Navigating employment termination in Poland requires careful adherence to the country's Labor Code. Both employers and employees have specific rights and obligations that must be respected throughout the process. Understanding the legal framework is crucial for ensuring compliance and avoiding potential disputes or claims of wrongful dismissal.
Properly managing the termination process involves understanding the valid grounds for ending an employment relationship, calculating appropriate notice periods, determining severance entitlements, and following strict procedural requirements. Failure to comply with these regulations can lead to significant legal challenges and financial penalties for the employer.
Notice Periods
The required notice period for terminating an employment contract in Poland depends primarily on the type of contract and the employee's length of service with the employer. Different rules apply to fixed-term, indefinite-term, and probationary contracts.
For employment contracts concluded for an indefinite term and fixed-term contracts (if the contract duration is longer than 6 months and the parties have included a clause allowing for termination with notice), the notice periods are as follows, based on the employee's length of service with the employer:
| Length of Service with Employer | Notice Period |
|---|---|
| Less than 6 months | 2 weeks |
| At least 6 months | 1 month |
| At least 3 years | 3 months |
For probationary contracts, the notice periods are shorter and depend on the duration of the probationary period:
| Duration of Probationary Contract | Notice Period |
|---|---|
| Up to 2 weeks | 3 working days |
| Longer than 2 weeks but less than 3 months | 1 week |
| 3 months | 2 weeks |
The notice period begins on the first day of the calendar month following the month in which the notice of termination was delivered. For notice periods calculated in weeks or days, the period ends on Saturday (for weeks) or the last day (for days) of the respective period.
Severance Pay
Severance pay in Poland is not a universal entitlement upon every termination. It is typically required in specific circumstances, primarily when the termination is due to reasons not attributable to the employee. The most common situations requiring severance pay are:
- Termination under the Act on Collective Redundancies (when an employer terminates employment for reasons related to the employer, affecting a certain number of employees).
- Individual termination for reasons not attributable to the employee (e.g., redundancy, liquidation of the employer, or other organizational changes), provided the employer employs at least 20 employees.
The amount of severance pay depends on the employee's length of service with the employer:
| Length of Service with Employer | Severance Pay Amount (based on monthly salary) |
|---|---|
| Less than 2 years | 1 month's salary |
| At least 2 years | 2 months' salary |
| At least 8 years | 3 months' salary |
The calculation of the severance pay is based on the rules for calculating holiday pay, excluding certain components of remuneration. The maximum amount of severance pay is capped at 15 times the minimum wage in force at the time of termination.
Grounds for Termination
Employment contracts in Poland can be terminated based on several grounds:
Termination by Mutual Agreement
This is the simplest method, requiring written consent from both the employer and the employee. The agreement should specify the termination date.
Termination by Notice
This is the standard method for terminating indefinite-term and certain fixed-term contracts. The employer or employee provides written notice, and the contract ends after the applicable notice period expires.
- Termination by employer with cause: This occurs when the employee is at fault, such as gross violation of basic employee duties, committing a crime that prevents further employment, or prolonged absence from work due to illness or other justified reasons (exceeding specific time limits defined by law). This type of termination can be immediate (without notice period).
- Termination by employer without cause: This applies when the reasons for termination are related to the employer (e.g., redundancy, restructuring, liquidation). For indefinite-term contracts, the employer must provide a specific, justified reason in the written notice.
- Termination by employee with notice: Employees can terminate their contract with notice without needing to provide a reason.
- Termination by employee without notice: This is possible in limited circumstances, such as when the employer commits a gross violation of basic duties towards the employee (e.g., failure to pay wages).
Termination without Notice (Immediate Termination)
This is an exceptional measure, primarily used in cases of serious employee misconduct (termination with cause by employer) or serious employer misconduct (termination by employee). Strict legal conditions must be met for this type of termination to be lawful.
Procedural Requirements
Lawful termination requires strict adherence to procedural steps, particularly when the employer initiates the termination with notice or without notice.
- Written Form: The notice of termination or the declaration of termination without notice must be in writing.
- Reason for Termination: When an employer terminates an indefinite-term contract with notice, or terminates any contract without notice, the written declaration must state the specific, justified reason(s) for the termination. The reason must be real and concrete.
- Information on Appeal Rights: The written notice must inform the employee of their right to appeal to the labor court and the deadline for doing so (typically 21 days from receiving the notice).
- Consultation with Trade Union: If the employee is a member of a trade union or represented by one, the employer must typically consult with the relevant trade union before terminating an indefinite-term contract with notice or terminating any contract without notice. The union has a specific period to raise objections.
- Delivery: The notice must be delivered to the employee in a way that allows the employer to prove it was received (e.g., in person with confirmation of receipt, registered mail).
Common procedural pitfalls include failing to provide a reason (when required), stating an insufficient or untrue reason, failing to consult with the trade union, or errors in calculating or applying the notice period.
Employee Protections Against Wrongful Dismissal
Polish labor law provides significant protection to employees against unlawful or unjustified termination. If an employee believes their termination was unlawful (e.g., incorrect procedure, no valid reason, discriminatory reason) or unjustified (the stated reason was not real or sufficient), they can file a claim with the labor court.
The labor court will examine the legality and justification of the termination. If the court finds the termination to be unlawful or unjustified, it can order one of two remedies:
- Reinstatement: The court can order the employer to re-employ the employee under the previous terms and conditions. The employee may also be entitled to compensation for the period they were unemployed due to the unlawful termination.
- Compensation: If reinstatement is not feasible or requested by the employee, the court can award compensation. The amount of compensation typically depends on the length of the notice period and the employee's salary, but there are statutory limits.
Certain categories of employees benefit from enhanced protection against termination, including employees on maternity or parental leave, employees during pre-retirement age (typically four years before retirement), and employees who are members of trade union boards. Terminating these employees requires specific, often stricter, conditions to be met.
