Poland has rapidly become a prime location for conducting business and its economy have risen substantially over the past two decades. It has numerous thriving industries, an increasingly educated labor force, and an abundance of opportunities.
A diverse economy based on the service and manufacturing sectors, along with a strong trading position, makes Poland a desirable location for global expansion.
Poland’s labor force is quickly expanding and professionalizing as a result of the school system’s continued enhancements and a number of new initiatives designed to encourage labor participation. In addition, Poland’s forward-thinking strategy has produced a mature market and a highly diverse economy that has been continuously expanding for years.
With Poland as its primary trading partner and well-developed linkages to the rest of Europe, Poland is an excellent launching pad for expansion with the global employment organization.
Employing, Negotiating, and Conducting Business in Poland
The recruitment and onboarding procedure in Poland is comparable to that of the rest of the European Union, with the exception of a few key differences. Since 2004, Poland has been an EU member; however, it has not yet joined the EU’s Monetary Union. However, the native currency is indeed the Polish Zloty (PLN).
When negotiating the conditions of an employment contract with an employee in Poland, it may be helpful to keep the following in mind.
Employment contracts must be signed and registered with the Social Security Bureau no later than seven days prior to the commencement of employment. Registering with the authorities includes a range of distinct declarations and forms in addition to signed documents. Contracts must be drafted in either Polish or English and contain at least the following provisions:
1. Parties pertinent to the agreement.
2. Length of the agreement
3. Execution date (i.e., when it was signed)
4. Terms and conditions of employment.
For quick payroll cost calculation in Poland by Global Employment Organization Acvian please use our payroll estimator.
There are three possible forms of employment contracts in terms of duration:
- Short-term (“trial contract”), which may consist solely of a probationary period (up to 3 months)
- Non-renewable for up to 33 months (renewable up to 3 times)
- Indefinite (“open-ended”)
(Probationary periods may be a part of both fixed-term and indefinite contracts)
Additionally, an employer must provide the following information to the employee in writing within seven days of the date of contract execution (if not previously included in the contract):
- Working hours
- Payment frequency
- Annual leave benefits
The standard service hours are 8 hours per day and 40 hours per week. Anything that extends the accepted working hours is considered “overtime” and must be authorized by the supervisor. The law stipulates that annual overtime cannot exceed 150 hours. Depending on where the overtime occurred, overtime is compensated based on an allowance plan (50–100 percent of the gross compensation on top of the daily salary) or with extended leave time.
Employees are entitled to 20 to 26 paid vacation or holiday days (depending on tenure). Depending on all periods of employment and education, tenure is termed “tenure” (not just current employer). Workers with less than 10 years of service are entitled to 20 days of leave, whereas those with 10 years or more of service are eligible for 26 days. It may be carried over to the following calendar year if not used (there is a carryover period of up to 3 years). This leave allotment provides four sick days on demand.
- New Year’s Day
- Easter Sunday
- Easter Monday
- Constitution Day
- Labor Day/May Day
- Corpus Christi
- All Saints’ Day
- Assumption Day
- Christmas Day
- Independence Day
- Boxing Day
Employees are also entitled to additional “certified” paid sick leave for chronic illnesses (i.e., it requires a formal statement from a doctor). In this circumstance, the contractor is liable for up to 33 days of sick pay (anything additional is paid for by the Social Security Bureau).
Poland’s Maternity/Paternity Leave
In Poland, the Social Security Bureau (ZUS) pays for maternity and paternity leave:
The duration of maternity leave varies according to the number of children born in a single birth. In the event of giving birth to five or more children, the maximum length is 37 weeks, whereas the greatest length for giving birth to one child is 20 weeks. After using at least 14 weeks of maternity leave following childbirth, a female employee may waive the remainder of her leave. In this situation, the unused portion of the maternity leave must be used by a male caregiver.
A male employee is entitled to two weeks of paternity leave before the child reaches 24 months of age. It can be administered entirely at once or in two doses (each of the parts must be at least a week).
After taking maternity leave, an employee is entitled to parental leave for 32 weeks (in the case of giving birth to one kid) or 34 weeks (in the case of giving birth to multiple children) (in the event of giving two or more children). Both parents are eligible for parental leave and can use it concurrently. In such cases, the entire duration of the leave cannot exceed the aforementioned maximums (32 or 34 weeks).
A worker who has been employed for at least six months may take up to 36 months of unpaid leave for childcare purposes. The leave is granted prior to the child’s sixth birthday.
Employment contracts by EOR provider may always be canceled without penalty if both the employer (global employment organization) and employee consent.
Why indefinite contracts are more difficult to terminate because they demand justification and grounds (these reasons may be challenged by the employee in labor court if the employee does not agree with them)
- A minimum amount of notice is necessary for short-term and fixed-term contracts (reason and justification are not required)
- Notification periods are determined by the duration of the operation.
Conclusion on global employment organization choice
It is time-consuming, expensive, and complicated to establish a branch office or subsidiary in Poland in order to recruit a small team of employees. Strong protections for workers are provided by Polish labor legislation, which calls for careful attention to detail and an awareness of the most effective procedures in the local community. The process of expanding into Poland is made simple and uncomplicated by global employment organization Acvian. Without the difficulty of establishing a foreign branch office or subsidiary, we are able to assist you in hiring the candidate of your choice, managing HR-related issues and payroll, and ensuring that your business is in conformity with local legislation. You will have peace of mind with our Poland PEO and Global Employer of Record solution, which enables you to focus on running your business instead of worrying about administrative tasks.