Understanding Employment Norms in Poland: A Comprehensive Guide
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Hiring in Poland? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Poland.

Employment Norms in Poland

Poland, or the Republic of Poland, is a Central European country. The country is known for its striking landscape with the Baltic Sea on one side and snowcapped mountains on the other. It holds the position of one of the top-performing economies in Europe. Poland attracts investors worldwide with its flourishing economy and lenient employment laws. It is in the 'very easy' category of the 'ease of business doing' index.

General Information:

  • The Polandian currency is the Polish zloty (PLN).
  • Warshaw is the capital of Poland.
  • Polish is the official language of Poland. Documentation can be in Polish or can be translated into another language if required.
The labor laws in Poland protect employees from discrimination or harassment in the workplace. It oversees minimum wages, leaves, social security, health benefits, etc.
Poland map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working hours and overtime
  • Leaves
  • Social Security
  • Taxes for employers
  • Taxes for employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words
Agreements

Agreements

The employment agreements in Poland must be in the Polish language. It can be translated into another understandable language if asked by the parties. The agreement must contain all the details of the employment terms.
There are three types of employment agreements:
  • Indefinite or Open-ended agreement: If an employment agreement isn't assigned otherwise, it is regarded as a permanent employment contract. It is the most widely used contract for hiring permanent employees.
  • Definite or Fixed-term agreement: One term of the definite contract may last up to 11 months. It can only be renewed three times. Even after renewal, the definite contract's overall length cannot exceed 33 months. The contract is assumed to be an indefinite one if the employee works longer than the specified fixed period.
  • Trial period contract: It is agreed to a maximum duration of 3 months.
Onboarding Process

Onboarding Process

The hiring process in Poland is as follows:
  • A job description is prepared by the HR teams. They collaborate with the unit that has a job vacancy.
  • The description is then uploaded on the official website of the company along with other platforms like LinkedIn.
  • Some companies may even publish job vacancies in local newspapers. The advertisement can remain for a couple of days to a week.
  • Candidates apply for the job by proving their eligibility. They are further shortlisted based on rounds of screenings and interviews.
  • Final shortlisted candidates then negotiate their terms and conditions with the employer. After the mutual agreement, the candidate is hired as an employee.
Visa

Visa

Poland has three types of visas:
  • Poland Schengen Visa: It is a short-term stay visa issued for 90 days duration. This type of visa is granted for tourism, business travel, etc.
  • D-type visa: It is a long-term residence visa. It is issued for a duration longer than 90 days. This type of visa is granted for employment, education, family reunion, etc. The family visa is valid for 2 years. The duration of a work visa depends on the type of work. The work visa is granted only after the employer submits the permit.
  • Transit visa: It is granted for crossing the country to reach another country.

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Minimum Wage

Minimum Wage

The minimum wage in Poland is fixed at 3490 PLN per month.
Payroll Cycle

Payroll Cycle

The payroll cycle in Poland is given monthly.
Annual Bonus

Annual Bonus

There is no legal provision for giving an annual bonus in Poland.
Health Benefits

Health Benefits

  • Health benefits in Poland include health insurance, sick leaves, etc.
Working hours and overtime

Working hours and overtime

  • Work hours: The standard work hours in Poland are 8 hours per day or 40 hours per week. The normal working week is of 5 days
  • Break: An employee is entitled to 15 minutes of break between regular work hours.
  • Overtime: Overtime in Poland must not exceed 8 hours per week and 150 hours each year. The employer has to pay 50% of the regular salary for overtime hours.
Leaves

Leaves

Sick Leave

  • An employee is entitled to 33 days of paid sick leave in Poland.
  • The leave is paid for by the employer.
  • If sickness continues after 33 days employees are paid from the social security fund.

Maternity leaves

  • A female employee is entitled to 20 weeks of paid maternity leave in Poland.
  • 6 weeks of leave must be taken before childbirth and 14 weeks after childbirth.
  • Employees can ask for an extended 6 weeks of leave with an 80% salary.
  • The maternity leave is paid by the employer.

Paternity leaves

  • A male employee is entitled to 2 weeks of paid paternity leaves in Poland.
  • The leave is paid by the employer.

Parental leaves

  • A couple can take up to 32 weeks of combined paid parental leave in Poland.
  • It must be taken within 3 weeks of childbirth and is paid by the employer and social security fund.

Annual Leaves

  • An employee is entitled to 20 days of paid annual leave in Poland for the first 10 years of service.
  • 26 days of paid leave is granted after 10 years of service.

Public Holidays (for the Calendar year 2023)

  • New Year's Day (1st January)
  • Epiphany (6 January)
  • Easter Sunday (9 April)
  • Easter Monday (10 April)
  • Labour Day (1 May)
  • Constitution Day (3 May)
  • Whit Sunday (28 May)
  • Corpus Christi (8 June)
  • Assumption Day (15 August)
  • All Saints' Day (1 November)
  • Independence Day (11 November)
  • Christmas Day (25 December)
  • 2nd Day of Christmas (26 December)

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Social Security

Social Security

  • Social security in Poland includes Pension, Social Assistance, Permanent Disability, Health cash, etc.
  • It also offers benefits such as Dependent Parent, Surviving Spouse Benefits, Orphan Benefits, Surviving Children Benefits, Occupational Medicine Preventive Examinations,
Taxes for employers

Taxes for employers

Employers in Poland have to pay the following taxes:
  • Pension Fund- 9.76%
  • Disability Insurance- 6.5%
  • Accident Insurance- 0.67 to 3.33%
  • Labor Fund- 2.45%
  • Bankruptcy Fund- 0.1%
  • Total Cost of Employment- 19.48 to 22.14%

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Taxes for employees

Taxes for employees

Employees in Poland have to pay the following taxes:
  • Pension Fund- 9.76%
  • National Healthcare- 9%
  • Sickness Insurance- 2.45%
  • Disability Insurance- 1.5%
Employees have to pay the following
  • Up to 120,000 PLN- (12% -3,600)
  • 120,000 PLN and above- (32% +10,800)
Probation

Probation

The probationary period in Poland is of up to 3 months

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Termination

Termination

The following scenarios can result in the employment relationship being terminated:
  • Resignation by the employee
  • Retirement age
  • Expiration or non-renewal of the job contract;
  • Employee dismissal for grave wrongdoing (such as theft, fraud, etc.);
  • The employee must get a notice period of 7 days before the termination.
Severance Pay

Severance Pay

  • An employee is entitled to severance pay in Poland upon invalid termination by the employer.
  • The employee gets:
    • For employment of under 2 years- 1 month's salary
    • For employment of 2 to 8 years- 2 months' salary
    • After working for more than 8 years- 3 months' salary
Employees or Contractors

Employees or Contractors

  • Misclassification of employees or contractors in Peru is a punishable offense.
  • If found guilty, a penalty of 1000 to 30,000 PEN may be imposed on the employer.
  • The company is obligated to cover any related interests and penalties on behalf of a misclassified employee.
  • The company may also have to pay taxes retrospectively on the behalf of the misclassified employee.
Final Words

Final Words

Poland is a Central European country with a scenic landscape. Its flexible employment rules and robust infrastructure development have enhanced its economy. Its flourishing economy is alluring to investors. For businesses looking to grow their entities, Poland can be a great choice.

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