Employment Contracts in Poland

A Comprehensive Guide to Employment Contracts in Poland
Hiring employees in Poland requires adherence to specific labor laws. Whether hiring directly or working with an Employer of Record in Poland, it’s vital to ensure that the employment contract is legally compliant. Here's a guide to help you draft a compliant employment contract in Poland.

1. When Does the Employment Contract Start?
In Poland, the employment contract becomes effective as soon as both the employer and employee agree to the terms. It is essential that the contract is signed before the employee begins work.
💡 Pro Tip: Make sure the start date is clearly stated in the contract to avoid confusion.

2. Key Components of a Poland Employment Contract
To comply with Polish labor laws, employment contracts must include the following components:
Job Title and Responsibilities: The contract should define the job position, role, and specific duties to avoid any misunderstanding.
Contract Type: In Poland, there are three types of employment contracts: indefinite-term, fixed-term, and trial period contracts.
Compensation and Benefits:
Salary: The contract should specify the salary, payment frequency (usually monthly), and any bonuses or incentives.
Benefits: Common benefits include health insurance, pension contributions, and meal allowances.
Working Hours: The standard working week in Poland is 40 hours, with 8-hour working days, typically from Monday to Friday.
Leave Policies:
Annual Leave: Employees are entitled to a minimum of 20 days of paid vacation per year.
Sick Leave: Employees can take sick leave, with compensation ranging from 80% to 100% of their salary, depending on the length of employment and the employee's health condition.
Parental Leave: Employees are entitled to 20 weeks of paid maternity leave and 2 weeks of paternity leave.
Termination Terms: The contract must outline the notice period for termination. For indefinite-term contracts, the notice period ranges from 2 weeks to 3 months, depending on the duration of employment.
💡 Why This Matters: A well-defined contract reduces the risk of disputes and ensures legal compliance.

3. Salary Structure in Poland
The salary structure in Poland typically includes several key components:
Base Salary: The main fixed salary paid monthly to the employee.
Bonuses: Employees may receive additional bonuses based on company performance or individual achievements.
13th Salary: Employees in Poland are entitled to an additional 13th-month salary paid in two installments each year (Christmas and summer).
Benefits: Additional benefits such as transportation allowances, meal subsidies, or health insurance.
💡 Key Takeaway: Clearly defining the salary and benefits package ensures compliance with Polish labor laws and helps improve employee satisfaction.

4. Legal Considerations: Protecting Your Business
a. Non-Compete and Confidentiality Clauses
Non-compete clauses in Poland are enforceable but must be reasonable in scope, duration, and geographical limitations. Confidentiality clauses are also often included to protect sensitive business information.
b. Statutory Contributions
Employers in Poland are required to make several statutory contributions, including:
Social Insurance: Covers pensions, health insurance, disability, and unemployment benefits.
Labor Fund: Employers contribute to a fund that helps support unemployed individuals and ensures health benefits for employees.
💡 Tip: Failure to meet these statutory obligations can result in penalties, so it is essential to ensure compliance.

5. Background Checks and Employee Protections
Employers may conduct background checks in Poland, including verifying criminal records, academic qualifications, and previous employment. However, they must comply with data privacy laws and obtain the employee's written consent before proceeding with any background checks.

6. The Importance of Written Contracts
In Poland, a written employment contract is crucial for clarity and legal protection. The contract must be signed by both the employer and the employee to be legally valid and protect the rights of both parties.

7. Why Partner with GlobainePEO?
Partnering with GlobainePEO in Poland allows you to simplify the hiring and compliance process. We can help you:
Draft and manage compliant employment contracts.
Handle payroll, tax filings, and employee benefits.
Ensure that all statutory contributions and legal requirements are met.

💡 GlobainePEO Advantage: As your Employer of Record in Poland, we take care of all the legal intricacies, allowing you to focus on growing your business without worrying about compliance.

Drafting compliant employment contracts is the foundation of successful business expansion into Poland. Partnering with a Poland EOR, like GlobainePEO, allows you to focus on your core operations while ensuring legal and administrative requirements are met efficiently.