Polish Employment Law Guide: What Every Employer Needs to Know

Poland has a detailed and structured labor law system designed to protect employees while setting clear obligations for employers. The foundation of this system is the Polish Labor Code (Kodeks Pracy), which governs contracts, working hours, employee rights, and termination rules. For international companies, understanding these laws is essential to avoid compliance risks and ensure fair treatment of workers.

Key Principles of the Labor Code

The Polish Labor Code is built on several guiding principles that shape every employment relationship. These include:

• Protection of employee rights – contracts must guarantee fair treatment and non-discrimination.
• Employer responsibility – companies are legally bound to provide safe working conditions.
• Equal treatment – men and women must receive equal pay for equal work.
• Right to rest – employees must be granted annual leave and adequate daily/weekly breaks.

Working Hours in Poland

The standard working time in Poland is 40 hours per week, spread across five working days. Employees typically work 8 hours per day, although flexible arrangements may be introduced if they comply with the Labor Code. Each employee must also receive at least 11 hours of uninterrupted rest per day and 35 consecutive hours of rest per week. Employers who fail to respect these rules may face inspections from the National Labour Inspectorate (Państwowa Inspekcja Pracy – PIP).

Overtime Regulations

Any work performed above the standard limit is considered overtime. Overtime must be justified by extraordinary needs of the employer, such as meeting deadlines or dealing with emergencies. By law, employees cannot exceed 150 hours of overtime annually, unless a collective agreement or company policy allows a higher cap. Overtime is compensated either with additional pay or time off in lieu.

Leave Entitlements in Poland

Employees in Poland are entitled to paid annual leave, the length of which depends on total professional experience:

• 20 days – for employees with less than 10 years of work experience.
• 26 days – for employees with 10 or more years of work experience.

Education is counted toward this calculation:

• Completion of secondary school adds 4 years.
• Completion of higher education adds 8 years.

In addition to annual leave, employees are entitled to public holidays (13 days annually), which are fully paid days off.

Sick Leave and Other Employee Benefits

Polish law guarantees employees the right to paid sick leave. During the first 33 days of illness in a calendar year, the employer covers 80% of the employee’s salary. Beyond this period, the Social Insurance Institution (ZUS) takes over payments. Pregnant employees and workers injured at work are entitled to 100% of their salary during sick leave.

Other statutory benefits include:

• Parental leave – up to 41 weeks combined for both parents.
• Maternity leave – 20 weeks (mandatory for mothers).
• Paternity leave – 2 weeks, available until the child reaches 12 months.

Termination of Employment in Poland

Termination of an employment contract in Poland must follow strict legal procedures. Contracts can be ended in three ways:

• By mutual agreement – both employer and employee agree to end the contract.
• By notice – initiated by either the employer or employee, with notice periods depending on seniority.
• Without notice – in cases of serious misconduct or when the employee grossly violates duties.

The notice period for indefinite contracts is linked to the employee’s length of service:

• Less than 6 months → 2 weeks
• 6 months to 3 years → 1 month
• More than 3 years → 3 months

Severance Pay and Protections

Employees dismissed for economic or organizational reasons may be entitled to severance pay, provided the employer has more than 20 employees. The amount depends on the length of service with the company:

• Up to 2 years → 1 month’s salary
• 2–8 years → 2 months’ salary
• More than 8 years → 3 months’ salary

Special protections apply to:

• Pregnant employees
• Employees on parental leave
• Employee representatives and trade union activists

Employer Obligations in Poland

Employers in Poland are legally required to provide a safe and compliant working environment. Their key obligations include:

• Health and Safety (BHP): organizing initial and regular training, providing protective equipment, and ensuring safe conditions at the workplace.
• Payroll and Taxes: correctly calculating and paying social security contributions (ZUS) and personal income tax (PIT).
• Documentation: maintaining employee files, contracts, and payroll records (may be digital since 2019).
• Equal Treatment: preventing discrimination based on gender, age, nationality, religion, or disability.

Failure to comply with these obligations may result in inspections and fines from the National Labour Inspectorate (PIP).

Employee Rights in Poland

Polish labor law strongly protects workers’ rights. Employees are entitled to:

• Fair pay for their work, including overtime compensation.
• Rest periods, including daily and weekly breaks.
• Paid leave, including annual leave, public holidays, and sick leave.
• Protection from unfair dismissal and guaranteed notice periods.
• Access to training and professional development opportunities.

These rights ensure a balance between employer flexibility and employee protection, which is central to the Polish labor market.

Foreign Employers in Poland

For international companies, hiring employees in Poland can be more complex than for local businesses. Foreign employers must either set up a legal entity in Poland or work with local partners to manage employment. Establishing a subsidiary gives companies full control, but it also involves high setup costs, ongoing accounting, and HR administration. Without a local presence, businesses may face limitations in directly signing employment contracts under Polish law.

Compliance Risks for International Businesses

Foreign employers often encounter compliance risks such as:

• Misclassification of workers (using contractors instead of employment contracts).
• Improper documentation (contracts not in Polish, missing employee records).
• Payroll errors (incorrect ZUS or PIT filings).
• Unfamiliarity with labor protections, leading to unlawful terminations or discrimination claims.

One way to reduce these risks is to use an Employer of Record (EoR) service. An EoR, such as Bizky, acts as the legal employer on paper, handling payroll, contracts, and compliance, while the foreign company manages daily tasks. This solution helps companies hire quickly and legally without setting up a subsidiary.

Collective Agreements in Poland

In addition to the Labor Code, many employers and employees are bound by collective labor agreements. These are negotiated between employers (or employer associations) and trade unions, and they can provide employees with better conditions than the minimum guaranteed by law. Collective agreements may cover issues such as working time flexibility, wage increases, or additional benefits.

Trade Unions and Employee Representation

Trade unions play an important role in Polish labor relations. Employees have the right to form or join unions, and employers must respect their activities. Union representatives often negotiate on behalf of employees in disputes and collective bargaining. Employers are legally obliged to consult unions on matters like group layoffs or changes in work regulations.

Data Protection in Employment

Since the introduction of the General Data Protection Regulation (GDPR), employers in Poland must pay special attention to handling employee data. Employers may collect only data necessary for the employment relationship, such as personal details, tax numbers, and qualifications. Sensitive data like health information can only be processed in limited cases, usually linked to health and safety requirements.

Workplace Policies and Internal Regulations

Companies with at least 50 employees are required to introduce formal workplace regulations, including policies on working hours, remuneration, and occupational health and safety. Even smaller employers often implement internal policies voluntarily, as they help clarify rules for employees and reduce misunderstandings. Clear policies also make it easier for employers to demonstrate compliance in the event of inspections.

Probationary Contracts in Poland

Employers may start an employment relationship with a probationary contract (umowa na okres próbny). This type of contract allows both parties to test the cooperation before moving to a fixed-term or indefinite agreement. The probationary period cannot exceed 3 months and must be clearly defined in the contract. Termination during probation is subject to shorter notice periods, making it a flexible option for employers.

Fixed-Term vs. Indefinite-Term Contracts

Polish law distinguishes between fixed-term contracts (umowa na czas określony) and indefinite-term contracts (umowa na czas nieokreślony). Fixed-term agreements are common in the early stages of employment but cannot be abused—after 33 months or three consecutive fixed-term contracts, the employee automatically gains the right to an indefinite contract. Indefinite agreements provide the strongest protection, as employers must justify dismissals and follow stricter procedures.

Remote and Hybrid Work Regulations

Since 2023, Poland’s Labor Code has incorporated specific rules for remote work. Employers may allow employees to work fully remotely or in hybrid mode, provided the arrangement is confirmed in writing. Employers are responsible for covering the costs of equipment, internet, and other necessary tools. Remote employees enjoy the same rights as office workers, including working time limits, paid leave, and health & safety obligations.

Dispute Resolution and Labour Courts

In Poland, employment disputes are typically resolved through the Labour Court system. Employees may bring claims regarding unfair dismissal, unpaid wages, discrimination, or harassment. Before going to court, some disputes can be mediated internally or with the support of trade unions. Labour courts generally favor employees, so employers should always document decisions carefully and maintain transparent HR policies.

Health and Safety (BHP) Responsibilities

Polish law places strong emphasis on occupational health and safety (Bezpieczeństwo i Higiena Pracy – BHP). Employers must:

• Provide initial and regular BHP training.
• Supply personal protective equipment (PPE) when necessary.
• Conduct risk assessments in the workplace.
• Ensure employees undergo medical examinations before and during employment.

These rules apply equally to office-based and manual workers, though the frequency of checks may differ. Non-compliance can result in significant penalties during PIP inspections.