Employing a Worker in Poland
Its central location, young skilled talent, and membership to the European Union (EU) are just some of the reasons businesses are expanding into Poland. In this post, we provide information on employing a worker in Poland.
Capital GES created this postcard series to help businesses that are considering expansion and hiring global staff. In this postcard series, we provide helpful tips on international employment. Below, we answer the most common questions asked in relation to employing a worker in Poland.
For businesses looking to enter the European market, Poland is a great place to start. Its central location, young skilled talent, and innovativeness are some reasons why businesses have decided to expand there. Over the last decade, business environments in Poland have been improving, and its economy is now the 10th largest in the EU. Additionally, Poland is very open to foreign direct investment and continuously builds incentives to grow in a number of sectors, including finance, IT, and logistics. As with all members of the EU, Poland offers businesses access to the EU single market of over 450 million customers as well as a large domestic market.
Employing a worker in Poland – Employment Laws to know
However, setting up a foreign entity in Poland is a time-consuming and costly affair. So, it is best to seek the right advice before expanding your business and employing staff in Poland. Below, we look at the most common questions asked by clients regarding employment law in Poland. Below we discuss several key points on employment law and statutory benefits that international companies may need to know when considering employing a worker in Poland.
1. Medical Tests
In Poland, all employees require a mandatory medical examination before beginning work. This medical exam is to confirm that there are no health reasons blocking the person’s employment in a certain position.
Can I trial a worker using a fixed-term employment contract, as I am not sure whether it will work out in the long-term?
Yes, fixed-term contracts are permitted, however there must be a valid reason for its use. In Poland, fixed-term contracts may be extended twice and for a maximum of 33 months.
Probationary employment has been designed for employers to find out whether the employee will work out. The probation period usually is concluded in the form of a fixed term contract for a maximum period of three months.
To ensure your worker stays fully compliant in Poland, it is best to discuss your contract options with a local partner.
3. Termination Rules and Costs
What do I need to know about termination and severance pay in Poland?
In Poland, the notice period varies depending on the length of employment. If employment lasts less than six months, a two-week notice period is required. For workers employed over three years, the notice period is three months. The notice must be given by hand to the employee or sent via registered post. The notice period starts when the employee receives the letter.
Termination costs and rules
Contracts must be terminated in written form and in the Polish language. All terminations must be justified. Severance pay is due depending on the length of employment and the reason for the termination (on the employer side). As seen above, terminations and severance pay can be complex in Poland. So, before you decide to terminate an employment relationship, it is best to discuss the options with a local partner.
4. Statutory Benefits
What are the statutory employee benefits in Poland?
Statutory paid holiday
In Poland, the amount of holiday entitlement depends on the employee’s seniority, and includes periods for previous employers and periods of education. Workers employed for fewer than 10 years are entitled to 20 days paid annual leave. Furthermore, those who have been employed for 10 years or more will be entitled to 26 days of paid leave.
In Poland, mothers can combine maternity and parental leave for 52 weeks. Mothers are entitled to 20 weeks paid leave with six weeks taken before birth and the final 14 weeks after birth.
Mothers can choose to have this payment of 20 weeks at 80% or 100% of their earnings. This choice affects payments during parental leave. The payments are made from the Social Security Fund and there is no contribution from employers.
Fathers in Poland are entitled to two weeks basic paternity leave within the first year of the baby’s life. Paternity leave is paid from the Social Security Fund. Similar to maternity pay, there is no contribution from employers.
Employees are entitled to unpaid leave for the purpose of taking care of the child, from the end of the maternity leave until the child reaches the age of six. Either parent is entitled to take the leave, but only one parent may take the leave at any time. During parental leave, the employee may receive a social security benefit.
Employees are entitled to 32 weeks paid parental leave in Poland. This leave can be taken by either parent. Certain rules apply when taking leave. The parents must decide during the three weeks after their child’s birth whether they want to use the parental leave directly after the maternity leave.
If the mother chooses to take the 100% payment option during maternity leave, any parental leave taken afterwards will be paid at 100% for the first six weeks and at 60% for the remaining 26 weeks.
If the mother chooses the 80% option (i.e., an option of the joint maternity and parental leave), this will also be paid at 80%.
In Poland, the first 33 days of sick leave are paid by the employer up to 80% of their regular salary. From the 34th day, sick leave is paid by Social Security to a maximum of 182 days, or in some cases up to 270 days.
How Capital GES Can Help You Expand and Employ Workers in Poland
If you are a business that is looking to expand internationally and employ workers in Poland, Capital GES can help.
Capital GES provides many employment services such as managing the worker’s onboarding, HR, payroll, and taxes. To establish what services you require, contact us at email@example.com or phone +41 32 732 9700, and a member of our team will be in touch.