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A Polish EOR (Employer of Record) specializes in handling all employment-related obligations and liabilities, simplifying the expansion process in the country while maintaining full compliance. This includes managing payroll efficiently, adhering to tax regulations rigorously, and ensuring strict compliance with local labor laws. While your company continues to oversee daily employee operations, the EOR assumes the crucial role of the legal employer. This partnership not only lightens your administrative load but also guarantees comprehensive compliance with Polish regulations, making it ideal for employers.
Partnering with a Poland EOR/PEO simplifies your business expansion. You may be unfamiliar with Poland's unique labor laws, but an EOR/PEO, with local expertise, ensures compliance with regulations like minimum wages and working hours.
This is because Poland’s labor laws have some unique laws different from many other countries. For example, annual leave is based both on age and years of employment. Employees under the age of 30 are entitled to 20 days of leave, while those above 30 get 26 days, provided they have a certain length of employment service.
Even experienced foreign employers may overlook these nuances. A Poland EOR can help you navigate these nuances and compliantly hire employees from the country.
Poland EOR/PEO service costs vary based on factors like the number of employees, services required, and project complexity. Pricing typically includes a monthly fee per employee or a percentage of their salary, plus extra charges for additional services. For a customised quote, consult with the EOR/PEO provider.
Key Metrics For Foreign Employers
Poland boasts an impressive literacy rate of 99.8%. This presents a substantial talent pool for international employers.
Poland's combination of talent availability and economic stability has earned it a strong ranking of 40 among 190 competing economies worldwide. For employers seeking strategic opportunities and looking to tap into these advantages, Poland offers a promising landscape.
The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Poland
Source: The Global Talent Competitiveness Index 2022
Through the Gloroots’ Recrew platform, you can discover amazing talent in Poland.
Building a robust team entails hiring the right talent for the right positions at the right time. In Poland, employers must establish a local entity to effectively handle compliance, payroll, taxes, and benefits, which can be intricate due to the country's employment regulations.
This is where Gloroots and our global Employer of Record (EoR) service come in. With us, you can delegate the complexities of payroll, tax management, benefits, and compliance, enabling you to redirect your attention to what truly matters – your employees and the expansion of your company.
"Misclassification of employees" refers to incorrectly categorizing workers, often as independent contractors, leading to legal issues. In Poland, partnering with a PEO/EOR reduces misclassification risks by ensuring compliance, precise payroll, and access to benefits, allowing employers to focus on core operations.
Employment contract
In Poland, labor laws impose strict regulations regarding employment contracts.
Every type of employment agreement must include essential details such as:
- the start date of employment,
- agreed-upon compensation,
- working hours,
- job responsibilities,
- and any other relevant clauses pertaining to the position being offered.
1. Trial Contract:
This contract is provided to probationary employees.
Both parties can mutually agree on the probationary period.
2. Indefinite-Term Contract:
A contract with no fixed termination date for employment.
Employers have the option to terminate this contract under specific conditions.
3. Definite-Term Contract:
An employment agreement with a predetermined end date.
Employers can terminate such contracts by providing prior notice to employees.
4. Specific Task Contract:
Contracts automatically expire once an employee has completed and delivered a specific task.
These contracts are commonly used for seasonal employment and may have termination dates.
Get an overview of what you need to know when hiring in Poland.
Working time
In Poland, a regular workweek should not go beyond 40 hours in total, with eight hours per day.
Overtime
If employees work beyond eight hours, they must receive overtime pay. The most overtime hours allowed per week are 48 hours, and the yearly cap lies at 150 hours.
Overtime pay is applicable after working 45 hours per week. Overtime is compensated in the following manner.3
Alternatively, employees can receive time off instead of overtime pay.
Minimum wage
Starting from July 2023, the minimum wage will see a raise to PLN 3,600, marking the second increase in the same year, following the earlier increase to PLN 3,490 in January. This adjustment will also affect the maximum severance pay, which is determined as 15 times the minimum wage.
Annual leave
In Poland, the duration of paid annual leave is determined by an employee's seniority.
Employees are eligible for either 20 or 26 days of paid annual leave, depending on their years of service.
Moreover, an employee's seniority calculation considers not only their years of employment but also their educational qualifications.
Unused annual leave days can be carried over to the following year but must be used by September 30th of that year.
Parents with children under 14 years old are granted an additional two days of leave at 80% pay. These days can be taken by one parent in the same year and do not carry over to the next year if unused.
Certain professions, like teachers or those in academia, may be eligible for even longer periods of paid leave, which can extend to 36 days per year.
Paid Sick Leaves
All employees have the right to paid sick leave, which is determined by their years of service and age as specified in their employment contract.
1. Employees under 50 years old are eligible for up to 33 days of paid sick leave, covered by the employer. If the sick leave extends beyond day 33, Social Security (ZUS) will take over the payments from day 34 onward.
2. Employees aged 50 or older are entitled to up to 14 days of paid sick leave, covered by the employer. If the sick leave continues beyond day 14, Social Security (ZUS) will handle the payments from day 15 onward.
The employer pays sick leave at a rate of 80.00% of the average salary from the past 12 months. However, in cases where illness occurs during pregnancy or results from an accident during the commute to or from work, the payment is at 100.00%. Sick leave caused by a workplace accident or due to the employee's sick child or relative is also covered by Social Security (ZUS).
Maternity leaves
Female employees have maternity leave entitlements based on the number of children born or adopted, as follows:
1. 20 weeks for the birth of one child or adoption of one child.
2. 31 weeks for two children, 33 weeks for three children, and 35 weeks for four children.
3. 37 weeks for five or more children.
During maternity leave, the Social Security Institute provides full maternity pay at 100% of the employee's regular salary rate.
Maternity leave can commence no earlier than six weeks before the expected due date but can start later or even after childbirth, continuing without interruption. After childbirth, employees must take a minimum of 14 weeks of maternity leave before returning to work. They also have the option to transfer any unused leave beyond 14 weeks to the child's father.
Adoption leave is available to both adoptive parents but cannot be taken simultaneously by both parents, as stipulated by the labor code.
Paternity leaves
Fathers have the right to two weeks of paid paternity leave within the first 24 months after the child's birth or from the date of adoption before the child reaches seven years of age. This leave can be taken in a maximum of two separate one-week installments, and Social Security provides full payment at 100.00% of the employee's regular salary.
Tax and Social Security contribution:
Employee contribution
Employer contribution
Employee Income tax
The termination procedure differs based on the specific employment agreement, collective agreement, type of contract, and the grounds for termination.
Severance Pay
Employers with over 20 employees or employees terminated due to employer fault receive severance pay determined by the employee's length of service as follows:
The maximum severance pay is capped at 15 times the minimum wage.
Notice Period
In Poland, the notice period for both temporary and permanent employees is determined by the length of the employee's service as follows:
Probation period
Probation or trial periods are typically specified in the employee's contract, but the common practice in Poland is a three-month period.
When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder.
Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent.
Our promise is a stress-free global employment experience for both you and your employee.
Contact our experts today to kickstart your global hiring campaign.
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