- Overview: Poland
- Global HR Compliance
- Global PEO and payroll
- Expand without a company set up
- Contractor vs. employee: which is better?
- Work permit for hiring expats via PEO
Global HR Compliance in Poland
Conducting business in Poland can be challenging if you need to hire a local workforce for your own company or your clients, with all in-country HR, legal and tax compliance requirements to meet. Acumen International’s innovative global employment solution takes the guesswork out of global compliance while helping you navigate the complexities and nuances of Polish labor legislation. As your global partner, we can handle compliant employee on-boarding in the country as well as manage their payroll and compensation, including mandatory and voluntary benefits on your company’s behalf. Acumen ensures that you stay fully compliant and avoid legal and financial risks.
There are numerous labor laws and regulations in Poland that pose HR compliance risks to international businesses, and they can be difficult to navigate for non-Polish companies. Make sure to note that your home country’s labor laws and regulations may not apply to Polish employees.
Common HR compliance risks to global employers include:
- a continually evolving in-country tax and social security system
- ubiquitous and highly active trade unions
- labor laws favoring the rights of employees over employers
- employee misclassification risks
You will need to study the country’s employment requirements for hiring, compensating and terminating your global employees compliantly. In order not to do it yourself, outsource it to Acumen International as your HR compliance partner in Poland and 190 countries we cover.
Acumen’s global employment and compliance solution was designed explicitly for companies like yours that want to conduct business in Poland but need help in navigating the complexities of workforce legal and HR compliance. With our Poland Employer of Record (EOR) solution, we make sure that your in-country and expat workers are in full legal compliance without your establishing an own legal business entity, even as new laws and regulations arise and existing ones evolve.
Polish labor law has its roots in the Constitution of 1997, and while many updates were made by that, mostly focused on worker rights, laws governing employer-employee relations are still evolving. In 2004, Poland became an official member of the European Union, and as such, employer HR compliance requirements must also meet the employment standards set forth by the EU.
In addition to complying with laws established by the Polish Constitution and the EU, global employers must be in full HR compliance with the following:
- International agreements that concern labor laws
- Local labor code
- Acts and secondary legislation defining employer and employee rights and obligations
- Provisions set forth in collective labor agreements and statutes governing employment relationships
Hiring Workers in Poland
Recruiting and hiring a legally compliant workforce in Poland without establishing a legal in-country corporate entity can be a gnarl of red tape that leads you in circles. Yet many businesses either need to get things up-and-running while they file corporate paperwork, or they want to test the Polish business waters before jumping into the deep end of the pool.
In either case, Acumen International has the perfect global employment and compliance solution to help your business hire and payroll Polish workers without concern for HR compliance risks.
***It is important to note that global workforce recruitment is not a standard service offered by Acumen International, but we can assist with your recruiting needs as a special on-demand arrangement.
Polish Laws Governing Discrimination
Discrimination in hiring is currently a hot topic on a global scale. While discrimination laws are nothing new, they are being expanded around the globe, especially post–COVID-19, to prevent unfair hiring practices on the part of local and global organizations. The real challenge for businesses is shouldering the onus of disproving allegations of discrimination, since anyone who feels they were unfairly passed over for a job opportunity is entitled to file a complaint.
Becoming entangled in a Polish discrimination lawsuit can cause problems for your company on multiple fronts:
- It can disrupt your business processes and undermine your growth strategy
- It can result in fines and penalties that cost you money, time, and headaches
- It can tarnish your company’s reputation, especially on social media and in online business review platforms
Polish anti-discrimination laws are established to ensure that employers respect the dignity and personal rights of employees, and provide equal rights for equitable performance of the same job duties. In particular this applies to the equal treatment of male and female employees. In addition, employers may not discriminate in hiring on any of the following grounds: sex, gender or sexual orientation, age, disability, religion or religious denomination, race, nationality or ethnic origin, political beliefs, trade union affiliation, etc.
Polish labor law also prohibits harassment or bullying of employees on the part of the employer or of other employees in the workplace. It further requires that employers accommodate physically challenged or disabled employees.
It is common in Poland for employers to implement their own specific anti-discrimination policies in addition to those covered by the Labor Code.
Hiring and Compensating Polish Employees
There are numerous in-country nuances and restrictions on the employment process in Poland. For one thing, the extent to which employers can conduct background checks is strictly regulated in the Polish Labor Code and in other acts concerning certain job positions.
Background Checks for Polish Employees
Employee background checks are restricted by the Labor Code and by Polish data privacy laws. In general, Polish law does not allow employers to run background checks on employees, including criminal records or credit checks, unless specific types of jobs are involved. The Labor Code specifies that the only personal data employers can request are date of birth, education, residence address, previous employment and parents’ names.
Employment Agreements in Poland
Polish Labor Code provides for three types of employment agreements:
- Employment contract for a trial period, limited to three months, after which the employee will either be terminated or become an unlimited term employee.
- Employment contract for a fixed term, with a pre-defined date or event for termination of labor.
- Employment contract for an unlimited term, where the employee is hired for a permanent full-time position.
All employment agreements are concluded in writing, and they must clearly outline the terms and conditions of employment, including:
- Date of agreement
- Parties involved
- Contract type (trial, fixed term or unlimited)
- Type and venue of work
- Remuneration for work performed
- Working hours
- Date of employment commencement
Part-time employees are entitled to the same employment conditions and terms as full time employees performing identical or <similar work.
To learn more about Acumen’s global employment and compliance solution for international employers in Poland, request a quote today, or ask our team of worldwide experts a question. Acumen is here for you 24/7, no matter what time zone you’re in.
Fixed Term vs Indefinite Term Contracts
In Poland, a fixed-term employment contract ends on an agreed-upon calendar date or when a specific event, such as the conclusion of a project, occurs. Fixed term contracts can be renewed between the same parties up to three times, but the total duration of employment may not exceed 33 months.
Except for time limitations, Polish Labor Code does not distinguish between the fundamental principles of employment contracts, whether they be fixed term, trial or indefinite.
Transfer of Undertaking Compliance
Many employment regulations in the EU and in Poland are designed to protect workers and their families from financial hardships. In particular, The Acquired Rights Directive (ARD), also known as TUPE (Transfer of Undertakings, Protection of Employment), aims to mitigate hardships when employees change jobs to work for a new company. The directive stipulates that the terms of a Polish employee’s work contract are automatically transferred to their new position at another company. International employers need to be mindful of TUPE requirements when onboarding new hires.
Employment Termination in Poland
Employment contracts in Poland can only be terminated on grounds outlined by the Labor Code, and other grounds for termination cannot be established.
Grounds for termination are considered valid when:
- Both parties agree to termination
- One party issues a notice of termination that includes the reason for termination
- Immediate termination is made without notice due to employee misconduct, including gross violation of job duties, commission of a crime that impacts the employment relationship, or loss of necessary authorization, such as termination of a work permit or visa
Dismissal of certain categories of employees may require the employer to provide severance pay. Appeals for wrongful termination can be filed with a labor court within 21 days of the employee receiving notice.
In addition, certain protections have been put in place in Poland to thwart employee layoffs during the COVID pandemic. Social distancing protocols have disrupted normal business operations, and some businesses have been forced to close their doors completely, at least temporarily. New regulations imposed by the pandemic bring with them a plethora of new requirements that employers need to satisfy.
To remain compliant with evolving requirements, outsourcing your company’s HR management to Acumen International is a smart move. Our team of global employment experts works tirelessly to keep pace with local and national legislative changes in Poland. Partnering with Acumen ensures that your company remains compliant in turbulent times.
Polish Employee Benefits
The Polish Social Insurance system provides for mandatory pension, disability, health and accident insurance. Contributions are calculated by percentage and made by both employer and employee. It is the responsibility of the employer to calculate the amount of contributions to be withheld from the employee’s income and paid to the Social Insurance Agency.
Social insurance contributions cover employee sick benefits, maternity benefits, compensation benefits and funeral allowance. They also cover damages paid for bodily on-the-job injuries. Employees also have free access to public health care centers.
Other mandatory benefits include:
- Uninterrupted paid holiday leave of 20-26 days, depending on length of employment
- Maternity and paternity leave
- Sick leave of up to 33 days per year
- Disability leave of 10 additional paid holidays per year
- Mandatory retirement pension at age 60 for female employees and age 65 for male employees
Acumen International: Your HR Compliance Partner in Poland
Partnering with Acumen International is a strategic business move for your company, to avoid possible HR compliance risks in Poland and in 190 countries around the globe. As your trusted partner for international expansion, we help you navigate the numerous in-country complexities that can arise surrounding on-boarding, payroll, and termination of your in-country workforce.
Expand your global operations into the Polish market, onboard your international talent, and manage them while remaining fully compliant with local regulations. Acumen International’s global employment and compliance solution ensures that all your Polish legal, tax and HR compliance obligations are met, so you can focus on growing your business.
Our team of global experts is always ready to assist you, no matter what time zone you’re in. Contact us today as your front line international HR compliance partner with hyper local expertise in 190 countries worldwide, and learn how easy it can be to expand internationally with Acumen’s convenient and affordable global employment solutions.