HR Consultancy Services in Poland
IRIS HR Consulting has experience helping businesses grow in Poland. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in Poland to help businesses hire, recruit, and pay staff overseas in new, unfamiliar countries. When it comes to these challenges, we can help you overcome any part of Polish employment law that seems complicated. As a popular destination for businesses, IRIS can navigate local barriers – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.
Take your business to Poland with IRIS HR Consulting.
Global Expansion in Poland
Since the 1990s when Poland first transformed into a market economy, this strong European territory has emerged and flourished as one of Europe’s quickest success stories. Poland’s quick and reliable success is owed, in part, to three key pillars: its strategic European location; its educated workforce; and its attractive consumer market.
Poland is known for export opportunity, with strategic neighbouring markets in the West and East of its location. To accelerate the delivery of its economy to a global marketplace, Poland has since joined NATO (1999) and the European Union/EU (2004), which has further opened the Polish market to rich foreign investment and development. Poland has received, over the years, one of the largest shares of EU funding for its infrastructure and development.
A Guide to Employing Staff in Poland
Everything you need to know about the employment laws and compliance requirements in this country
Trust, Trade & Taxes in Poland
The Polish government, generally, sees foreign investment and trade favourably. With its business-friendly approach, Poland has been steadily attracting foreign business for development of its strong (and growing) economy. Layered on top of a favourable attitude toward foreign investment, the Polish government has structured incentives to help motivate its economy even further. The types of available public aid are regional, horizontal, and sectoral. They are also paid with grants, incentives or exemptions, which creates an attractive setting to launch a new business, or for an existing one to expand and emerge in this promising market.
Establishing your Business in Poland
Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.
Before establishing your operation in this Polish market, you must ensure compliance with employment law.
Here are some tips for establishing a business in Poland:
- Registrations are free with the CEIDG (or Central Registration and Information on Business) and ZUS (the Polish Social Insurance Institution).
- Decide if you’re a sole proprietorship
- Decide which income taxation is most beneficial for your business
- Choose PKD codes
- Establish a relationship with an accounting office
Polish Employment Laws
When first expanding your business into Poland, navigating local laws, legislation and rules of employment is no mean feat, especially if you’re unfamiliar with the country’s driving policies. Throughout Europe, these laws are almost never universal. Rather, employment is dynamic and reflects the country social, economic, cultural opportunities.
Did you know?
Since the introduction of the GDPR, protection of candidate and staff personal data is an increasingly hot topic. Think about the points at which you obtain data, how you process that data and the legal basis on which you do so.
Hiring & Recruitment in Poland
When getting your first hire overseas, you will need to negotiate terms of employment. But that requires local knowledge, strict compliance, and an understanding of what to include in an offer.
Employment relations in Poland are driven and motivated by key legislation, namely the Labour Code. There are, however, a number of other supporting statutory acts and secondary regulations, such as collective labour agreements.
Work Visas in Poland
As Poland is a member of the EU (European Union), citizens will not need a permit to work here. Other visitors, whether to live or to work, will likely need a permit to stay in Poland.
The types of permits for work in Poland include:
- Type A work permit:
If you work for a Polish employer, but are a foreign national, you are required to obtain a Type A work permit.
- Type B/C work permit:
If you work for another company and you’re sent to work in Poland, you’ll be required to obtain this permit.
Depending on the conditions of your stay, you will be required to obtain a work visa and a residence permit.
Employment Rights & Contracts in Poland
No later than 7 days before new role commences, an employment contract must be signed and registered with the Social Security Bureau. Additionally, before workplace role is official, it must be regulated by a set of statements and forms required for registration with the relevant authorities.
Contracts can be in Polish or English. But they must include the following statements:
- Relevant parties to the agreement
- Length of contract (refer to Contract Types)
- Date of contract execution (i.e. when it was signed)
- Employment terms and conditions:
- Type of work (i.e. duties to be performed)
- Place of work (i.e. work office or home office)
- Remuneration details (including variable compensation/bonus – treated as additional salary and taxable just as base income)
- Type of employment (if the work is to be performed on a full-time or a part-time basis)
- Date of commencement (i.e. start date)
Contract Types/ Length of Service
In Poland, employment can be active under one of three contract types (in respect to its length):
- Short term, or a “contract for trial”, which can typically consist of a probationary period (or for up to 3 months).
- Fixed term, which defines employment for up to 33 months and can be renewed 3 times.
- Indefinite, which simply describes an open-ended contract obliged to no formal end dates.
(All contracts may be subjected to a probationary period).
The following details must be included in the formal employment contract, including:
- Working hours
- Frequency of payment
- Annual leave entitlements
Equal Opportunities in Poland
Equality, diversity, and inclusion are strictly upheld in Polish law, whereby workplace discrimination is forbidden.
What are the Working Hours in Poland?
The standard working week is 40 hours over five days, or eight hours a day, within an accounting period of no more than four months in general. Anything in excess of this will constitute as “overtime”.
Overtime in Poland
Overtime, as a benefit in Poland, is usually compensated on a schedule at anywhere between 50-100% against gross pay on regular salary.
Public Holidays in Poland
In total, there are 13 national public holidays in Poland, including:
- New Year’s Day – 1 January
- Epiphany – 6 January
- Easter Sunday
- Easter Monday
- Labour Day/May Day – 1 May
- Constitution Day – 3 May
- Whit Sunday
- Corpus Christi
- Assumption Day – 15 August
- All Saints’ Day – 1 November
- Independence Day – 11 November
- Christmas Day – 25 December
- Boxing Day – 26 December
Employees who have been employed for less than ten years are entitled to 20 days of vacation per year; this is increased to 26 days per year for those who have been employed for more than ten years.
If vacation time is unused or leftover, it can be ported into the following calendar year, within a carry over period of up to 3 years.
Sick Leave in Poland
Employees contracted for work in Poland are entitled to ‘certified’ paid sick leave for longer term illnesses, that otherwise prevent working, and is organised under a physician. This must be formalised by a doctor’s consent. The employer is responsible for up to 33 days of paid leave, thereafter additional pay is covered by ZUS (or the Social Security Bureau).
Parental Leave in Poland
Maternity leave and parental absence are separate benefits for employees; typically, paternity leave is an option after maternity leave has already been used. This leave can range from 32 weeks up to 34 weeks, depending on the number of children. This entitlement can be shared between two parents or taken by one only.
Unpaid childcare leave can be granted to an employee of beyond 6 months and cannot exceed a 36-month absence.
Maternity Leave in Poland
In Poland this kind of benefit, maternity or paternity leave, is typically covered by ZUS (or the Social Security Bureau).
The exact length of maternity is determined on the number of expected children (a maximum leave of 37 weeks can be taken). Typically, this leave will last for 20 weeks, but anything after 14 weeks can be waived at the consent of the female employee. The carry over will be given to the male employee in order to raise the child.
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End of Service
HR in Poland requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.
For these more complicated matters, you will need expert HR guidance to navigate Polish labor laws and remain compliant.
Termination (including Severance) in Poland
A contract can be terminated, especially when there is mutual consent to end employment.
This is true, unless:
- Your employee is on an indefinite contract, whereby reasonable ground for dismissal are required.
- Whereas short term or fixed contracts are more easily void, whereby notice period is required to end a contract prematurely.
- Notice periods will be determined by the length of service.
Notice Periods in Poland
A contract can be terminated when proper (and reasonable) notice is given:
- 3 working days (if probationary period has not exceeded 2 weeks).
- 1 week when the probationary period is longer than 2 weeks.
- Lastly, 2 weeks if the probationary period is 3 months of longer.
Notice for fixed term and indefinite contracts, includes:
- Where the employee has been employed for less than 6 months, the notice period becomes 2 weeks.
- If the employer has worked with you for at least 6 months, the notice period becomes 1 month.
- It extends up to 3 months if the employee’s service is in excess of 3 years.
The Polish social security system is made up of three pillars. Pillar 1 and 2 are mandatory and Pillar 3 is operated on a voluntary basis. All contributions are split between the employee and the employer.
The work injury compensation is compulsory for all employees and it is administered by the Social Insurance Institution (ZUS). The employer alone must pay contributions to the scheme and the contribution rate varies between 0.67% to 3.33% depending on the industry.
Due to low levels of public medical care and long waiting times, employers are increasingly offering private medical insurance schemes to their employees.
There has been a change in pension legislation within Poland over the last few years. It has now been passed that all companies must implement an Employee Capital Plan (ECP).
Death & Disability Insurance
It is very common for employers to offer a life insurance plan based on a flat rate of benefit payable ranging from PLN 10,000 – 100,000.
Why Partner With IRIS?
When entering new, exciting countries in Europe, like Poland, you will need an employment specialist to navigate the parts of local laws that are mandatory and those that are not. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.
Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully compliant solution, IRIS can help businesses reach Europe, especially when they build bridges in Poland.
Our cost-effective, knowledgeable approach to HR in Poland makes us an ideal partner to commence your overseas plans.