Establishing compliant employment relationships in Poland requires a thorough understanding of the country's labor law framework. Polish law provides specific regulations governing the types of employment agreements that can be used, the mandatory clauses they must contain, and the rules surrounding probationary periods, restrictive covenants, and contract termination. Adhering to these requirements is crucial for employers to ensure legal compliance and avoid potential disputes.
Navigating these legal nuances can be complex, especially for foreign companies hiring in Poland. Properly drafted and executed employment contracts form the foundation of a secure and legally sound employment relationship, clearly defining the rights and obligations of both the employer and the employee in accordance with Polish labor code provisions.
Types of Employment Agreements
Polish labor law primarily recognizes several types of employment agreements, each serving different purposes and having distinct characteristics. The most common types are the probationary period contract, the fixed-term contract, and the indefinite-term contract. Other forms, such as task-specific contracts or agency work contracts, exist but are typically used in specific circumstances.
| Contract Type | Purpose | Duration | Key Characteristics |
|---|---|---|---|
| Probationary Period | To assess the employee's qualifications and suitability for the role. | Maximum 3 months. Can be shorter. | Can be concluded once with the same employee for the same type of work. Can be renewed for a different type of work. |
| Fixed-Term | To employ for a specific period or for the completion of a specific task. | Limited duration. Subject to limits on number and total duration. | Maximum 3 contracts with the same employee for a total duration not exceeding 33 months. Exceeding limits results in indefinite-term contract. |
| Indefinite-Term | Standard, ongoing employment relationship. | Unlimited duration. | Provides the highest level of job security for the employee. Termination requires specific legal grounds. |
The choice of contract type depends on the nature of the work and the intended duration of the employment relationship, but employers must be mindful of the legal limits placed on fixed-term contracts to prevent them from automatically converting into indefinite-term agreements.
Essential Clauses
Polish labor law mandates that every employment agreement must contain specific essential clauses to be legally valid. These clauses define the fundamental terms of the employment relationship.
A standard employment contract in Poland must include:
- Parties to the agreement: Full identification of the employer and the employee.
- Type of agreement: Clearly stating whether it is a probationary, fixed-term, or indefinite-term contract.
- Date of conclusion: The date the contract is signed.
- Start date of work: The date the employee begins performing work.
- Type of work: A description of the position or duties.
- Place of work: The location where the work is performed.
- Remuneration: The amount of salary or wage, including components like basic pay, bonuses, etc., and the frequency of payment.
- Working time: The standard daily and weekly working hours.
- Annual leave entitlement: Information on the employee's right to paid annual leave.
While not strictly mandatory to be in the contract itself, certain other terms must be provided to the employee in writing within 7 days of the start date, such as daily and weekly working time limits, frequency of salary payment, length of paid annual leave, and the length of the notice period.
Probationary Period
A probationary period contract is a distinct type of employment agreement in Poland, used to assess an employee's suitability for a role. The maximum duration of a probationary period is 3 months. However, it can be agreed for a shorter period.
Specific rules apply to the duration based on the intended subsequent contract:
- If the parties intend to conclude a fixed-term contract shorter than 6 months, the probationary period cannot exceed 1 month.
- If the parties intend to conclude a fixed-term contract between 6 and 12 months, the probationary period cannot exceed 2 months.
- For fixed-term contracts longer than 12 months or indefinite-term contracts, the probationary period can be up to 3 months.
It is generally permissible to conclude only one probationary contract with the same employee for the same type of work. A second probationary contract with the same employee is only allowed if it is for a different type of work.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are common restrictive covenants in Polish employment law, designed to protect the employer's business interests.
- Confidentiality Clauses: These are generally enforceable and aim to prevent employees from disclosing sensitive company information during and after their employment. The scope of confidential information should be clearly defined.
- Non-Compete Clauses: These restrict an employee from engaging in activities competitive with the employer's business.
- During Employment: A non-compete clause during the term of employment is generally enforceable and does not require additional compensation beyond the regular salary.
- After Termination: A non-compete clause effective after the termination of employment is only valid if it is in writing and specifies the duration of the restriction and the amount of compensation payable to the employee. The compensation must be at least 25% of the employee's remuneration received before the termination, for the period corresponding to the duration of the restriction. The duration and scope of the non-compete clause must be reasonable and proportionate to the employer's legitimate interests.
The enforceability of these clauses depends heavily on their specific wording, scope, duration, and, in the case of post-termination non-compete, the provision of adequate compensation.
Contract Modification and Termination
Employment contracts in Poland can be modified or terminated according to specific legal procedures.
Modification: Changes to the essential terms of an employment contract (such as position, salary, or working time) typically require a written agreement between both parties, known as an annex or addendum. If the employer wishes to unilaterally change the terms, they must issue a "notice of change" (wypowiedzenie zmieniające). This notice effectively proposes new terms; if the employee accepts, the contract continues under the new terms. If the employee refuses, the contract terminates upon the expiry of the notice period applicable to the original contract.
Termination: Employment contracts can be terminated in several ways:
- By Mutual Agreement: Both parties agree in writing to terminate the contract on a specified date.
- By Notice: Either the employer or the employee can terminate the contract by providing written notice. The length of the notice period depends on the type of contract and, for fixed-term and indefinite-term contracts, the employee's length of service with the employer.
- Probationary Contract Notice Periods: 3 working days (for contracts up to 2 weeks), 1 week (for contracts over 2 weeks up to 3 months), 2 weeks (for 3-month contracts).
- Fixed-Term and Indefinite-Term Contract Notice Periods: 2 weeks (if employed for less than 6 months), 1 month (if employed for at least 6 months), 3 months (if employed for at least 3 years).
- Without Notice: Termination without notice is permissible only in specific, legally defined circumstances, such as gross misconduct by the employee or certain long-term absences due to illness or other justified reasons. The employer must consult with the company's trade union (if applicable) before terminating an indefinite-term contract by notice or terminating any contract without notice.
- Upon Expiry: Fixed-term contracts automatically terminate upon reaching their agreed end date.
Employers must provide a written justification for termination when terminating an indefinite-term contract by notice or terminating any contract without notice. This justification must be specific and legally valid.
