Labour law in Poland

1.1. Employment contracts

Types of employment contracts

Employment contracts may be for an indefinite or limited period. They may be preceded by a probationary period not exceeding three months.  

As a general rule, only three consecutive fixed-term contracts are permitted and the period of employment under fixed-term contracts, as well as the total period of employment on the basis of fixed-term contracts concluded between the same parties, may not exceed 33 months. 

Compulsory prolongation of fixed-term contracts

If the period of employment is longer or where a fourth consecutive fixed-term contract is entered into, the contract will be automatically deemed to be for an indefinite period. These rules do not apply when a fixed-term contract has been entered into:

• for the purposes of substituting an employee during an excused absence at work;
• for the purposes of performing any work of a casual or seasonal nature;
• for the purposes of performing work during a term of office;
• if the employer gives objective reasons related to the employer

– where the conclusion of such contract in a given case addresses a real and temporary need and is necessary for all the circumstances surrounding the conclusion of the contract.

Written form required

Employment contracts should be concluded in writing, although oral agreements are also valid as long as they are confirmed in writing prior to commencement of employment. Should an employer fail to complete the confirmation in writing, certain fines may come into effect.

Issues to be specified

An employment contract must clearly specify the parties, the type of contract, duration of contract, the date of execution and the work and pay conditions, in particular the type of work, the place of work, the date of commencement, the working time and remuneration corresponding to the type of work, including a designation of the remuneration components. 

Choice of law

The parties to an employment contract are free to select the law of another country if it is relevant to their relationship.

However, if work is to be performed in Poland certain employee entitlements as imposed by local law may need to be recognised by an employer if they go further than those provided under the law of choice.

Jurisdiction clause 

The parties to an employment contract may not exclude the jurisdiction of Polish courts by choosing foreign courts or an arbitration court (either Polish or foreign).

1.2. Service agreements

No substitute for employment contract

Tasks may also be performed under the framework of service, management, or specific task agreements. However, an employment contract may not be substituted with any other contract if the conditions of the relationship between the parties to the contract are characteristic of an employment relationship (e.g. performing specific work according to the instructions and under the control of the employer, at a place and time specified by the employer, receiving fixed remuneration for the performance of work). In such circumstances the individual’s work will be considered to be performed under a contract of employment, regardless of the title given to the contract by the parties.

1.3. Employment of foreigners

Work permit

As a rule, employers who wish to hire foreign employees in Poland must obtain a work permit from the relevant Voivode Office (provincial governor). Foreigners may only be employed for the period of time specified in the work permit (which can be issued for a maximum of three years, with a possibility of an extension), but no longer than for the period of stay established in the work visa or the period specified in the temporary residence permit in Poland.  

A work visa/temporary residence permit is a separate travel (or residence certification) document to the work permit and the foreign employee has the responsibility of obtaining this document. The employer must request the foreign employee to present a valid stay document authorising legal residence in Poland before permitting the individual to work. Additionally, the employer is required to keep a copy of this document in the employee’s files. 

Exemptions to work permit 

In general, work permits are not required for EU or EEA citizens or citizens of other countries linked to the EEA association by bilateral agreements with EU countries and the European Community itself (Switzerland). 

Apart from the above, work permits are not required if a foreign national from another country: 

• holds a permanent residence permit in Poland; 
• is a spouse of a Polish citizen and holds a temporary residence permit in Poland granted in connection with entering into marriage; 
• holds a valid Pole’s Card; 
• is authorised to stay and work in the territory of an EU Member State or an EEA State not belonging to the EU or the Swiss Confederation, who is employed by an employer with its seat in the territory of such state and temporarily posted by this employer to provide services in Poland; 
• is a management board member of a Polish company, staying in Poland for less than six months during any 12 consecutive months ; 
• is posted to work in Poland (while still having permanent residence abroad) by a foreign employer for a period not exceeding three months in a calendar year, to install, maintain or repair equipment or machinery produced by said foreign employer, or to provide training to the workers of the Polish employer who is the recipient of such equipment on how to operate it; 
• is a citizen of Ukraine, Belarus, Armenia, Moldova, or Georgia and the employer registers for the individual a declaration of employment with the relevant labour office; 
• is an IT specialist and a citizen of Belarus, Armenia, Russia, Azerbaijan, Moldova, Ukraine or Georgia, and has a Polish visa issued within “Poland Business Harbour” programme. Members of the close family can also participate in this programme. 

Separate immigration rules apply to Ukrainian citizens. Generally, they can work in Poland without a work permit, provided their stay in Poland is legal and the employer notifies their employment to the relevant labour office within 14 days of the start of employment. 

1.4. Special provisions for executives

General rules apply with only minor exceptions

Executives (managing directors and other managers) who enter into an employment contract are covered by the general rules of employment law.

There are only minor exceptions to these general rules. For example, executives generally do not have the right to additional remuneration for work performed beyond normal working hours. In addition, different rules apply in relation to working during night-time, minimum rest in a 24-hour period, limit of total weekly working time and – generally – time recording.

2.1. Minimum salary

Statutory minimum salary

The parties are free to agree on the amount of remuneration. However, the monthly remuneration cannot be lower than PLN 3,600 gross, which is the minimum national monthly wage for a full-time employee stipulated by law as of July 2023. In 2024 the national minimum wage for a full-time employee will increase to PLN 4,242 gross. 

Collective agreements

If an employer is bound by a single establishment or multi-establishment collective labour agreement, then the remuneration agreed by the parties may not be lower than the remuneration provided by these collective agreements.

Suspension of a collective agreement

If the financial situation of the employer so requires, the parties to a collective labour agreement may conclude an arrangement to suspend the application of the provisions of such collective labour agreement and/or multi-establishment agreement, in full or in part, for up to three years. 

2.2. Pay increases

Legal basis

There are no general requirements for pay increases and they are agreed individually by the parties. They can also be covered by collective labour agreements or internal remuneration by-laws.

2.3. Reduction of salary

Only with an employee’s consent

An employer may reduce the employee’s remuneration with the consent of the employee concerned (by signing with the individual the relevant addendum to the employment contract) or – in the absence of such consent – by issuing an alteration (adjustment) notice with the new terms and conditions of pay, to be effective after the required notice period ends. 

However, if an employee does not accept the new terms and conditions set out in the alteration notice, it results in the ultimate termination of the employment contract with the employer. 

In practice, this means that it is not possible to reduce remuneration without the employee’s consent.   

3.1. Standard working hours and breaks

Daily and weekly standard working hours

Standard working time cannot exceed eight hours per day and an average of 40 hours per an average five-day working week (within an adopted settlement/reference period not exceeding four months). 
In cases where it is supported by objective or technical reasons or work organisation, the employer may extend the settlement/reference period by up to 12 months. 

The settlement/reference period may be extended to 12 months in the collective labour agreement or by signing a special agreement with trade unions operating on site. If no trade unions operate on site, the agreement must be signed with ad hoc employee representatives. 

Paid and unpaid breaks

If the daily amount of working time is at least six hours, the employee has the right to a break of at least 15 minutes, which is included in the working time. 

The employer may introduce an additional break, not included in the working time, of up to 60 minutes for eating or arranging private affairs. This break should be stipulated in the collective labour agreement, the workplace regulations, or expressly in the employment contract (if the employer is not subject to any collective labour agreement or is not obliged to adopt workplace regulations). 

Specific work provisions

Specific work provisions can modify the standard eight-hour day.

Reducing the standard working time for employees working in onerous or harmful to health conditions may be done by establishing breaks from work included in the working time or by reducing the standard working time. In the case of monotonous work or work performed at a fixed pace, this may be done by introducing breaks from work counted as working time.

Additionally, in cases where the type of work or its organisation justifies it, a non-consecutive working-time system may be introduced in accordance with a pre-arranged schedule providing for not more than one break from work per day which lasts for no longer than five hours. The break is not included in the working time. However, the employee is entitled to receive remuneration for the break period in the amount of half the remuneration due for the duration of the stoppage.

Working schedules

Generally, the employer should prepare in advance and present the employees with individual working time schedules, determining the hours of work during the day, week, month and settlement period. In practice, a working time schedule specifies the start and end times for each day, as well as the days off. A work schedule may cover part of the settlement period. In any event it must cover at least one month and be presented to employees at least one week in advance. 

3.2. Minimum rest periods

Daily minimum rest period

As a general rule, an employee is entitled to at least 11 hours of continuous rest each day. A young person’s break from work, including at night-time, must be at least 14 consecutive hours. A young person is a person between 15 and 18 years old.

Weekly minimum rest period

In addition, an employee is entitled to at least 35 hours of continuous rest each week. The 35-hour rest period must include a Sunday or another day if work on Sunday is permitted. A young person’s weekly break from work should be at least 48 consecutive hours covering Sunday. 

Employees usually have two days off per week. There is no obligation to grant Saturdays as days off. If the employer needs some staff to work on Saturdays on a regular basis, then it may decide to specify a different working day as the day off for such employees.

Working on Sundays and on public holidays

Sundays and public holidays are generally days off. Work on these days is only permitted in some cases provided for by law (see section 3.5. below).

An employer is obliged to ensure that an employee working on a Sunday or a public holiday will have another day off in return for such work. In exceptional circumstances, if it is impossible to grant an employee another day off, an employee must receive appropriate compensation for such work.

If work is performed on Sundays on a regular basis, an employee should have at least one Sunday off in every four weeks.

Work on Sundays can be performed without any restrictions if an employee is employed under a system in which the work is performed only on Fridays, Saturdays, Sundays, and public holidays.

3.3. Maximum working hours in certain working time systems

Balanced working time system

If work cannot be distributed so as to be performed eight hours a day on a regular basis due to the type of work or the organisation of such work, an employer may apply a balanced working time system, where it is admissible to extend the daily amount of working time up to 12 hours. Under this system, employees are awarded additional free time on other working days of a given week or additional days off in order to balance the excess work performed earlier that week.

Extensive work must be balanced within a one-month settlement/reference period. In especially justified cases, the settlement period may be extended up to three months. In cases where the type of work or its organisation justifies it, the employer may extend the settlement period up to 12 months.

This working time system may be useful in situations when the employer is able to anticipate in advance that the workload will exceed eight hours of work on a given day.

Continuous working systems

Regarding any work which, due to the production technology, cannot be interrupted (work in a continuous working system), a continuous working-time system may be adopted where it is admissible to extend the working time for up to an average of 43 hours per week in a settlement period not longer than four weeks. Within this standard, the working time of one day per week may be extended up to 12 hours in some weeks.

Special types of work

If the work involves guarding equipment, or partially involves readiness for emergency work, then a balanced working time system may be applied, which allows the daily amount of working time to be extended up to 16 hours in a settlement period not longer than one month. In this system, directly after each period of work that exceeds the standard daily amount of working time, an employee has the right to rest for a time corresponding to at least the number of working hours (this is without prejudice to the regular rest of 11 hours per day and 35 hours per week). 

Employees employed in guarding property or protecting individuals, as well as employees of the establishment’s fire protection team or rescue services, may be subject to a balanced working time system in which the daily amount of working time may be extended to 24 hours in a settlement period not exceeding one month. Again, directly after each period of work that exceeds the standard daily amount, an employee has the right to rest for a time corresponding to at least the number of working hours (this is without prejudice to the regular rest of 11 hours per day and 35 hours per week). 

Task-specific working time system

This regime may be applied in cases justified by (i) the type of work to be performed individually and in a flexible manner; (ii) work organisation (no office routine); or (iii) specified places of work usually outside of the employer’s premises. In this system the employer, after consulting the employee on tasks, establishes the time required for performance of the assigned tasks, taking into consideration the working time standards referred to above (eight hours per day and an average of 40 hours per average five-day working week within an adopted calculation period not exceeding four months). 

This working time regime does not require the employer to record the employee's working hours on a regular basis, as the employee's working time is measured by the assigned tasks.

Flexible working time system

The employer may introduce a flexible working time system, under which the employees may start and finish work at different times on different days. For example, the employer may determine that work starts between 8 am and 10 am and finishes between 4 pm and 6 pm. Starting and finishing hours may be chosen by the employee or determined by the employer, as the case may be.

The flexible working time system may be introduced in a collective labour agreement or in a special agreement with trade unions operating on site. If no trade unions operate on site, the agreement must be signed with ad hoc employees’ representatives. It may also be applied individually at an employee’s written request.

3.4. Overtime work

Definition and general principle

Work performed in excess of the standard working hours and work performed in excess of the extended daily working hours (based on the working time regime where such extension is permitted) constitutes overtime work. 

Such work is only permissible in the case of: 

• a need to carry out rescue operations for the protection of human life or health;  
• for the protection of property or the environment or for a need to repair a breakdown; 
• special needs of an employer. 

Limitation on overtime work

The number of hours of overtime work connected with the special needs of an employer may not exceed 150 hours per calendar year per individual employee. 

The collective labour agreement, workplace regulations or the employment contract may stipulate another amount of overtime work hours per calendar year. 

However, the overall working time, including overtime work, shall not exceed 48 hours per week, on average, in the adopted settlement/reference period. (This does not apply to employees managing the organisation on behalf of the employer). 

Compensation of overtime work

For overtime work, in addition to the regular remuneration, the employee is entitled to an allowance of: 

• 50% of the hourly rate – for overtime hours during a working day (including weekends and public holidays, if according to the working time schedule these are normal working days) 
• 100% of the hourly rate – for overtime worked at night, on Sundays, and on public holidays that are not usual working days for the employee, as well as on rest days granted in exchange for working on Sunday or public holidays that are not usual working days for the employee. 

The employee shall not receive an allowance for working on a Sunday or public holiday if the employee has taken a rest day in lieu. 

The allowance is also payable for each hour of work in excess of the weekly working hours in the settlement/reference period. 

Time off in lieu

Instead of payment of the allowance an employee may be granted time off in lieu. An employee who is granted time off for overtime is not entitled to additional compensation for overtime. 

If time off is granted at the employee’s request, it should correspond to the amount of overtime worked. Time off may also be granted at the employer’s request. In such a case, the number of hours off corresponds to 150% of the number of hours worked overtime. Time off is granted in a given settlement period. The remuneration due to the employee for a full month may not be decreased due to granted time off (if the employee receives remuneration at an hourly rate). 

Employees that do not qualify for overtime allowance

Employees who manage the employing establishment on behalf of the employer and heads of separate organiszational sub-units of the organisation shall, insofar as necessary, perform work beyond normal working hours without the right to additional remuneration for overtime. 

Employees who are heads of organisational sub-units have the right to additional remuneration for overtime work performed on Sundays and public holidays if they have not been given another rest-day in return.

3.5. Working on Sundays and public holidays

Definition

As a general rule, Sundays and public holidays are days off.

Unless stated otherwise, work on Sundays and on public holidays is considered to be work performed between 6 a.m. on the same day and 6 a.m. on the following day.

Permissible only in certain circumstances

Work on Sundays and public holidays is permissible only in certain circumstances, such as: 

• the need to carry out rescue operations for the protection of human life or health, or for the protection of property or the environment, or to repair a breakdown; 
• a continuous working system; 
• shift-work; 
• carrying out necessary repairs; 
• transport and public transport; 
• for fire brigades or rescue services in the workplace; 
• guarding property or protecting individuals; 
• agriculture and breeding; 
• work necessary because of its public usefulness and daily needs of the public, including in particular establishments rendering services to the public, catering establishments, hotel establishments, municipal public utility entities, health care centres and other health care establishments designed for people whose health requires everyday medical care, welfare houses and care and upbringing establishments providing all-day care, and establishments carrying out cultural, educational, tourist and recreational activities; 
• working in a time system where work is rendered on Fridays, Saturdays, Sundays and statutory holidays only. (This system can be established upon the employee’s written request. In this system, it is possible to extend the daily amount of working time up to 12 hours in a settlement period not exceeding one month); 
• rendering services using means of electronic communication or using telecommunications devices, received outside the territory of the Republic of Poland, if, pursuant to the provisions binding for the service recipient, Sundays and public holidays are working days for such service recipient; 
• ensuring the possibility of rendering services referred to in the previous point. 

Trading units

Work on public holidays is not allowed in trading units. Moreover, the government is gradually limiting the number of Sundays on which work in retail in allowed. On Christmas Eve and Holy Saturday, retail is allowed only until 2 pm. According to the Polish Act on Trade ban, as of 2020 there is only seven trading Sundays.  

3.6. On call

General

Polish law permits an employer to require an employee to be on call outside standard working hours.

Time on duty and working time

The time on duty will not be included in the working time if an employee does not perform any work while on duty. The time on duty, however, must not breach the employee’s right to rest. 

Compensation for on call

The employee shall be entitled to compensation for on-call time, either in the form of extra time off corresponding to the length of the time on call, or extra pay for each hour spent on duty. This compensation is not required if the employee stays at home on call.

The above restrictions do not apply to employees who manage the employing establishment on behalf of the employer.

3.7. Allowance for night work

Calculated on the basis of the statutory national minimum wage

An employee who performs work at night has the right to additional remuneration of 20% of the hourly rate based on the national minimum wage for each night-time working hour (as referred to in section 2.1. above). 

Night-time work hours are determined by an employer and set out in the company workplace regulations. Night time means any eight hours between 9 pm and 7 am. 

For employees regularly performing night work outside the company’s premises, the above additional remuneration may be replaced with a fixed remuneration of an amount corresponding to the expected amount of hours of night-time work. 

4.1. Holiday entitlement

General

As a general rule, any employee has the right to annual, uninterrupted, paid holiday leave.

Minimum holiday entitlement

Annual holiday leave entitlement is determined based on the total employment history of the employee. For the purpose of calculating this entitlement, any periods of former employment must be included, regardless of breaks in employment and the way in which the employment relationship was terminated. In addition, the employment history includes certain periods spent by the employee on education. 

The annual holiday leave entitlement amounts to: 

• 20 days – up to ten years of employment history; 
• 26 days – on or after ten years of employment history. 

Saturdays, Sundays, public holidays and days off that are not usual working days according to a five-day week are not counted when calculating holiday leave 

Holiday on demand

Polish law guarantees that every calendar year an employee has the right to enjoy four days of the annual holiday entitlement on a date of the employee’s choosing without prior approval (i.e. days off on demand). Generally, this leave may be taken in full or in one-day instalments. The employee may request such days off on the day of commencing the leave at the latest. 

Employees hired during the calendar year

New employees hired during the calendar year are entitled to annual leave entitlement in proportion to the period for which they are employed at the new employer.

Accrual of holiday entitlement in the first year of work

An employee joining the employer as a first job can only take holidays in the first year of employment after the employee has worked the relevant period to accrue that holiday. The employee acquires the right to holiday gradually after each month of work, at the rate of 1/12 of the length of leave due to the employee after working for one year. These employees become entitled to any subsequent holiday leave if they remain employed on January 1st of the next calendar year. 

Education

The period of employment includes certain periods spent by the employee on education, including: 

• not more than three years for completion of basic or other equivalent vocational training; 
• not more than five years for completion of secondary vocational training; 
• five years for completion of a secondary vocational school for graduates from basic or other equivalent vocational school; 
• four years for completion of general secondary schooling; 
• six years for completion of post-secondary schooling; 
• eight years for graduation from university. 

The periods of study listed above may not be cumulative. 

If an employee attended school while employed, the period of employment includes either the period of employment or the period of education (whichever is more beneficial to the employee). 

4.2. Enhanced entitlement of paid holiday

Young persons

A young person (i.e. a person between 15 and 18 years) is entitled to 26 days of paid holiday after the first year of work. However, in the calendar year in which the young person reaches the age of 18 years, the individual is entitled to 20 days of paid holiday if the right to holiday was acquired before the person reached the age of 18. 

A young person acquires the right to the first holiday of 12 days after six months following the beginning of the individual’s first employment. 

After ten years of work, the young employee is entitled to 26 days of paid holiday, as provided under the general rules (see section 4.1. above). 

Special provisions

There are some groups of employees who enjoy an enhanced entitlement of paid holiday, such as policemen (who are entitled to up to 13 additional days of paid holiday depending on work experience, age and performing duties under special health and safety risks) or miners. 

4.3. Forfeiture of the holiday entitlement?

Forfeiture of the holiday entitlement

An employee may not give up the right to annual leave.

Employers’ obligation

If an employee does not take a holiday for one (or more consecutive years), the holiday is carried forward and added to the next year’s holiday. An employer is obliged to grant unused holiday during the first nine months of the following calendar year.

Time bar after 3 years

An employee’s claim concerning unused holiday is statute barred after three years starting from 30 September of the calendar year following the year in which the holiday was accrued.

4.4. Payment in lieu of holidays?

Cash payment in lieu for unused holiday

The employee may only be paid a cash payment in lieu of unused holiday in the case of termination or expiry of the employment relationship.

In such a case all unused holiday leave days due on the date of termination of employment will be compensated for with a cash payment calculated in accordance with the relevant local regulations.

This does not prevent the employer from requesting the employee to use up any outstanding holidays during the notice period.

Sick leave

Sick leave in Poland actually consists of two types of paid leave depending on who is obliged to continue payments during this period:

1) typical sick leave - for the first 33 days during a given calendar year (or 14 days in relation to employees aged 50 and above);

and upon completion of this sick leave:

2) long-term sick leave - which normally may not exceed 182 days of continuous absence in the same calendar year (including 33 or 14 days of the typical sick leave as appropriate).

Sick pay

The employer pays 80% of remuneration for up to 33 or 14 days of sick leave as appropriate.

Sick pay is 80% of the employee’s average remuneration calculated on the basis of the salary received for the 12 consecutive months preceding the period of incapacity to work, unless the employer guarantees a higher sick pay.

Accident at work

The employee retains the right to 100% of the individual’s average remuneration for a period of sick leave due to an accident at work, an accident while travelling to or from work or disease during pregnancy. 

The sick pay is paid for each day of incapacity to work, including rest days. 

Sickness benefit by the Social Security Office

Upon completion of the sick pay period in a given calendar year, the Social Security Institution  assumes further payments (sickness benefit) to the employee on terms defined in separate provisions for a maximum period of 182 days per year (or 270 days if such incapacity is a result of tuberculosis or a disease during pregnancy). As with sick pay, this allowance is 80% of the employee’s average regular gross remuneration. 

In general, an employee must be insured with sickness insurance for more than 30 days in order to be entitled to receive statutory sickness benefit. 

Sickness benefit is not provided for: 

• those whose incapacity to work lasts less than 33 (or 14) days in a calendar year (in such circumstances employees are entitled to sick pay as set out above); 
• those who are on unpaid leave; 
• those who are on upbringing leave; 
• those whose incapacity to work was caused as a result of committing an intentional crime or offence; 
• who are under temporary arrest or subject to the penalty of deprivation of liberty; 
• those whose incapacity to work was caused by alcohol abuse (for the first five days of their inability to work). 

Apart from the sick pay for 33 (or 14) days of absence in a calendar year, employers do not have to provide for additional statutory sickness benefits payable to employees. 

If the employer employs more than 20 employees, the employer pays any payments to its employees on behalf of the State Social Security Office but, in return, it is entitled to deduct the sickness benefit paid out to employees in a calendar month from the current social security contributions made for active employees. Therefore, the employer does not financially cover the costs of the sickness benefit paid out to the employees but helps the Office in paying the sick benefits to the insured employees. 

Medical certificate

Every absence due to sickness requires a medical certificate signed by a doctor.

A company that hires more than five employees must register itself at PUE (electronic services platform for social security purposes). When a sick certificate is being issued to the employee, a doctor submits the sick certificate electronically to the Social Security Institution (ZUS). Then, ZUS provides the sick certificate to the employer through PUE (this online platform) no later than on the day following the date the sick certificate is issued. The employee is then not obliged to deliver the sick certificate to the company.

Medical examinations

A medical certificate may not cover more than three days of absence preceding the medical examination. The medical certificate is issued for the period during which the employee should refrain from work, but not longer than the date when it is necessary to carry out a re-examination of the employee’s health.

In the case of sickness exceeding 30 consecutive calendar days, before returning to work the employee is required to undergo a medical check-up to establish the employee's current health and capacity to perform the duties assigned to the position held.

General background

An employment contract may be terminated (depending on the circumstances of the case):

• by mutual consent of the employee and employer;
• upon a written declaration by one of the parties observing the period of notice (termination with notice);
• upon a written declaration by one of the parties without observing the period of notice (termination without notice);
• after the lapse of the contract’s specified period for which it has been concluded.

6.1. Formal requirements to be observed by an employer

Written form and reasons for termination

If an employer wants to terminate a contract with or without notice, the declaration must be made in writing. A declaration of termination of an employment contract for an indefinite period of time or for a fixed time should state the reason justifying termination of the contract. Furthermore, the declaration should include information on the employee’s right to appeal to a labour court. 

Obligation to inform a trade union

Where an employee is protected by a trade union and termination occurs for reasons other than the employer’s bankruptcy or liquidation, an employer must inform the union of its intention to terminate a contract for an indefinite period (see section 6.8. below). 

6.2. Notice periods

Varying notice periods

The period of notice depends on the type of the employment contract and may not be shortened below the statutory minimum. The period of notice may only be extended for the benefit of the employee. By law, the notice periods are as follows:

Contracts for indefinite period and fixed-term contracts

• with respect to employment contracts for an indefinite and definite period – notice periods increase gradually, depending on the actual length of employment with the current employer; if the employee has been employed:

Probation contracts

• with respect to probation employment contracts – the notice period varies between three working days and two weeks depending on the length of the probation period and are as follows: 

Calculation of the notice period

If the notice period is expressed in weeks, the notice period ends on Saturday after the relevant number of full weeks. If the notice period is expressed in months, the notice period ends at the end of the last full calendar month.

When calculating the applicable notice period the employer should add the prospective notice period to the actual length of employment, as the notice period is included in the length of service.

6.3. Termination without notice

Termination by an employer

Employers have the right to terminate employment contracts without notice where such termination arises from the fault of an employee, or as a result of a long-term absence from work.

Termination due to fault of an employee

An immediate termination due to an employee’s fault can take place only if an employee: 

• has seriously and intentionally – or by an act of gross negligence – violated his basic duties (fundamental breach of employee’s basic duties); 
• has committed an offence that makes the employee’s further employment in the position impossible, and providing this is obvious or confirmed by a final court verdict; 
• is responsible for losing a licence or qualification necessary to perform the employee’s duties in the position held. 

Time bar for an employer

An employer is only allowed to terminate the contract within one month of learning about the above circumstances.

Termination without an employee’s fault

Immediate termination without the employee’s fault can take place if the employee’s incapacity to work, due to illness: 

• lasts longer than three months (if he/she has been employed for less than six months); or alternatively 
• lasts longer than the joint period of receiving sick pay from the employer, statutory sickness benefit and rehabilitation benefit for the first three months: 

• if the employee has been employed for at least six months; and/or 
• if the employee has become unfit to work through an accident at work or occupational disease. 

The right to terminate without notice also arises if an employee’s justified absence from work for other reasons than those provided above lasts longer than one month. 

Termination by an employee

An employee may terminate a contract of employment without notice for health reasons if a medical certificate is issued stating that the work performed by the employee constitutes a health hazard and the employer does not transfer the employee within the time period specified in the certificate to another work position appropriate to the individual’s health condition and qualifications. 

Furthermore, an employee may terminate a contract without notice if an employer seriously violates its basic duties towards an employee. In such case, an employee has the right to compensation equal to remuneration for the period of notice. If the contract is made for a fixed period, compensation shall be equal to the amount of the remuneration for the period of intended validity of the contract, but for not more than the notice period.  

6.4. Requirement of a valid reason to terminate the employment

No statutory definition for “valid reasons”

An employer’s termination with notice of a contract for an indefinite period or a fixed term or the termination of a contract without notice should state the reasons for the termination. Under Polish law, there is no legal definition of “valid” or “justifiable” reason. Disputes concerning reasons for termination are decided by the courts. 

The reasons must be real and not of a general nature, so the employee can easily understand the grounds for dismissal. 

6.5. Remedies available to an employee

Time bar for judicial proceedings

If the employee finds the reasons or circumstances presented in the dismissal letter false or unjustified, the employee may challenge this dismissal in a labour court by requesting the court to assess whether the dismissal was compliant with Polish law. 

In the case of dismissal with notice, an appeal against a notice of dismissal shall be submitted to the labour court within 21 days of the date of service of the letter notifying the termination of the employment contract. An appeal against summary dismissal must be submitted to the court within 21 days of service of the letter notifying about termination of the employment contract with immediate effect. 

Grounds for appeal

An appeal against dismissal with notice may be based on:

• a breach of the law on dismissal of the employment contract; or
• a lack of a ‘justified reason’ for dismissal.

An appeal against a dismissal without notice may be based only on a breach of law, as the reasons for termination are specifically defined by law.

Compensation or reinstatement

Employees dismissed with notice who have been employed for an indefinite period may ask the court to reinstate them in their position, or may claim compensation. Other employees may claim compensation only. A claim for reinstatement to work or alternatively for the payment of compensation can be submitted to the labour court by employees dismissed without notice.

Employees dismissed with notice who have been employed for an indefinite period or a fixed term may ask the court to reinstate them in their position, or may claim compensation. A claim for reinstatement to work or alternatively for the payment of compensation can be submitted to the labour court by employees dismissed without notice. 

In general, the decision as to whether the employee will be reinstated or awarded compensation is at the discretion of the court. The court may decide not to reinstate an employee to work if it considers such demand to be impossible or that it serves no purpose. (This does not apply to employees under special protection, such as pregnant women). 

Employees previously employed for an indefinite period or a fixed-term period and dismissed with notice may be awarded compensation in the maximum amount of three months’ remuneration. Employees may be awarded even larger compensation if their employment contracts contain notice periods longer than three months. In such cases, compensation shall be equal to the remuneration for the period of the extended notice period. 

Remuneration for the time of being unemployed

If an employee is reinstated to work, the employee has the right to compensation for the lost remuneration for the time of unemployment (between one and two months). In the case of an employee who enjoys special protection, the employer will be obliged to pay compensation to the individual for the whole period of unemployment. 

6.6. Collective Redundancies

Definition

Terminations of employment fall into the category of “collective redundancies” if the employer employs at least 20 employees and within the period of 30 days:

• the redundancies are made on an employer’s initiative and are motivated by reasons not related to employees (e.g. a reduction in workforce due to the financial situation of the employer or due to organisational, production or technological changes, closure of the business, or the company becoming insolvent), and
• pertain to at least:
  • 10 employees if an employer employs less than 100 employees,
  • 10% of employees if an employer employs at least 100 employees, but less than 300 employees,
  • 30 employees if an employer employs more than 300 employees.

Employees dismissed upon mutual consent of the parties are included in the numbers specified above where such dismissals include at least five employees.

Duty of consultation and  notification

The collective redundancy procedure requires that a consultation be held with the trade unions (if there are any) or 'ad hoc' employee representatives. The letters of dismissal cannot be handed out until after the consultation period ends. Regarding the trade union, the minimum consultation period is 20 days. There is no statutory minimum consultation period where there are ad hoc employee representatives but it must be reasonable.

Notifying the local labour office of the outcome of the consultation with employee representatives and planned redundancies is also required. Letters of dismissal cannot be handed out prior to notifying the labour office. The employer cannot make any redundancies unless they are to take effect a minimum of 30 days after notifying the labour office. This applies to voluntary and involuntary redundancies. 

6.7. Redundancy payment

Redundancy pay

Employees that are made redundant under the group redundancy procedure are entitled to a severance payment, the amount of which varies between one and three months’ remuneration, depending on an employee’s total length of service. 

Statutory cap

Severance payments are generally capped at 15 times the statutory minimum salary (which is currently fixed at PLN 3,600 gross for full-time employee as of 2023 and will increase to PLN 4,242 gross in 2024). 

A redundancy payment may be due to an employee even where there is no collective redundancy situation. This is the case if a dismissal is made exclusively for reasons other than the employee’s conduct and performance, provided the employer employs at least 20 employees.  

6.8. Involvement of a trade union

Information to be provided to a trade union

If an employee employed for an indefinite period of time or fixed term is a trade union member (or is a person whose rights the trade union has agreed to protect) and is dismissed for reasons other than an employer’s bankruptcy or liquidation or is to be dismissed without notice, an employer must, in advance, inform the trade union in writing of the reasons for terminating the employment contract with this employee.

Trade union may comment on the proposed dismissal

If a trade union decides that dismissal would be unjustified, it may present an employer with substantiated objections, in writing, within five days of receiving the information above (three days in the case of dismissal without notice).

No right to veto the dismissal

An employer shall make a decision, having considered the opinion of the trade union or in the absence of such an opinion received in due time. However, an employer does not need the consent of the trade union. 

6.9. Employees with special protection against termination of employment

Protected groups

Under Polish law, in certain periods of employment and for certain employees, a notice of dismissal cannot be served. Some employees enjoy special protection against dismissal.

In particular, the notice letter cannot be served on an employee while the individual is absent from work due to:

• holiday leave,
• maternity leave or parental leave,

Furthermore, the employee enjoys special protection against dismissal during the following periods:

• pregnancy,
• when the employee is due to qualify for his/her retirement in less than four years from the date of receipt of the letter of dismissal.

If notice is served during one of the above-mentioned periods, although it will be effective and will terminate the employment contract, it will be deemed unlawful and may be successfully challenged by the employee if the employee decides to bring a claim to the labour court.

Protection for trade union officers and members of works council

Polish law provides for protection for employees who are members of the company’s trade union organisations (i.e. trade union officers and other persons designated by the trade union as being protected against termination), as well as for members of the European or national works council.

An employer cannot, without the permission of the management board of the relevant trade union organisation or the works council, respectively, terminate employment contracts or amend them in an unfavourable way with these members of the trade union organisation or the works council.

The time of protection

Works council members enjoy special protection against involuntary termination or adverse variation of their work and pay conditions during the term of their office.

Trade union officers and other persons appointed by the trade unions are protected against dismissal or adverse variation of their work and pay conditions during the term specified in the resolution of the management of the respective trade union organisation. They are also protected after the expiry of this term, for a maximum period of one year.

Members of the European works council are protected against dismissal or adverse variation of their work and pay conditions during the term of their office and for one year after its expiry.

6.10. Changing terms and conditions of an employment contract

Alteration notice

If an employer wants to unilaterally worsen conditions of work or pay set out in an employment contract, it should do so in writing in the form of an alteration (adjustment) notice. In the case of an employment contract for an indefinite period of time, the employer must additionally explain the reasons for the change, and such change should be justified by a valid business reason. The changes come into effect after the applicable notice period (which is equal to the notice period under the contract).

If an employee rejects the proposed new conditions of work or pay within the prescribed deadline (generally during the first half of the notice period), the contract of employment will be automatically terminated at the end of the notice period. If an employee does not reject the proposed conditions during the first half of the notice period, then the new conditions are considered accepted. An employer’s letter should include appropriate information in this regard. If there is no such information, an employee can reject the new conditions until the end of the applicable notice period.

Addendum to an employment contract

As an alternative to issuing an alteration notice, an employer may sign an addendum with an employee on changing the individual’s employment conditions. In such a case, the newly introduced conditions may be instantly binding.

Automatic transfer of employment contracts

Under Polish law, the transfer of an undertaking affects the employment relationship. The transferee assumes responsibility for employees working in the transferred business. The transferee becomes party to each employment contract automatically by operation of law as of the date of transfer of undertaking, and is thereby bound by all the terms of the contracts. Therefore, new employment contracts do not have to be entered into between the transferee and the transferred employees. Although employees are not under any obligation to work for the new employer (see information below), they cannot stop their transfer to the transferee.

Duty to inform

If there is a trade union organisation in the company, the employer who intends to transfer the undertaking must notify the trade unions in writing of its decision at least 30 days before the planned transfer. In the absence of a trade union organisation, the transferor shall inform all employees (not only the employees affected by the transfer) in writing of the transfer within the same timeline.

As a works council is deemed a separate employee representative body, it must be notified of the transfer in addition to any trade union organisation.

Regardless of the notification made by the transferor, the transferee must notify its own employees about the acquisition of the undertaking from the transferor within the same deadline.

If there are no trade union organizations present, both employers should notify their employees directly on the transfer of undertaking (without trade union involvement).

Notice of transfer

In both cases a notice of transfer shall include information of the reasons for the transfer, the legal, economic and social consequences of the transfer for employees, as well as any intended actions relating to the conditions of employment of employees, including, without limitation, the conditions of work, remuneration and possibilities of retraining.

Employees’ right to terminate employment

Any employee who is automatically transferred may, within two months of the transfer, terminate the contract with the new employer upon seven days’ notice. 

Liability of the employer(s)

Where the entire undertaking is transferred to another employer, the transferee, by operation of law, is liable for any employees’ claims relating to the employment with the former employer.

Where only a part of an undertaking is transferred to another employer, both the former and the new employer become jointly and severally liable for the obligations under the pre-existing employment contracts. This means that an employee may sue either the former or the new employer, or both.

8.1. Management of the business – state-owned companies

In companies established as a result of privatisation and as a result of a transfer by the State Treasury of more than half of the company’s shares, employees have a right to elect one employee to the company’s management board (this applies if the company’s average annual employment exceeds 500 employees). 

Employees may also have the right to appoint members of such companies’ supervisory boards. For example, the initial supervisory board of a state-owned enterprise formed into a privatised company must include two employee representatives. 

8.2. Employees’ representatives in state-owned enterprises

Employees’ representatives in state-owned enterprises

In state-owned enterprises, a general meeting of employees and an employee’s council act as formal representatives of employees.

General meeting of employees

A general meeting of employees consists of all employees in enterprises employing 300 or fewer employees. In enterprises employing more than 300 employees, the assembly of delegates replaces the general meeting of employees. Delegates are elected by employees for a period of two years. The number of delegates should be established in a statute containing rules on the employees’ self-government.

Employees’ council

An employees’ council consists of 15 members, unless the statute of the employees’ self-government provides otherwise. Members of an employees’ council are elected by employees for a period of two years.

Participatory rights

Employees’ representatives have the right to decide upon matters of great importance, can present opinions, take initiatives and submit motions, as well as supervise the activities of the enterprise.

No similar provisions for private enterprises

There are no similar provisions in relation to private enterprises.

8.3. Level of industrial action

Statistics

In Poland, trade unions, although not having strong statutory authority regarding the management of a company, can have an influence on the company by taking strike action. Strikes are sometimes used by trade unions to force employers to make decisions favourable to employees.

Below are some details in this regard published by the Polish Statistical Office. 

8.4. Release from work to conduct trade union activities

Only for certain trade union officials

Under Polish law, only members of trade union management boards (trade union officers) are entitled to be released in part or in full from the obligation to perform work while performing a trade-union function. The number of management board members who are entitled to the above depends on the total number of members of the trade union organisation acting at the given company. 

Remuneration for time off

A trade union may apply for an employee’s right to remuneration while released from work.   

Furthermore, each member of a trade union authority retains the right to remuneration for the time needed to perform temporary activities connected with the individual’s function in the trade union organisation, if such activities cannot be performed outside of working hours. 

8.5. Do employers need to provide any financial and/or technical assistance?

An office and necessary technical equipment to be provided

An employer is not required to reimburse costs that the staff representatives (trade union members) incur in connection with performing their functions. 

However, an employer must provide, at its own cost, a trade union organisation with an office and equipment necessary to perform its activities.

8.6. Collective agreements

Scope of collective agreements

Under Polish law, employers and trade unions may enter into collective labour agreements, which provide the terms of employment relationship (e.g. remuneration, time of performing work, additional benefits for employees) and mutual obligations of the parties, including complying with its terms. Such a collective labour agreement directly affects the rights of employees and usually all employees working in the organisation are covered by its provisions.

No collective agreements for certain types of professionals

The Polish Labour Code provides that certain types of professionals cannot be subject to a collective labour agreement, for example, civil service officers, local government officers, judges and prosecutors.

Suspension of a collective agreement

If the financial situation of an employer so requires, an employer may make an arrangement with employee representatives to suspend any collective labour agreement, partially or in full, but for no longer than three years.

9.1. Individual employment disputes

The Polish legal system provides for labour courts that function within the system of common courts. The labour courts have two levels.

Generally, labour courts adjudicate matters related to employment. It is not possible to decide in employment contracts or in by-laws that disputes should be subject to a jurisdiction other than the common courts.

Mediation can occur before taking a dispute to a labour court.

Most legal disputes concern the employee’s dismissal.

Additionally, Polish law provides for conciliation committees whose task is to amicably resolve disputes between employers and employees and, where possible, avoid a dispute reaching the courts. The committees consist of employees who are appointed by an employer and a trade union organisation, or if there is no trade union organisation in a company, then by an employer after obtaining the positive opinion of the employees.

Such committees are rather uncommon in private entities. 

9.2. Collective employment disputes

A collective dispute involves whole groups of employees, not only individuals, and may be initiated by trade unions. A collective dispute arises on the date that the trade unions submit demands if the employer subsequently fails to act on those demands within a specified period (not less than three days). 

The employer must notify the relevant labour inspectors of the fact that a dispute has arisen. 

The employer is obliged to immediately enter into negotiations to resolve the dispute by reaching an agreement. There is no statutory deadline for completion of negotiations. Negotiations should be held as long as there is a chance of an understanding being reached. If there is a lack of consent of one of the parties to the continuation of negotiations, a document is produced specifying the differences and current positions of the parties to a dispute.

Once negotiations have ended, trade unions may take any industrial action other than a strike (e.g. putting out banners). 

Mediation
 

If the trade unions uphold their demands, the mediation stage commences. Mediators are appointed by the parties to a dispute. If the mediator is not selected at the request of one of the parties within five days, the mediation is conducted by a mediator appointed by the Minister for Labour and Social Affairs.

There is no deadline for completion of mediation.

If the mediation proceeds in such a manner that there is reason to believe that the dispute will not be resolved within 14 days of having arisen, a one-off warning strike may be organised, for no more than two hours.

Arbitration

Before a strike is undertaken, the trade unions may attempt to end the dispute by submitting it to an arbitration body for resolution. The arbitration stage is not compulsory.

In such a case, trade union officers and the employer’s representatives may constitute an arbitration body, with a professional court judge as its chairman. 

The final possibility is a strike. During a strike the employees refrain from performing work. 

Before a strike is announced trade unions are obliged to hold a strike referendum among the employees. Consent must be given by a majority of the voting employees, in the presence of 50% or more of the persons employed in the company. If the strike is classified as a strike being conducted in multiple companies, consent must be given by a majority of the voting employees in each company, in the presence of 50% or more of the persons employed in each company. 

There are no time limitations with respect to the length of the strike referendum. 

Generally, a strike can only be announced once: 

(i) the negotiations and mediation have ended; and 

(ii) a referendum has been held. 

A strike may not start until 14 days after the date of announcement of the dispute. A strike can be undertaken no sooner than five days after the date the strike is announced. 

The strike may be organised without negotiations and mediation being held in cases in which: 

• the employer uses unlawful measures to block negotiations and mediation (e.g. through obstinately prolonging negotiations/mediation); or 
• the employer has terminated the employment relationship with trade union activists managing the dispute. 

Strikes are voluntary. The striking employees retain the right to all social security benefits and entitlements under the employment relationship, except the right to salary. The period of the interruption in performance of work (i.e. period of the strike) is counted towards the total length of time of employment with a given employer. Employees not participating in a strike who do not agree to stop work due to the strike are entitled to remuneration for the period they have not worked due to the strike. 

There are no statutory time limitations for strikes. 

Strikes are forbidden in certain circumstances, such as in cases when human life and/or health or the state’s security could be endangered because of such action. 

General background

The Polish social security system covers the following risks: maternity, age, sickness and disability. Furthermore, the Polish legal system provides for a system of support for the unemployed.

10.1. Social insurance contributions

Contributions’ components

According to Polish law, social insurance contributions are calculated on the basis of the income of an employee received from the employer (“calculation basis”) are expressed in the form of a percentage rate, and are deducted from an employee’s salary each month.

The social security scheme consists of:

• retirement (pension) insurance amounting to 19.52% of a calculation basis (covered in equal parts by the employer and the employee);
• disability insurance amounting to 8% of a calculation basis (covered in different parts by an employer – 6.5 % and an employee – 1.5%);
• sickness insurance amounting to 2.45% of a calculation basis (covered solely by an employee);
• accident insurance amounting to 0.40% – 8.12% of a calculation basis (covered solely by an employer);
• health insurance amounting to 9% of a calculation basis (covered by an employee).

In addition, the employer must pay contributions to the Labour Fund of 2.45% of the calculation basis and to the Guaranteed Employee Benefit Fund amounting to 0.10% of the calculation basis. These contributions are paid by the employer on top of the gross salary.

10.2. Retirement age

Different for men and women

The retirement age in Poland is currently 65 for men and 60 for women.

10.3. Calculation of a pension

Employees born before 1 January 1949

For employees born before 1 January 1949, the pension is calculated on the basis of the average contributions for the period of ten consecutive years (as chosen by the employee) from a 20-year period preceding the year of submitting an application for the payment of a pension. Alternatively the employee can choose any 20 calendar years.

Employees born after 31 December 1948

In the case of employees born after 31 December 1948, the pension is calculated on the basis of the total amount of contributions collected on the individual pension account of the employee up until the end of the month preceding the payment. This amount is increased by the “initial capital”, which is a hypothetical amount that has been collected by a given employee before 31 December 1998 where the transition from the old to the new pension system took place. 

10.4. Private pension arrangements

Reform of the state pension system in 1999

In 1999, Poland introduced a pension system reform based on a three-pillar system. The first pillar is a reformed pay-as-you-go system, with pensions more closely related to the contributions collected by an employee, managed by the Social Insurance Institution (ZUS).

Second pillar – pension funds

The second pillar is a funded system whereby the insured person contributes to any one of the open pension funds of the individual’s choice. Each of these is managed separately by a pension fund society.

Third pillar, (e.g. individual pension accounts, employee pension schemes)

The third pillar consists of other forms of saving money (e.g. individual pension accounts, company pension schemes, etc.). 

New mandatory pension scheme

Employee Capital Pension Schemes (PPK) are new mandatory pension schemes. PPK is mandatory for employers and voluntary for employees. The scheme covers all workers who are between 18 and 55 years old. Workers who are at least 55 but less than 70 can voluntarily join the pension scheme. The default option is participation in the plan, but anybody can opt out of the scheme. The new scheme is based on the cooperation of employers and employees. The employer’s contribution is 1.5% of the employee’s remuneration, with the possibility of an additional voluntary contribution of 2.5%. The employee’s contribution is 2% of the employee’s remuneration, with the possibility of an additional voluntary contribution of 2%.  

10.5. Unemployment benefits

General areas of activity

The Polish legal system provides for a support system for the unemployed. This mainly consists of unemployment benefits and training programmes, which aim to help individuals gain new qualifications and find new employment.

Unemployment benefits

In 2023, unemployed persons having at least five years of employment history and who have worked for at least 365 days in the preceding 18 months and providing there is no alternative activity for them to undertake, receive a monthly benefit of PLN 1,491.90 gross monthly for the first 90 days of having the right to the benefit, and PLN 1,171.60 gross monthly for the following period. 

Funding the unemployment schemes

Employers pay contributions to the Labour Fund of 2.45% of the calculation basis for social security contributions.