Employment Law

Polish Employment Contract

When hiring employees in Poland, it is important to write up a formal employment contract for each employee and submit it to the Social Security Office at least one week before the contract starts.

The contract should include all relevant details such as wages/salaries, vacation and sick leave, etc. and should be written in Polish and the currency is PLN.

Fixed Term (maximum term: 33 months)

Indefinite

Polish Working Hours

The normal maximum working hours in Poland are 40 hours per week and no more than 8 hours per day. If employees exceed this standard, they will need to pay overtime. Overtime pay in Poland ranges from 150% to 200% of regular wages, or equivalent time can be provided to employees in future paid leave.

Holiday Policy

Poland Vacation

The length of Polish holiday to which an employee is entitled depends on the length of time they have worked (or received education) in the country. Employees with less than ten years of service are entitled to 20 days of paid leave. For more than 10 years, the allowance increases to 26 days. Unused vacation can be carried forward for up to three years.

Polish Sick Leave

Employees in Poland can legally enjoy at least 33 days of paid sick leave as long as they present a valid medical certificate, with the expenses during this period being paid by the employer. For longer absences, the government pays all costs.

Parental Leave in Poland

Employees in Poland are entitled to paid parental leave, with the costs borne by the government rather than the employer.

The standard leave for the birth of one child is 20 weeks, but if 5 or more children are born at the same time, the leave may be up to 37 weeks. The mother must use it for at least 14 weeks after delivery, but can choose to return to work after this period if she wishes, allowing the father to use the remaining time.

The father can take two weeks' leave, but it must be taken before the child turns two.

After the first leave, parents can take 32 weeks of parental leave separately or simultaneously. In addition, employees who have worked for more than six months can take up to 36 months of unpaid leave, which must be taken before the child turns six.

Polish Taxes

Employees and employers in Poland are required to spend a certain percentage of their wages on social benefits. These contributions cover pension funds, health insurance, workplace accident insurance and more. Employees are usually required to contribute approximately 14% of their salary, while employers must contribute up to approximately 18%.

Personal income tax rates in Poland range from 17% to 32%, depending on income.

The corporate tax rate in Poland is generally 19%.

Health Insurance in Poland

Health insurance is part of the social welfare contributions paid by employers and employees. Private health insurance is not required, but some employers choose to offer it as part of their benefits package.

Dismissal and Severance in Poland

An employment contract can be terminated at any time if both the employer and employee agree. Otherwise, a notice period must usually be given. For fixed-term and indefinite-term contracts, the notice period is two weeks if the period of employment is less than six months, one month if the period of employment is between six months and three years, and one month if the period of employment is between six months and three years. Between six months and three years, the notice period is three months. Employed for more than three years.

For companies expanding overseas for the first time, dealing with employee layoffs and dealing with severance packages can be complicated. Remoly's Polish PEOs can reduce risks for foreign companies and provide guidance during the process.  

Salary and Benefits

Polish Compensation Law

The minimum wage in Poland is PLN 2,600 per month, but is expected to rise to PLN 3,000 per month by 2021.

Welfare Administration in Poland

Setting up a benefits system for the Polish workforce can be difficult and complex if you are not familiar with the country, its customs and employment laws. Standalone setup can take weeks and may cause unexpected delays.

Remoly can simplify your Polish benefits administration. Our Polish experts can handle everything for you, helping you focus on a successful expansion.