 24 hours and 35 rest hours a week. Days free of work are Sundays and bank holidays.
 
Vacation in Poland
Employees are entitled to be paid annual leave based on the time spent at the contract, overall 20 working days per yer during the first 10 years of employment (including the duration of higher education) and 26 days thereafter.

 

Sick Leave in Poland
An employee is entitled to specific day of sick-leave yearly and for the first 33 days the employee receives 80% of their salary from his/her employer or more if stated in employee contract or corporate policy.

 

Business travelling
Employees who perform their employment duties (tasks) in a location other that the employer’s seat or their regular workplace are entitled to reimbursement of expenses related to the business trip. These daily allowances, as well as accommodation limits and conditions for reimbursement are set, for the public sector, in a regulation by the Minister of Labor, which is also applied by other employers in lack of own regulations. Travel expenses to the regular workplace are not covered by the employer, unless otherwise provided in the employment contract, collective bargaining agreement or inner rules on remuneration pronounced by the employer.

Termination of Employment Contract in Poland
 
  • Probation contracts are allowed up to 3 months in Poland.
  • A fixed-term contract expires automatically with the end of the term.
An employment contract may be terminated:
  • upon mutual agreement of the parties (at any time and regardless of the type of contract),
  • by one of the parties upon prior notice (at the end of a specified notice period;
  • if the employer intends to discharge an employee on an indefinite employment contract, he must provide justification and often consult trade unions),
  • by one of the parties without prior notice (if serious breach on the side of the other party occurred or if employment cannot be continued for certain reasons).
 
Notice periods depend on the type of employment contract and actual duration of employment:
  • A fixed term contract may be terminated upon a 2-weeks notice provided that it has been concluded for at least 6 months with an express contractual provision concerning the termination possibility.
  • An indefinite term contract may be dissolved upon a 2-weeks notice if the employee has worked for the employer less than 6 months, a month notice if at least 6 months have elapsed but less than 3 years and a 3-months notice if employee has worked for at least 3 years.
Dismissal without notice is possible in case of: 
  • a serious breach of basic employee’s duties (drinking alcohol at work, being absent without proper excuse), commitment of a crime, expiry of credentials indispensable for the work performed (occupational qualifications), as well as inability to work due to an illness or other excused reason for more than a specified period.
  • Termination is inadmissible (under further reservations) during e.g. vacation, pregnancy, maternity leave, sick-leave, near-retirement period, trade union term of office.

The employee is entitled to severance pay if the employer terminates the employment.

Employment Taxes in Poland
Taxable object is income of all types received from the Employer. 
The employer’s statutory social contribution is at a rate of 19.48%-22.14%.

Employers have to deduct a 13,71% personal income tax and other contributions from the employee's gross and all .

Health Insurance in Poland
Poland provides a medical coverage to all citizens and foreign citizen employees with work permits being on a full payroll based on employment contract and based on the specific payroll contributions as one source of such coverage funding.

Immigration / Work Permits in Poland

Since Poland is a member of the European Union (EU) differing rules and conditions apply to EU/EEA nationals compared to non-EU/EEA nationals. There are different types of residence and work permits issued in Poland which include individual work permit, individual work permit within a collective work permit.

 

Why Coberon Chronos

In Poland to hire a small or large number of staff can be time consuming, expensive and complex without the extensive knowledge of the local Labor Code but mostly to apply to the best practices.

Coberon Chronos can help your business to hire your candidates, handle all the hiring administration and payroll and ensure that you’re in compliance with local labour laws, without the burden of setting up a large office or subsidiary abroad in a rush.
Our Global Employer of Record and PEO services lets you focus on running your key business in a new country.
If you have an immediate EOR needs to just would like to discuss how CoberonChronos can provide a seamless employee-leasing or PEO solution for hiring employees in Hungary, please contact us at sales@coberonchronos.com.

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