Poland - League of Lawyers

Capital: Warsaw
Largest city: Warsaw
Official Language: Polish
Government: Unitary semi-presidential constitutional republic
Area: 312,696 km2
Population: 38,268,000
Currency: Zloty (PLN)
GDP total: PLN 5.082 trillion (USD1.363 trillion)
GDP per capita: PLN 134,074.66 (USD35,957)
Time zone: UTC +1/UTC +2
Calling code: +48
Internet TLD: .pl
[Source: Wikipedia]

The rate of people in the workforce: 57.9% (July 2022)
The general unemployment rates: 5.2% (June 2022)
[Source: www.tradingeconomics.com/]

Q&A on Employment Law

What are the laws and regulations governing employment, labour and industrial relations in Poland?
The sources of labour law in Poland are:
- The Constitution of the Republic of Poland which defines general principles of freedom to work and social rights
- EU-LAW in the scope of labour law and international agreements concerning labour law issues
- The Labour Code – the main source of labour law in Poland
- Secondary legislation:
  1. Act on promotion of employment and labour market institutions
  2. Act on minimum remuneration for work
  3. Act on social insurance system
  4. Act on employment of temporary workers
  5. Act on employee capital plans
- Provisions of collective labour agreements and other agreements, rules and procedures, and statutes setting forth the rights and obligations of the parties to the employment relations.
Which authorities and/or regulatory bodies enforce employment, labour and industrial relations laws and regulations in Poland?
The State Labour Inspectorate is a body supervising and controlling the observance of labour law, in particular the provisions and rules of occupational health and safety, as well as the provisions concerning employment and other gainful employment.Labour Offices carry out tasks within the scope of employment promotion, preparing analysis and evaluation reports on employment and combating unemployment in the region, developing regional programmes that follow regional development strategy and defining the regional social policy.
What are the main employment requirements under the employment laws and regulations in Poland that employers should be aware of?
The Labor Code has fairly rigid requirements when it comes to the content of an employment contract. Employment contracts cannot be less advantageous to the employee than the Labour Code and secondary regulations issued thereto provide. An employee can be employed for a definite or indefinite period of time. A non-competition clause will have to be recorded in writing. Foreign employers are allowed to hire employees directly but the social security contributions have to be paid in Poland. The minimum hourly wage (22,80 PLN from 1.1.2023 shall apply not only to employment, but to contracts of mandate and other forms of employment regulated by civil law as well.
What are some of the employment rights and benefits to which employees in Poland are entitled to by law?
The employee has the following rights, among others:
- the punctual and complete payment of wage by the employer
- continued payment of wages in the event of incapacity for work or during holidays
- a minimum number of days’ holiday per year
- maternity leave (at least 20 weeks)
- parental leave (at least 32 weeks)
- protection against discrimination and sexual harassment at the workplace
- compliance with occupational health and safety requirements.
What are the procedures and requirements to employ foreign persons and expatriates in Poland?
The legal basis is the Foreigners Act (ustawa o cudzoziemcach). Non-EU foreigners may be employed if they stay legally and have a work permit, unless not required, or have temporary residence and work permit or a temporary residence permit in order to perform work in a profession requiring high qualifications.A qualified skilled worker can be granted a residence permit for employment, if there is an employment contract or a firm job offer and the skilled worker has a qualification recognised in Poland.

EU citizens enjoy the free movement of workers and do not need a residence permit nor a work permit.
What are the common reasons that employers rely on to terminate employment contracts?
The employment contract may be terminated in Poland with or without notice (disciplinary dismissal) or by mutual agreement. Termination of an employment contract by the employer must always be justified. The reason for termination must be real and understandable to the employee. Only termination of the employment contract by mutual agreement may be without justification, but in this case the employee must agree to it.
How do employees terminate employment contracts? Are employees strictly required to fulfil the termination notice period (if any)?
An employee may terminate an employment contract by giving up to three months’ notice (unless the contract provides for a longer notice period). An employee may also terminate an employment contract without notice if the employer has committed a grave breach of fundamental duties towards the employee.
What employment dispute resolution forums are there in Poland and what are their respective jurisdictions/purpose?
The main dispute resolution forum is the labour court. In recent years, mediation in labour law cases has gained popularity. Mediation can be conducted both before the case is brought to court or after the proceedings have been initiated on the basis of a court decision to refer the case to mediation. In collective labour law cases, there are also numerous courts of arbitration, whose arbitration awards are legally binding on the parties and can be declared enforceable in state courts.
What are the laws governing trade unions and collective agreements in Poland?
According to the Constitution, the Republic of Poland guarantees the freedom to form and operate trade unions and the freedom of association. The operation of trade unions is regulated in detail in a number of acts, primarily the Labour Code, but also in the Act on Trade Unions, Act on the Resolution of Collective Disputes, Act on Informing and Consulting Employees, Act on European Works Councils etc. In the scope of trade union regulations in Poland there are also acts of international law and acts of European Union law.A collective agreement is a contract between one or more trade unions and an employers’ association or an individual employer, further specified in articles 239 – 14113 of the Labour Code. Furthermore the Act on Trade Unions and the Act on the Resolution of Collective Disputes also refer to collective agreements.
Must a trade union be registered in Poland? If yes, what is the procedure for it to be registered?
A trade union must be registered in the National Court Register. In order to form it, ten employees are required to establish a labor union by resolution. A trade union must meet the following criteria:
- democratic organisation (elections and co-determination)
- promotion and protection of working conditions as a task
- voluntary association
- organisational, financial and personal independence from third parties
- collective bargaining capacity (assertiveness, social power, willingness to strike)
What are the key elements to be incorporated in a trade union agreement?
A collective agreement is an agreement between an employer (or employers’ organisations) and trade unions. The provisions of collective agreements are one of the sources of labour law. The purpose of the agreement is to define mutual rights and obligations of the parties to the employment relationship. Usually it consists of extending the rights of employees in a strictly specified way beyond the norms expressed in other sources of labour law (e.g. the Labour Code). An important function that a collective agreement has from the employee’s point of view is the prevention of worse conditions than those arising from the provisions of the Labour Code.The trade union agreement should contain provisions defining the conditions to which the content of the employment relationship should conform. Additionally, the trade union agreement should define mutual obligations of the parties to the agreement. It may also regulate other matters, which are not regulated by the provisions of the labour law in a mandatory manner.
What trade union dispute resolution forums are there in Poland?
Alternative dispute resolution forums are not popular in Poland. Employee cases are mostly resolved through labour courts or in general mediation. Within large workplaces, trade unions mediate conflicts between employers and employees.NSZZ „Solidarność”, All-Poland Alliance of Trade Unions (Ogólnopolskie Porozumienie Związków Zawodowych) and Trade Unions Forum (Forum Związków Zawodowych) are the main trade union dispute resolutions forum in Poland and members of the Council for Social Dialogue at the same time.

According to data provided by the Statistics Poland (Główny Urząd Statystyczny, GUS) for the year 2014, and by the Public Opinion Research Centre (Centrum Badania Opinii Społecznej, CBOS) for the year 2017, members of trade unions accounted for 11% of all working persons.
When an employee’s wages are unpaid by the employer, what legal options are available to the employee?
Lack of payment of the salary is a violation of the basic employer’s obligation. The employee can submit a complaint to the State Labour Inspectorate, which will carry out an inspection. Furthermore, the employee can fill a claim before the labour court demanding the payment.The employee is entitled to claim interest on the unpaid salary. The employer must therefore compensate them for any tax disadvantage. In principle, the employer must compensate the employee for any damage suffered as a result of the employer’s failure to pay the salary on time. In the event of prolonged non-payment of wages by the employer, the employee may terminate the contract without notice.
What are the types of dismissal cases in Poland?
There are three types of termination:
- Ordinary termination: An employment relationship for a definite or indefinite period of time is terminated on specific dates and subject to specific notice periods.
- Extraordinary termination: Involves terminating the employment relationship with immediate effect upon an important reason for the termination. The notice periods do not need to be observed.
- The collective dismissal is a situation whereby an employer plans to dismiss, within a maximum of 30 days, at least: 10 employees if the company employs 20 to 99 employees; 10% of the workforce if the company employs 100 to 299 employees; 30 employees or more if the company employs 300 employees or more.Collective dismissals can be justified on economic reasons, business profile changes, liquidation of the workplace, or other valid reasons unrelated to the employees.
What factors are taken into account when determining the types of dismissal cases in Poland?
1. Ordinary terminationTermination of an employment contract by notice requires the employer to indicate the reason for the termination. The reason for termination must be: well-founded, specific (and therefore understandable to the employee and cannot be too general), true (it cannot be hypothetical, it must actually occur or be future but certain and is to occur in the near future).
  Examples of reasons for termination: undertaking activities that compete with the employer, liquidation of a job position, frequent absences of the employee from work even beyond his control, lack of care, diligence in the performance of employee duties. From the notice of termination, the employee has the right to appeal to the labor court within 21 days from the date of receipt of the letter from the employer.
2. Extraordinary terminationThe Labour Code lists three reasons for immediate termination due to employee misconduct. The list is exhaustive. The employer does not have to exercise the option should he decide that the employee’s faulty behaviour makes it possible to continue employing such an employee.
  The reasons are:
  - serious violation of the employee’s basic employee duties;
  - the employee committing a crime during the employment relation which makes it impossible to continue the employment relation;
  - the employee, through his/her fault, has lost his/her authorisations which are necessary for him/her to perform the work at a given position
3. Collective dismissal is to be based on structural, technological, economic reasons. The employer must inform, meet employee’s representatives and reach an agreement with them on the scale, timetable and effects of the prospective redundancy. Dismissed employees are entitled to compensation according to length of service and basic remuneration.
When an employee has been unfairly dismissed, what legal options are available to the employee?
The employee can question whether the employment contract termination complies with the law and may file one of the following claims against the employer in a labour court:
- to be reinstated at work (and if the notice period is still running – for the termination notice to be declared ineffective) and for pay for the time spent not working (usually limited to 3 times the monthly salary),
- for compensation.
An employee can only demand compensation if he/she was employed under a term employment contract, i.e. a trial period contract, or a fixed term contract.
What is the limitation period imposed on employees to commence a legal action against the employer?
Most types of employment notices can be appealed and the appeal should be filed with a competent labour court within 21 days from the delivery of the employment termination notice.
When an employee decides to take legal action against the employer, what are the steps to observe and comply with?
The employee can demand a ruling stating ineffectiveness of the termination of employment or reinstating him/her at work on previous terms or a payment of damages. The labour court may reject the employee’s demand to declare the notice of termination ineffective, or to reinstate the employee in a job, if it determines that the demand is impossible or pointless; in such a case the labour court awards compensation.In the event of terminating an employment contract effective immediately, which took place with a violation of current provisions of law, the employee is entitled to a claim for reinstating him/her at work or for damages.

The Labour Code allows for an appeal against a defective employment notice only by the employee. If the employee fails to appeal against the received statement, the statement shall have the effect of terminating the employment contract.
When taking legal action against the employer, can an employee represent himself?
Yes, there is no obligation to be represented by a lawyer.
What happens if an employee’s death takes place before the completion of the legal action filed by the employee?
The heirs of the deceased are entitled to the employees laims and can continue the proceedings.If a party dies during the pending civil proceedings, the court will obligatorily suspend the proceedings. Resumption of proceedings shall take place as soon as the reason for the suspension is no longer applicable, i. e. when the legal successors of the deceased come forward or are identified or when a curator is appointed.
Does the aggrieved party have a right to appeal against the decision? If yes, is there a limitation period to file for an appeal?
If the court decision was issued by the district court in the first instance, the appeal must be filed with the regional court. On the other hand, an appeal against the judgement of the regional court, which ruled as a court of first instance, must be filed with the appellate court. It is important to remember that an appeal is always filed through the court which issued the appealed decision.An appeal must be filed:
- within two weeks of the receiving of the reasoned judgement on the applicant;
- within 21 days of receiving the judgement where the applicant has not requested a statement of reasons.
Is there any alternative dispute resolution available? If yes, what are the key differences between the alternative dispute resolution and a suit filed in court?
In Poland, mediation is a frequent mean of resolving disputes between employers and employees. The labor court may refer a case to mediation with the consent of the parties, or the parties may choose to do so themselves. Mediation is conducted in Poland by professional mediators, at the end of which a settlement agreement is signed, which is then also recognized by the labor court. Mediation often speeds up and facilitates the end of a dispute, as it is less formalized.

ABOUT THE AUTHORS

Dr. jur. Jan Muszyński
Attorney at law in Poland, Von Zanthier & Schulz

Jan Muszyński graduated from the Adam Mickiewicz University in Poznań with a degree in law in 2012. After graduation, as a scholarship holder of the Konrad Adenauer Foundation, he received a doctoral degree in law at the University of Bayreuth. His doctoral thesis was published by the prestigious Berlin publishing house Duncker & Humblot. He has been working with the law firm VON ZANTHIER & DACHOWSKI since 2019, specializing in providing ongoing advice to entrepreneurs especially in the areas of labor law, corporate law, including M&A transactions and business law.

ABOUT THE FIRM

Name: Von Zanthier & Dachowski
Address: Von Zanthier & Dachowski Kancelaria Prawnicze sp. k.ul. Garabry 56, PL 61-758 Poznan
Telephone: 0048 61 85 82 550
Email: poznan@vonzanthier.com
Website address: www.vonzanthier.com
Key contact: Dr. jur. Jan Muszyński, Lawyer, muszynski@vonzanthier.pl
Established: 1995
Number of lawyers:
Languages: German, English, Polish, Russian, French

Brief description:
We are an interprofessionally organised law firm of solicitors, auditors and tax consultants with offices in Berlin, Poznań and Warsaw. We offer consultancy services in Germany in the field of German business and tax law and can assess your economic situation. Since 1992, we have been dealing with international matters and guiding you in national and cross-border law. In Poland, we can support you with Polish business and tax law.

Key practice areas:
Commercial law, Corporate law, Real Estate law, IT law, Labor law, Law on Renewable Energy, Medicine law, Tax law and Bookkeeping