BIP
Labour law
Each investor who wants to commence business activity in Poland and engage employees should comply with provisions of the Polish labour law, in particular with the Labour Code.
According to the Labour Code, the employment in Poland could be commenced based on:
- an employment contract, which is most commonly used,
- an election,
- an appointment,
- a cooperative employment contract.
Types of employment contracts
- For indefinite period
It is the type of employment contract that offers the employee the strongest legal protection and has no restrictions on the duration or number of contracts. An employment contract can be concluded at any time, either as a continuation of a probationary or fixed-term contract, or as a first contract. The notice period in this contract depends on the length of employment of the employee with the employer and lasts respectively 2 weeks if the employee has been employed for less than 6 months; 1 month if the employee has been employed for at least 6 months; 3 months if the employee has been employed for at least 3 years.
- For definite period
33 months is the maximum duration of this type of contract and as a rule it could be signed or extended only three times between the same Parties. The fourth agreement in a row is automatically converted into an employment contract for indefinite period.
- For trial period
This type of agreement usually precedes the abovementioned contracts as its aim is to confirm the qualifications, skills, and suitability for work of a new employee. It could be signed for a maximum period of 3 months. In some cases the Labour Code allows to conclude probe employment contract more than once between the same Parties.
Key Employee Rights
Minimum salary
- 4.242 PLN gross / month Minimum salary in 2024
Basic working time system
- 5-day working week
- 40 hours per week / 8 hours per day
* The Labour Code also provides for other systems which may be introduced, particularly in order to adapt the working time system to the specific business of the workplace.
Extra hours
- +50% in working days
- +100% at night
- +100% on Sundays and bank holidays
Days off work
- 20-26 vacation days per year (The exact number depends on the employee’s seniority)
- 13 bank holidays + Sundays
- Time off work (uninterrupted rest): 11 hours daily / 35 hours weekly
Apart from the Labour Code, employment relations could also be concluded based on civil law contracts, which allow the Parties for more flexible and individual arrangements.
Types of Civil-Law Contracts
- Contract of mandate
It entrusts the contractor to perform particular tasks or activities for the benefit of the ordering party (agreement of due diligence). 27.70 PLN gross is the minimum hourly rate for this type of contract in 2024. From a legal perspective, the contract of mandate is less formalised and cheaper for the employer than the employment contract.
- Contract of specific work
It obliges the contractor to deliver a defined result of work for the benefit of the ordering party in exchange for remuneration. It does not create an employment relation between the Parties, nor entitles the contractor to vacation, sick leaves, pensions, etc. However, they could freely decide when, where, and how much time they devote to perform the task.
B2B Contracts
Business to business - is a different type of cooperation. B2B contract is not covered by the provisions of the Labour Code and therefore all rights and obligations of employees/employers do not apply here.
- A person who concludes a B2B contract runs his/her own business, thus this person is treated as an entrepreneur who signs a contract with another entrepreneur and performs services under this contract.
- A person who establishes B2B cooperation is not an employee but only a contractor and the parties' relations are governed by the Civil Code.
- A contract is signed between the companies and each of them is responsible for their own settlements.
