In the heart of Central Europe lies Poland, a country with a rich history, high standards of living, and a strong economy. Known for its safety, economic freedom, and free university education, Poland has become an attractive location for businesses seeking to expand into its skilled labor pool.
However, when it comes to hiring and managing employees in Poland, understanding the intricacies of the local labor laws is essential. In this guide, we’ll delve into Poland’s labor market, Polish employment laws, tax regulations, and more to ensure your business operations stay in compliance with both Polish and European Union (EU) standards.
Polish labor laws are governed primarily by the Labor Code of 1974 and the Non-working Days Act of 1951. Every form of employment should highlight the employment start date, agreed compensation, working hours, deliverables, and anything else relevant to the offered position. There are four types of contracts in Poland:
As of July 1, 2023, Poland's minimum wage is PLN 3,600 per month, with a standard workweek of 40 hours at 8 hours per day. However, these working hours and overtime rules depend on the employee’s profession and can vary considerably.
Overtime work is usually capped at 150 hours per year, with corresponding pay rates ranging from 150% to 200% of the regular rate.
Poland has robust anti-discrimination laws within its labor regulations, covering various grounds to ensure equal treatment and protection of employees from discrimination in the workplace. The Polish Labor Code prohibits discrimination based on gender, age, disability, race, religion, nationality, political beliefs, trade union membership, and sexual orientation.
Employees in Poland are entitled to ample annual leave, sick leave, and are also offered substantial maternity and paternity leave benefits, emphasizing the nation’s commitment to work-life balance.
Poland has 13 public holidays, and employees are entitled to annual paid time off based on how long they have worked at a company (between 20-26 days of paid time off per year). Employees can also qualify for leave for disability, childcare, military duty, and others.
Employees are entitled to paid sick leave in Poland, though the length of the leave depends on age and how long the employee has worked at the company. Employers must pay 80% of the employee’s salary for the first 33 days of leave (14 days if the employee is 50+ years old), and the rest is covered by social security. If the sickness continues past this point, the employee can receive social security benefits.
Pregnant employees are entitled to 20 weeks of paid maternity leave (or 31 weeks for twins). The leave is paid by social security at 100% of the salary, and employees are required to take at least 14 weeks of leave after the birth of the child. Employees can also receive adoption leave.
Fathers can receive 2 weeks of paid paternity leave, taken with 2 years after the birth. If the mother wants to return to work early (after the 14 weeks of mandatory maternity leave), the father can use the remaining balance of the maternity leave. Employees can also receive adoption leave.
Parents in Poland can also take up to 41 weeks of paid parental leave after the maternity leave has been fully completed. This leave is paid at 70% of the salary and can be used entirely by one parent of simultaneously by both parents.
The Polish government is currently crafting regulations for remote working, potentially making certain employer duties mandatory, such as workspace provision standards. Remote work arrangements must be mutually agreed upon by employers and employees.
In Poland, there are four ways to end an employment relationship between an employer and employee:
1. Mutual Agreement: Employment can end with both parties' consent, with no restrictions on initiation, timing, or contract type.
2. Via Notice Period:
3. Immediate Termination:
4. Contract Expiry: For probationary or fixed-term contracts, the relationship will end at the end of the contract period unless it is renewed.
If an employee is let go due to redundancy/group dismissal, or for reasons that are not attributable to the employee or their performance, they are entitled to severance pay based on their length of service with the company:
Figuring out the ins and outs of hiring in another country can be complex, but finding a partner with the right expertise and solutions can help your business remain compliant. Consider partnering with Remofirst for Employer of Record (EOR) services that streamline global payroll in 170+ countries.
Learn more about hiring and managing employees in Poland in our comprehensive Poland Country Guide.