Types of employment

There are three most popular methods of performing work in Poland.

General rules

There are three most popular methods of performing work in Poland – based on an employment agreement, civil law agreement and so-called self-employment. The provisions of Polish Labour Code apply only to persons employed with employment agreements.

Employment based on civil law agreements and self-employment are generally more flexible and less expensive for the employers. However, the parties should always remember to create the agreement in accordance with specific rules for employment or civil law agreements.

By establishing an employment relationship, an employee undertakes to perform work of a specified type for the benefit of an employer and under his or her supervision, in a place and at the time specified by the employer. The employment contract cannot be replaced by the civil law contract where the performance of work conditions specified above apply. If a civil law contract provides rules characteristic of an employment contract, it can be deemed as an employment contract.

Types of employment agreement

There are three types of employment agreements in Poland:

  • employment agreement for trial period (for the maximum period of 3 months)
  • employment agreement for definite period
  • employment agreement for indefinite period

 

All foreigners, EU and non-EU residents, can be employed based on the same types of agreements as Polish citizens.

Working time

According to Polish Labour Code, the working time should not exceed eight hours per day and 40 hours per five-day-long working week on average and a weekly working time, including the overtime hours, should not exceed 48 hours on average.

Minimum wage

The remuneration in Poland cannot be lower than minimum wage, which is determined by the Council of Ministers. In 2021 the minimum wage amounts to PLN 2,800 (approx. EUR 620) gross per month.

Civil law contracts

There are two main types of civil law contracts in Poland – the contract to perform specified work (umowa o dzieło) and the contract of mandate (umowa zlecenie).

The contract to perform specified work is most common for seasonal work and within IP sector (creative, new tech). Within this contract parties often transfer intellectual property rights. The crucial characteristic of a contract to perform specified task is the fact that it defines its termination date by completing the specified work.

The purpose of a contract of mandate is the performance of specified activities by the party who accepts an order (an agent) for the benefit of the party who orders an order (a principal). This contract is usually concluded for an indefinite time and can be in any time terminated.

Self-employment

Self-employment is a specific relationship between an employee and an employer. It assumes that entrepreneurs are equal partners. An employee is not subordinate and can organize his work at his own discretion. An employer does not specify the time and place in which work is to be performed even though a contract concluded between entrepreneurs may include detailed provisions on the method and time in which services are to be performed.

Remuneration of a self-employed person is not subject to the regulation on the minimum wage and an employer is not obliged to pay remuneration on a monthly basis.

We can advise you on the best form of employment in accordance with legal requirements and your needs, we also provide personnel and payroll services.

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