Poland

Poland offers a wealth of opportunities for businesses looking to expand or tap into a pool of highly skilled talent. However, navigating the country’s complex labor laws and employment regulations can be a challenging task, especially for companies unfamiliar with the local landscape. To ease this burden, Bizky provides an efficient and comprehensive solution through its Employer of Record (EOR) service. This service allows businesses to hire employees in Poland without the need to establish a local legal entity, ensuring full compliance with Polish labor laws, tax obligations, and social security contributions—all while allowing companies to focus on their strategic goals.

In this article, we will explore how Bizky’s EOR service simplifies the process of hiring in Poland. From understanding various contract types and ensuring seamless employee onboarding to managing payroll, tax compliance, and safeguarding intellectual property, we’ll cover the essential steps businesses need to take to build a successful workforce. Whether your company is looking to hire long-term employees, temporary staff, or independent contractors, Bizky’s EOR solution provides a reliable and compliant path to growing your team in Poland, allowing you to operate smoothly in this promising market.

An Employer of Record (EOR) is an excellent solution for businesses looking to hire employees in Poland without the need to establish a legal entity. Poland’s complex labor laws, including regulations on hours of work, minimum wage, and mandatory benefits, can be challenging for foreign companies to navigate. By partnering with an EOR, companies can ensure full compliance with these regulations while focusing on their core business activities. The EOR takes care of all administrative and legal responsibilities, including payroll, tax filings, social security contributions, and adherence to Poland’s labor laws, which govern crucial aspects like overtime, paid leave, and healthcare benefits.

Hiring employees in Poland through an EOR simplifies the process for businesses, particularly those unfamiliar with local labor regulations. Poland’s laws on working hours, including limits on overtime and the requirement for rest periods, must be strictly followed to avoid legal risks. An EOR ensures that all employment contracts meet these requirements and that employees receive the appropriate compensation for their work. This arrangement allows companies to focus on managing their employees’ tasks and responsibilities while the EOR handles the intricacies of Polish labor law compliance.

Using an EOR is a flexible and cost-effective way to hire employees in Poland, allowing businesses to quickly scale their workforce while ensuring they remain compliant with Poland’s complex labor laws. Whether companies are testing the market, running short-term projects, or building a remote team, an EOR helps streamline the process and reduces the risk of non-compliance, especially when it comes to managing hours of work and other employee benefits in Poland.

Poland’s labor laws provide several types of employment contracts, each suited to different employment needs and offering varying levels of job security and benefits. Understanding these contract types is crucial for businesses seeking to hire employees in Poland, as choosing the right contract not only impacts the employment relationship but also ensures compliance with Polish labor regulations.

The most common and comprehensive form of employment is the permanent employment contract (umowa o pracę). This contract type offers employees long-term job security and provides a wide range of benefits, such as full social security coverage, healthcare benefits, paid leave entitlements (including vacation days and sick leave), and retirement contributions. Permanent contracts are typically used for employees in key or long-term roles, and they provide both the employer and employee with stability and certainty. In return, employers must adhere to strict regulations regarding working hours, overtime compensation, and termination procedures.

Another frequently used contract type is the fixed-term contract (umowa na czas określony), which is commonly employed for temporary or project-based staffing needs. These contracts are limited to a specific duration, and while they offer similar benefits to permanent contracts, they provide more flexibility for the employer, especially when hiring for a limited period. However, fixed-term contracts are subject to legal restrictions in Poland, including limits on the number of times they can be renewed consecutively before they automatically convert into a permanent employment contract.

In addition to these traditional employment contracts, B2B contracts have become increasingly popular in sectors such as IT, consulting, and freelancing. Under a B2B contract, individuals operate as independent contractors or business entities, rather than formal employees. This arrangement allows professionals to maintain greater autonomy over their work and often provides tax advantages for both the contractor and the hiring company. However, it also means that B2B contractors are not entitled to the same employee benefits (such as social security or paid leave) provided under employment contracts, making it more suitable for highly skilled, self-sufficient workers who prefer a more flexible working relationship.

An Employer of Record (EOR) can play a vital role in helping businesses navigate these various contract types in Poland. By partnering with an EOR, companies can ensure they choose the most appropriate employment contract to meet their operational needs while remaining fully compliant with Polish labor regulations. The EOR takes responsibility for drafting, managing, and administering these contracts, ensuring that all legal requirements are met, and that the employment relationship is clearly defined. This can be particularly helpful for international companies unfamiliar with local labor laws, as the EOR provides the expertise needed to avoid costly legal missteps and ensures that employees are properly classified and compensated according to Polish standards.

Whether a business is looking for long-term employees, temporary staff, or independent contractors, understanding the different employment contract types in Poland is essential for building a successful and compliant workforce.

Employee onboarding in Poland, especially when managed through an Employer of Record (EOR), offers a seamless and efficient way to integrate new hires while ensuring full compliance with Poland’s complex labor laws. The onboarding process can be quite detailed, as it involves adhering to strict regulations related to employment contracts, tax compliance, social security, and healthcare registration. By utilizing the services of an EOR, companies can offload the administrative burden of this process and focus on core business activities, while ensuring that all legal requirements are met.

One of the most important aspects of onboarding in Poland is the contract drafting process. Polish labor law mandates that all employment contracts must be in writing and clearly specify essential terms such as job roles, hours of work, compensation, benefits, and conditions for termination. Contracts must also be in line with local regulations regarding minimum wage, overtime pay, and employee entitlements such as vacation days and sick leave. The EOR plays a crucial role in ensuring that these contracts are legally compliant, protecting both the employer and the employee from potential disputes or legal issues. This level of detail is essential, as any misstep in contract creation can lead to penalties or complications later on.

Beyond contract drafting, tax compliance is a key element of the onboarding process in Poland. The Polish tax system is intricate, and employers are responsible for withholding and remitting income tax on behalf of their employees. An EOR ensures that all tax obligations are met in a timely and accurate manner, handling everything from calculating tax deductions to submitting the required documentation to local tax authorities. This reduces the risk of fines or penalties for late or inaccurate tax filings and ensures that the company remains fully compliant with Poland’s tax laws.

In addition to tax compliance, the EOR also manages the registration of employees with Poland’s social security and healthcare systems. This is a critical component of onboarding, as all employees in Poland are entitled to social security benefits, including pensions, unemployment insurance, and health coverage. The EOR ensures that new hires are properly enrolled in these systems, so that they can access benefits like medical care and paid leave. This not only guarantees compliance with legal requirements but also contributes to employee satisfaction and well-being, as workers know they are covered by Poland’s robust social security network.

Moreover, the EOR takes responsibility for ensuring compliance with Poland’s regulations regarding hours of work, including overtime rules, rest periods, and holiday entitlements. In Poland, strict rules govern how many hours employees can work per week, and employers must provide sufficient breaks and paid leave. The EOR ensures that these requirements are adhered to, reducing the risk of non-compliance and helping businesses avoid potential legal issues related to overworking employees.

Payroll management in Poland can be a complex process, as it involves not only calculating gross wages but also managing a variety of tax deductions, social security contributions, and additional benefits. Employers in Poland are responsible for ensuring that these deductions are made correctly and that all payroll costs are fully compliant with Polish labor laws. Payroll costs in Poland encompass a range of elements, including gross wages, taxes, and social security contributions, making accurate payroll management crucial for businesses operating in the country.

One of the most significant components of payroll in Poland is income tax. Employers are required to withhold income tax on behalf of their employees based on Poland’s progressive tax system, which operates with two main tax brackets: 12% for lower-income employees and 32% for higher-income earners. Accurate calculation and timely remittance of income tax are essential to remain compliant with Polish tax laws, and errors in withholding or filing can result in penalties for the employer.

In addition to income tax, social security contributions form a major part of payroll costs in Poland. Employers must contribute to a variety of social security programs, including pensions, disability insurance, and accident insurance. These contributions are designed to provide financial security for employees in the event of retirement, disability, or workplace injuries. The specific contribution rates are regulated by Polish law and must be remitted regularly to ensure that employees are covered under these essential programs.

Health insurance contributions are another important element of payroll in Poland. Employers are required to contribute 9% of the employee’s gross salary to Poland’s public healthcare system, granting employees access to state-provided healthcare services. This ensures that all employees have basic health coverage, including medical care and hospitalization services. In addition to the public healthcare contribution, many employers in Poland choose to offer private health insurance as an additional benefit. Private health insurance provides employees with access to enhanced healthcare services, shorter waiting times, and a broader network of medical providers, contributing to employee satisfaction and well-being.

Beyond these mandatory contributions, Polish employers often provide a range of additional benefits to attract and retain top talent. These benefits may include fitness allowances, which help cover the cost of gym memberships or wellness programs, promoting a healthy lifestyle for employees. Employers may also offer supplementary life insurance, providing additional financial protection for employees and their families in the event of death or serious illness.

Another increasingly popular benefit is the additional PPK contribution. The PPK is a government-supported pension savings program, and employers may choose to contribute more than the legally required minimum to help employees build a more substantial retirement fund. This additional contribution can be a significant incentive for employees, especially those looking to enhance their long-term financial security.

Polish employers also frequently offer cash bonuses as part of their compensation packages. These bonuses may be tied to performance, company profitability, or other incentives, providing employees with additional financial rewards on top of their regular salary. Moreover, to support employees’ work-life balance and reduce commuting-related expenses, some companies reimburse transportation costs, such as the cost of public transit passes or fuel for personal vehicles.

By offering these additional benefits, employers in Poland can create more attractive compensation packages, helping to boost employee morale, increase retention, and stay competitive in a dynamic labor market. Managing payroll in Poland involves not only adhering to legal obligations regarding income tax, social security, and health insurance contributions but also strategically offering a range of benefits, including private health insurance, fitness allowances, supplementary life insurance, additional PPK contributions, cash bonuses, and transportation cost reimbursement. Together, these elements contribute to a comprehensive and competitive payroll package that supports both the employer’s compliance and the well-being of employees.

Polish labor law provides robust protections and rights for employees, ensuring fair and equal treatment in the workplace. One of the fundamental principles of Polish labor law is protection from discrimination, which prohibits any unequal treatment based on factors such as gender, age, disability, race, religion, or political beliefs. Employers are legally required to provide equal opportunities for all employees, whether in hiring, promotion, salary, or termination. This framework creates a workplace environment that promotes fairness and inclusivity, reducing the risk of discriminatory practices.

In addition to anti-discrimination protections, Polish employees are safeguarded against unfair dismissal. Terminating an employee’s contract must follow specific legal procedures, particularly for those on permanent contracts. The employer is required to provide just cause for dismissal, which must be clearly documented and communicated to the employee. In cases of wrongful termination or failure to follow these procedures, employees have the right to challenge the dismissal in labor courts. This system ensures that employees are treated fairly in cases of contract termination and that employers adhere to legal guidelines, reducing the risk of costly legal disputes.

Polish labor law also guarantees employees certain entitlements related to paid leave. Depending on their length of service, employees are entitled to between 20 and 26 days of paid annual leave per year. Employees with less than 10 years of service are entitled to 20 days of paid leave, while those with more than 10 years are entitled to 26 days. The purpose of this leave is to ensure that workers can take time off to rest and recuperate, promoting both physical and mental well-being. Additionally, employees are entitled to paid sick leave and maternity or paternity leave, ensuring that workers have the necessary support during times of illness or family needs.

Another critical aspect of employee protection in Poland is adherence to strict health and safety regulations. Employers are required to ensure that the work environment complies with safety standards designed to prevent workplace accidents and occupational illnesses. These regulations include providing employees with proper safety equipment, conducting regular risk assessments, and ensuring that working conditions are safe and do not pose a health risk. Failure to comply with health and safety laws can lead to significant penalties for employers, as well as the risk of accidents that may harm employees.

For international businesses operating in Poland, partnering with an Employer of Record (EOR) can be an effective way to ensure full compliance with these labor laws and protections. The EOR takes on the responsibility of managing employee rights, ensuring that all legal obligations are met, from drafting compliant employment contracts to managing issues related to termination, paid leave, and workplace safety. By handling these complex legal requirements, the EOR helps businesses avoid legal disputes and costly fines, while fostering a positive and legally compliant work environment for employees.

Moreover, an EOR ensures that employees are not only aware of their rights but also have access to the benefits they are entitled to under Polish law. This creates a more transparent and secure employment relationship, contributing to higher employee satisfaction and retention. By prioritizing employee rights and protections, businesses can cultivate a positive work culture that values fairness, safety, and well-being, all while operating within the legal framework of Polish labor law. This approach helps safeguard both the employer’s reputation and the well-being of the workforce, ultimately contributing to the long-term success of the organization.

Poland’s labor laws provide employees with a range of leave entitlements, ensuring that workers can take time off for personal, health, and family-related reasons. One of the most important aspects of this system is annual leave, which is determined by an employee’s length of service. Employees with fewer than 10 years of service are entitled to 20 days of paid annual leave, while those with over 10 years of service are entitled to 26 days. This generous leave policy allows employees to take time off to rest, rejuvenate, and maintain a healthy work-life balance, contributing to overall well-being and productivity. Additionally, the years of service required to qualify for the higher leave entitlement can include not only time spent with the current employer but also any previous employment or educational periods, further supporting workers’ access to this benefit.

In cases of illness or injury, Polish employees are also entitled to sick leave. Sick leave can last up to 33 days in a given calendar year, during which time the employer is responsible for compensating the employee. After 33 days, Poland’s state social security system, ZUS (Zakład Ubezpieczeń Społecznych), takes over responsibility for paying the employee, ensuring they have financial support while recovering. This policy provides a safety net for employees during times of illness or incapacity, while also protecting businesses from bearing the entire financial burden of long-term sick leave.

Maternity leave in Poland is another key component of the country’s leave policies. Female employees are entitled to 20 weeks of maternity leave, which is paid and protected by law. This ensures that new mothers can focus on their recovery and the care of their newborns without the pressure of returning to work too soon. In addition to the mandatory 20 weeks, mothers can choose to extend their leave by an additional six weeks if needed, offering more flexibility for family care. Furthermore, Poland’s paternity leave provisions allow fathers to take up to two weeks of paid leave to support their partners and bond with their newborns. This leave can be taken all at once or in parts, providing flexibility to new fathers as they manage their family responsibilities.

End of employment and termination

The termination of an employment contract in Poland is subject to strict legal requirements, especially for employees on permanent contracts. The process of terminating employment must follow specific legal procedures, including the provision of notice periods that vary depending on the length of service. For example, employees with less than six months of service are entitled to a two-week notice period, while employees with between six months and three years of service are entitled to one month’s notice. Those with over three years of service are entitled to a three-month notice period. Importantly, terminations must be justified, particularly in cases involving permanent contracts. Employers must provide a clear and valid reason for ending the employment relationship, whether it be due to poor performance, misconduct, or organizational restructuring.

An Employer of record (EOR) can significantly assist businesses in managing the complexities of the termination process in Poland. The EOR takes on the responsibility of ensuring full compliance with local labor laws, helping employers navigate the legal requirements for termination, handling severance pay, and managing any additional compensation that may be required. By ensuring that all steps of the termination process are handled correctly, the EOR helps reduce the risk of legal disputes, which could arise if an employee believes their dismissal was unfair or unlawful. Additionally, the EOR can help mitigate issues related to protection from harassment and unfair dismissal, two critical areas of Polish labor law that are heavily regulated to protect employees.

Termination processes in Poland must also take into account protections against harassment and discrimination. If an employee believes they are being terminated for discriminatory reasons or due to workplace harassment, they have the right to challenge the dismissal in court. An EOR can help ensure that employers follow best practices when handling sensitive termination cases, conducting thorough investigations and documenting all actions to protect the company from legal challenges. Overall, the EOR plays a crucial role in managing the end of employment processes, ensuring that all legal obligations are met, employee rights are respected, and potential disputes are avoided.

With remote hiring on the rise, especially in sectors like IT, partnering with an EOR simplifies the process of hiring remote employees in Poland. By handling payroll, contracts, and tax compliance, the EOR allows companies to focus on productivity without the complexities of Polish labor law.

Hiring B2B contractors also offers flexibility and cost-saving opportunities for companies seeking to engage independent professionals. The EOR ensures contracts meet Polish commercial law standards, protecting businesses from risks associated with employee misclassification

Intellectual property (IP) protection is a critical consideration for businesses operating in Poland, especially when hiring through an Employer of Record (EOR). Safeguarding intellectual property, such as trademarks, patents, copyrights, and trade secrets, is vital to maintaining a company’s competitive edge. Poland has robust legal frameworks in place to protect IP rights, and working with an EOR ensures that your business remains compliant with these laws while securing its proprietary assets.

When hiring employees or contractors in Poland through an EOR, it is important to clearly outline the ownership of any intellectual property created during the course of employment. Under Polish law, intellectual property generated by employees in the course of their duties typically belongs to the employer, but this must be explicitly stated in the employment or service agreement to avoid disputes. The EOR can assist in drafting clear, legally binding contracts that address IP ownership, ensuring that your business retains full rights to any innovations, creations, or products developed by the workforce.

Additionally, an EOR helps ensure that any agreements involving confidentiality, non-disclosure, and non-compete clauses are properly enforced, which is especially important in sectors such as technology, research and development, and creative industries. These clauses protect against the misuse of sensitive information and the unauthorized use of company IP by employees or third parties.

By working with an EOR in Poland, businesses can navigate the complexities of IP protection with confidence. The EOR ensures that all contractual and legal protections are in place, reducing the risk of intellectual property theft or misuse, and ensuring that businesses maintain control over their valuable assets. Whether you’re hiring remote workers, B2B contractors, or full-time employees, the EOR provides the necessary legal support to safeguard your intellectual property in Poland.

Terminating an employment contract in Poland is a process governed by strict legal requirements, especially when it comes to permanent employment contracts. The law mandates that specific procedures be followed, including the provision of appropriate notice periods, which are determined by the employee’s length of service. For example, employees with less than six months of service are entitled to a two-week notice period, while those with between six months and three years of service are entitled to one month. Employees with more than three years of service are entitled to three months’ notice. This notice must be given in writing, and for terminations involving permanent contracts, the employer must provide a justified reason for the termination. Valid reasons for termination can range from poor employee performance and misconduct to organizational restructuring.

Navigating the complexities of Polish termination laws can be challenging, particularly for businesses unfamiliar with local labor regulations. An Employer of Record (EOR) can be an invaluable partner in ensuring that all termination procedures are legally compliant. The EOR takes on the responsibility of managing every aspect of the termination process, including preparing and delivering termination notices, ensuring that justifications for terminations are well-documented, and handling any required severance payments. This ensures that employers are protected from potential legal disputes and that employees are treated fairly according to Polish law.

Additionally, Polish labor law provides protections against unfair dismissal and discrimination, meaning that terminations must not only be justified but must also comply with anti-discrimination laws. Employees who believe they have been wrongfully terminated or discriminated against have the right to challenge their dismissal in a labor court. An EOR helps employers mitigate this risk by ensuring that termination procedures follow best practices and that all necessary documentation is in place to defend against claims of unfair dismissal.

Moreover, when terminating an employment contract, businesses must also consider Polish laws surrounding protection from harassment. If an employee claims they were dismissed as a result of harassment or discrimination, the employer may face legal challenges. An EOR can assist in conducting investigations and ensuring that the company adheres to legal guidelines, protecting the business from potential reputational damage and financial penalties.

Remote work has become increasingly common in Poland, particularly in sectors such as technology, consulting, and creative services. An Employer of Record (EOR) facilitates the seamless hiring and management of remote employees in Poland, ensuring compliance with labor laws and regulations even when employees are not physically present in a traditional office setting. The EOR takes on the responsibility of handling contracts, payroll, tax compliance, and employee benefits, allowing companies to focus on managing their remote teams’ productivity and collaboration.

Polish labor law supports remote work arrangements, but companies must still comply with key legal obligations, including health and safety regulations, working hours, and data protection. The EOR ensures that these obligations are met, regardless of where the employee is working from, whether it be their home or a coworking space. This includes ensuring that remote employees receive the same protections and benefits as on-site workers, such as paid leave, health insurance, and pension contributions.

One of the primary benefits of remote work in Poland through an EOR is access to a wider talent pool, as companies can hire from anywhere in the country without needing a physical presence. This flexibility enables businesses to tap into skilled professionals from across Poland, reducing geographic constraints and increasing access to talent. Additionally, remote work can lead to cost savings on office space and other operational expenses.