employment law overview 2017 · in polish law there are strict limitations on background checks. an...

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EmploymEnt law ovErviEw 2017

Poland

i. GEnEral 01ii. hirinG practicEs 02iii. EmploymEnt contracts 03iv. workinG conditions 05V. Anti-DiscriminAtion LAws 07vi. social mEdia and data privacy 09vii. authorizations for forEiGn EmployEEs 10 viii. tErmination of EmploymEnt contracts 11iX. rEstrictivE covEnants 13X. riGhts of EmployEEs in casE of a transfEr of undErtakinG 14Xi. tradE unions and EmployErs associations 15Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs 17Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits 18

Table of contEnts

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• Provisionsofcollectivelabouragreementsand otheragreementsbasedontheActoncollective labouragreements,rulesandprocedures,and statutessettingforththerightsandobligationsof thepartiestotheemploymentrelation.

Mutual rights and obligations of the parties to labourrelationsarealsodefinedinanemploymentcontract.

4. NewDevelopments

In2015,Sejm(thechamberofpolishParliament)passedthelawofamendmentontheLabourCodeandthePresidentsignedthisact:changingthedurationofperiodofthecontractofemploymentforafixedtermfromFebruary2016.Thisperiodcouldbenolongerthan33months,andthetotalnumberofagreementsforfixedtermcanbenomorethan3.Theperiodofnoticeis,dependingonprofessionalexperience,2weeks,1monthor3months(theseperiodsoftimeareequaltothecontractsofemploymentforanindefinitetime).ThecontractofemploymentfortheperiodnecessarytoperformaspecifictasknolongerexistsintheLabourCode.

AlsostartinginJanuary2016Polishlabourlawchangeditsparentalleavesystem.Anadditionalmaternityleavenolongerexists,butparentalleavewasenhanced.

Aspercaselawthereasonoftheterminationoftheemploymentcontractshallnotbeofmajorimportance.Thatmeanstheemployershallnotbreachtheregulationsconcerningthewayofindicatingthereasonofterminationofcontractofemployment,iftheemployeeisawareofwhyanemployerdecidedtoenditscooperationwithhim/her.


i. GEnEral

1. IntroductoryParagraph

Polandiswellknownforitslowpersonnelcosts.Duetothisfact,itiscurrentlyEurope’smainoutsourcinghub,withcompaniessuchasAmazon,GeneralMotors,Dellandvariousmajorbanksmoving itsplantsandsharedservice centres to Poland. Easy access to qualifiedemployeesresults fromastate-paiduniversitysystem,whichproducesmanyhighlyspecializedandinnovativeworkers, especially in the field of IT and engineering.ReadthisarticletolearnthebasicsofwhatyouneedtoknowaboutPolishemploymentlawbeforeestablishingabranchinPoland.

2. KeyPoints

Riskstopreparefor:

• anever-evolvingtaxandsocialsecuritysystem,• highpresenceandactivityoftradeunionsincase ofmajoremployers,• labourcourtssensitivetoemployeerights,• strictEUdataprotectionregulations,i.a.hindering transferofpersonaldataoutsideoftheEU.

3. LegalFramework

Employees’ and employers’ rights and obligations aredefinedinthefollowingsourcesoflabourlaw:

• TheConstitutionoftheRepublicofPolandwhich definesgeneralprinciplesoffreedomtoworkand socialrights;• Thelawestablishedbyappropriateorgansofthe EuropeanUnioninthescopeoflabourlaw;• Internationalagreementsconcerninglabourlaw issues;• LabourCode,• Actsandsecondarylegislation,definingthe employees’andemployers’rightsandobligations;

www.leglobal.org

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InPolishlawtherearestrictlimitationsonbackgroundchecks.Anemployermayrequireanapplicanttoprovidethefollowingpersonaldataonly:name(s)andsurname,namesofparents,dateofbirth,placeofresidence(mailingaddress),educationandemploymentrecord.Personaldataisprovidedtoanemployerintheformofastatementissuedbythepersonwhosedataisprovided.Anemployermayrequiretherelevantdocumentationtoconfirmpersonaldataofthepersons.Employermayrequiretheprovisionofpersonaldataotherthanthedataspecifiedabovepursuanttoseparateregulationsonly.


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ii. hirinG practicEs


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1. MinimumRequirements

When starting an employment relationship, anemployeeundertakestoperformworkofaspecifickindtothebenefitoftheemployerandundertheemployer’smanagementaswellasataplaceandforatimesetbytheemployer,whereastheemployerundertakestoemploythe employee for remuneration. Employment undersuch conditions is employmentunderanemploymentrelation regardless of the name of the contract theparties concluded. The Labour Code distinguishesa number of employment contracts, including anemploymentcontractforatrialperiod,anemploymentcontract forafixedtermandanemploymentcontractforanunlimitedterm.

Regardless of its type, the employment contractshould define the parties to it, the contract’s type,thedateof its conclusion,and theconditionsofworkand remuneration, in particular the kind ofwork, thevenue of work, the remuneration for work reflectingthetypeofworkperformedwithaspecificationofthecomponentsofthepay,workingtime,andthedateofcommencement of work. The employment contractis concluded in writing. If this form has not beenpreserved,thenatthelatestonthedayofstartingthework by the employee, the employer should confirminwriting for the employee the conditions as regardsthe parties to the contract, its type and terms andconditions. Additionally, the employer is obligated tonotifytheemployeeinwritingaboutotherconditionsofpayindicatedintheLabourCodewithinsevendaysfromconcludingtheemploymentagreement.Allchangestotheconditionsofworkandpayrequireawrittenform.

Itisalsopossibletoconcludewithanemployeeapart-timeemploymentcontract.Suchemploymentmaynot,however,resultinlessadvantageousemploymenttermsand conditions in comparison to full time employeeswhoperformthesameofsimilarwork.

2. Fixed-term/Open-endedContracts

The Labour Code does not differentiate betweenthe principles of concluding employment contracts.

Independentlyof its kind, theemploymentcontract isconcludedunderthesameprinciples.

Unlimited-term contracts are most typical. Recently,however, there is a trend to depart from this formofemploymenttowardfixed-termcontractsoragreementsincivillaw.

Afixed-termemploymentcontract isconcludedeitheruntilanagreedcalendardateoruntil thedate,whichcanbedefinedbyafact,whichwilloccurinthefuture.

Establishing the duration of a fixed-term contract isnot subject to clear limitations. Nevertheless, judicialdecisionsshowatendencytoquestionthecorrectnessofconcludingcontractsforperiodsthatarelongerthanfiveyears(suchcontractsaretreatedasunlimited-termcontracts).

The Labour Code allows an employer to concludeconsecutivefixed-termemploymentcontractswiththesame employee. However the period of employmentunderafixed-termcontract,aswellasthetotalperiodof employment under fixed-term contracts concludedbetween the same parties of the employmentrelationship, may not exceed 33 months, and thetotal number of the contracts may not exceed three.Moreoverifthetermofemploymentunderacontractof employment for a fixed-term is longer than the 33months, or if the number of concluded contracts ishigher than three, it shall be understood that theemployee,accordinglyasofthedayfollowingthelapseof the 33month period or the date of conclusion ofthe fourth fixed-term contract, shall be hired undera contract of employment for an indefinite term.Additionallytheagreementbetweentheparties,duringthetermofafixed-termcontract,uponalongerperiodof performance of work under the contract, shall beunderstood as a conclusion, as of the day followingthe day of contract termination, of a new contract ofemployment for an indefinite term. There are fourexemptions, when fixed-term employment contractscanexceed theperiod/numbermentionedabove (therelevant district labour inspector must be notified inwrittenbyemployer.):

iii. EmploymEnt contracts


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• forreplacementforanemployeeduringtheir justifiedabsencefromwork,• forperformanceofoccasionalorseasonalwork,• forperformanceofworkforatermofoffice,• iftheemployerindicatesobjectivereasons attributabletotheemployer.

Afixed-termemploymentcontract isconcludedwhen,duetothetypeofwork,itishardtopredictspecificallythe time of its completion. Due to the doubts inestablishingwhen theworkwas completed/when thecontract terminates, this contract is rarely used (it isusuallyusedinthefieldofconstruction).

3. TrialPeriod

Anemploymentcontractforatrialperiodisconcludedin the event when, prior to making a decision oninitiatinganemploymentrelation,oneorbothpartiestheretowish toget acquaintedwith the conditionsofthe future execution of mutual rights and obligationsataworkplace.Itisuptothepartiestoconcludesuchan agreement. The trial periodmay not exceed threemonths. After the trial period, the parties may notconclude another contract for a trial period except inthe situationwhere theemployee is hired toperformadifferenttypeofwork.Itcanbealsoconcludedonce,afterthelapseofatleast3yearsfromtheterminationorexpiryofthepreviousemploymentcontract.

Inprinciple,anemployeecanbeemployedatthesameemployerundersuchacontractonlyonce.However,thepartiesmayextendthetrialperiodforthreemonthsif,intheconcludedcontract,theysetthetrialperiodasashorterone.

4. NoticePeriod

Requiringanoticeperiodinanemploymentcontractisacceptableifprovisionsoflawstateso.TheLabourCodeallowsforanoticeperiodinacontractconcludedforatrialperiod,forafixed-termandforanunlimitedterm.Thenoticeperiodtoanemploymentcontractconcludedforatrialperioddependsontheperiodforwhichthecontractwasconcluded(twoweeks,month,orthreemonthsforbothfixedandunlimitedtermand3workingdays,1weekor2weeksforcontractconcludedfortrialperiod).Thenoticeperiodinanemploymentcontractconcludedforfixedorunlimitedtermdependsonhowlongtheemployee’slengthofservicewas.

Inprinciple,itispossiblethatthepartiestotheemploymentrelationorsocialpartners(bywayofnormativeagreements)introducelongernoticeperiodsthantheonesprovidedforintheLabourCode.However,theprovisionsoftheemploymentcontractornormativeagreementmaynotbelessadvantageousthantheprovisionsrequiredbythelabourlaw.Therefore,itmayhappenthat,inaspecificfactualstate,longernoticeperiodswillbeconsideredasdisadvantageousand,assuch,shallnotbeinforce.


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iv. workinG conditions

1. MinimumWorkingConditions

Themost important principles regarding working andremuneration conditions are set forth in the LabourCode.Nevertheless,theprovisionsoftheLabourCodein this scope constitute only aminimumof employeerights, which can be broadened by the employer.Therefore,theprovisionsofcollectivelabouragreementsand collective settlement agreements as well as therulesandproceduresandstatuteshaveprioritybeforethesolutionsintheLabourCodeandtheprovisionsofotheractsandsecondarylegislationaslongastheyarenot lessbeneficial foremployeesthantheonesoftheLabourCodeandotheractsandsecondarylegislation.Also,undertheemploymentcontractconcludedbythepartiesthereto,itisacceptabletograntemployeerights,whicharemoreadvantageousthantheonesprovidedforintheLabourCode.

2. Salary

Thebasisfortheamountofemployee’sremunerationisfoundintheemploymentcontractconcludedwiththeemployee’semployer.Themostpopularandthemostimportantcriteriaforsettingtheamountofone’ssalaryarethekindofworkandthequalificationsrequiredtoperformtheworkandthequantityandqualitythereof.Forhis/herwork,theemployeehas,however,aguaranteedminimumpay,whichissetpursuanttotheprinciplesandtheprocedureprovidedforintheMinimumWageAct.If,however,ahigherminimumsalaryhasbeensetincollectivelabouragreementsortheremunerationrulesandprocedures,thentheemployerisobligatedtorespectsuchagreementsinplaceoftheact.

Apartfromhis/herbasicpay,anemployeemayreceivedifferentallowances.Grantingthelatterisjustifiedbyspecialcircumstancespertainingtothekindofworkorskillsofanindividualemployee.Additionalremunerationcanbedividedintotheobligatoryones(e.g.,extrapayforworkingovertime,extrapayforworkingatnight),andtheoptionalones(e.g.,extrapayforworkingshifts,servicepremiums).Anemployeecanalsobeawardeddifferentkindsofawardsandbonuses.

3.MaximumWorkingWeek

Theworkingtimemaynotexceedeighthoursadayandfortyhoursinanaveragefive-dayworkingweekinanacceptedsettlementperiod,whichdoesnotexceedfourmonths.Thismeansthataweeklynormalwayshasanaveragecharacteranditscharactermayvarydependingonthesystemandorganizationoftheworkingtime.ThelegislatorintroducesapossibilitytoshortenorextendthesettlementperiodandtheworkingtimeinadayinaccordancewiththecasesdefinedintheLabourCode.Theweeklyworkingtimetogetherwiththeovertimemaynot,however,exceedforty-eighthoursintheacceptedsettlementperiodonaverage.

4. Overtime

Working overtime is accepted in two situations only:in the event when there is a necessity to conduct arescue mission to protect human life or health, toprotect property or the environment, or to remove abreakdown,orintheeventofspecialemployer’sneeds.It is the employer who assesses whether there haveoccurredspecialneedswhichjustifyworkingovertime.

Duetothespecialcharacterofworkingovertimeandthedangers,whichareconnectedthereto,theprincipleistoimposea limit toovertimehours.The limitexclusivelyincludes the work performed as overtime due to thespecial needs of the employer. It is the employer’sduty toensureanemployeeanuninterruptedeleven-hourrestperiodper24-hourday.Theweeklyworkingtime togetherwithovertimemaynot, in turn, exceedforty-eighthours in anaccepted settlementperiodonaverage. Inthecaseofayearly limit,theLabourCodestates that, for anemployee, thenumberofovertimehoursmaynotexceedonehundredandfiftyhours ina calendar year. If the employer is not obligated bya collected labour agreement or by work rules andprocedures, it isacceptabletodefineanother (higher)number of overtime hours in a calendar year. Amaximumyearlynumberofovertimehoursdependontheneedtomaintainthemaximumweeklynumberofworkinghours(onaverage,forty-eighthoursperweekinanaveragesettlementperiod).


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5. Holidays

Anemployeeisentitledtoannual,uninterrupted,paidholidayleavewhoseduration,dependingonthenumberofyearsworked,istwentyortwenty-sixdays.Theholidayleaveisgrantedonthedayswhich,fortheemployee,areworkingdays.Upontheemployee’sapplication,theholidayleavemaybedividedintoparts.Insuchacase,however,atleastonesuchpartoftheholidayleaveshouldlastnotlessthanfourteenconsecutivecalendardays.Theemployeeisentitledtotheremunerationfortheholidayleave,whichhe/shewouldhavereceivedhadhe/shebeenworking.ApartfromtheholidayleavetheemployeeisentitledtoSundaysandpublicholidaysoffwork.Atpresent,therearethirteenpublicholidaysinacalendaryear.


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1. BriefDescriptionofAnti-DiscriminationLaws

Anemployershallrespectthedignityandotherpersonalrightsofanemployeeandemployeeshaveequalrightsforequalperformanceofthesameduties.Thisprincipleinparticularisappliedtotheequaltreatmentofmenandwomenatwork.Itisnotpermissibletodiscriminateanemployee,eitherdirectlyorindirectly,especiallyonthegroundsofaperson’ssex,age,disability,race,religion,nationality, political beliefs, trade union membership,ethnicorigin,denomination,sexualorientation,aswellasemploymentforadefiniteorindefinitetermoronafull-timeorpart-timebasis.

2. ExtentofProtection

Equaltreatmentinemploymentisdefinedasprohibitionofanydiscrimination,directorindirect,onthegroundsreferredhereinbefore.

Direct discrimination shall be taken to occur wherebased on above factors one employee is treated lessfavorablythananotheris,hasbeenorwouldbetreatedinacomparablesituation.

Indirect discrimination shall be taken to occur wherean apparently neutral provision, criterion or practiceputsorwouldputallora largenumberofemployeesbelonging to a particular group at a particulardisadvantageordisproportionononeormoregroundslisted hereinbefore as regards the establishment andtermination of their employment relationship, termsand conditionsof employment,promotionandaccessto training for the development of their professionalqualifications,unlessthatprovision,criterionorpracticeisobjectivelyjustifiedbyalegitimateaimandthemeansofachievingthataimisappropriateandnecessary.

Itisanemployer’sobligationtopreventdiscriminationinemployment.Breachingofthisobligationisajustifiedreason for termination of the employment contractwithoutnoticebyemployee.

Any person who experiences lack of equal treatmentbyanemployerhastherighttocompensationequalatleasttotheamountofthestatutoryminimumwage,asdefinedinseparateregulations.

3. ProtectionsAgainstHarassment

Any unwanted conduct with the purpose or effect ofviolatingthedignityofanemployeeandofcreatinganintimidating,hostile,degrading,humiliatingoroffensiveenvironment is treated as harassment, and sexualharassmentisdefinedasanyformofunwantedconductofasexualnature,or referring toaperson’s sex,withthepurposeoreffectofviolatingthedignityofaperson,in particular when creating an intimidating, hostile,degrading, humiliating or offensive environment,includingverbal,non-verbalorphysicalconduct.

Employees have similar rights regarding bothdiscriminationandharassmentintheworkplace.

Workplaceharassment(mobbing)isanyactorbehaviorrelatingtoanemployeeortargetedagainstanemployeethat involves persistent and long-term bullying orintimidation, resulting in lower self-evaluation by theemployeeofhisprofessionalabilities,withthepurposeor effect of humiliating or ridiculing, isolating oreliminatingthatemployeefromtheteam.

A harassed employee has additional rights if his/herhealth has deteriorated as a result of harassment atwork,andmayclaimfinancial compensation fromtheemployer for thedamage suffered, inparticular ifhe/herterminatedtheemploymentcontractasaresultoftheharassmentincident.Theemployee’sstatementofwillwhenterminatingtheemploymentcontract,mustbemadeinwriting,givingthegroundsforterminationthatjustifytheterminationthereof.

V. Anti-DiscriminAtion LAws

4. Employer’sObligationtoProvideReasonableAccommodations

It is an employer’s obligation to provide a workplaceadequatelyadaptedfordisabledpersons.Theemployermust take into account the limited motor abilities ofdisabledworkers.Thisincludestheneedforadaptationtoa reducedoperabilityof the communication routeswithin the building, stairs (elevator) doors, windows,bathrooms,etc.

Disabledpersonshaveadditionalrights,astheirworkingtimemay be shortened, leavemay be extended andadditional breaks at work may be granted. Howevertheirrightsdependonthelevelofdisabilityadjudicatedby respective authority. Nightshifts and overtimes arestrictlyforbidden.


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1. Cantheemployerrestricttheemployee’suseofInternetandsocialmediaduringworkinghours?

The Employer may restrict the employee’s use ofInternetandsocialmediaduringworkinghours,aswellas monitor access to websites, which are not work-related.Collecteddatafrommonitoringmaybeusedbytheemployerduringtheemployee’sannualevaluation.

2.Employee’suseofsocialmediatodisparagetheemployerordivulgeconfidentialinformation

Theemployeeisobligedtotakecareofthebestinterestsoftheemployer’sestablishmentandkeepconfidentialany information whose disclosure could damage theemployer. Violation of employer’s personal rights orconfidential information may be treated as a seriousbreachoftheemployee’sbasicdutiesandemployermayterminatetheemploymentcontractwithoutnotice.

vi. social mEdia and data privacy


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1. RequiredPermits

The current regulations on employing foreigners inPoland differentiate between the legal situation ofcitizens of EU member states and the legal situationof citizens of the remaining countries. There are alsodifferencesinthescopeofthekindofworkperformedby a foreigner. In the case of some professions, thelawdoesnotrequireapermit,whereasasotheronesrequireapermitissuanceprocedure.

ForeignersfromtheEUmemberstatesandfromastatewithin the European Economic Area as well as theirfamilymembershaveunlimitedaccesstoemploymentinPoland.Foreignersfromothercountriesmustobtainaworkpermitandinsomecases-anentryvisaiftheywanttotakeajobinPoland.

2. ObtainingPermits

A work permit is issued exclusively upon a writtenapplicationofanentity,whichcommissionsaforeignertoperformwork. Suchapermit is issued toa specificforeigner. Furthermore, it defines the entity whichcommissionsa foreigner toperformtheworkand thepositiontheforeigneristoholdorthekindofworkhe/sheistoperform.Theworkpermitisissuedforaspecificterm,howevernotlongerthanthreeyears,andcanbeextended.Besidestheworkpermit,theentitlementofaforeignertoworkinPolandalsorequiresobtaininganappropriatevisaunlesstheforeignerisstayinginPolandlegallybyothermeans.

In some cases, the immigration provisions waive theobligationofaworkpermit.

vii. authorizations for forEiGn EmployEEs


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viii. tErmination of EmploymEnt contracts1. GroundsforTermination

AnemploymentcontractcanbeterminatedonlyonthegroundslistedintheLabourCode.Thismeansthatboththe parties to a collective labour agreement and thepartiestothecontractcannotestablishothergroundsforterminatingtheemploymentcontract.Theycannotcombine or modify individual grounds, either. Theemploymentcontractisthereforeterminated:

• underasettlementagreementbetweentheparties thereto;• byaunilateralstatementofeitherpartytothe employmentagreementwhilepreservingthenotice period(terminationonanotice);• byaunilateralstatementofeitherpartytothe employmentagreementwithoutkeepingthenotice period(terminationwithoutnotice);• upontheendofthetermforwhichtheemployment agreementwasconcluded.

As follows from the provisions of the LabourCode, settlement agreements and terminating theemploymentrelationwithoutnoticepertaintoalltypesof employment contracts. The employment noticeapplies to the employment contract of a trial period,fixed-term,andunlimitedperiod.

TheLabourCodespecifiesthereasons it isacceptableto terminate an employment contractwithout notice.Eachpartyisobligatedtoprovidecauseforterminatingtheemploymentcontractwithoutnotice.Inthecaseofgiving notice to an employment contract, the LabourCode only indicates that the employer’s statement ofgivingnoticetoanemploymentcontractconcludedforan unlimited time should include a reason justifyingthe notice. Both terminating an employment contractwithout notice and giving notice thereto should bemadeinwriting.

2. CollectiveDismissals

Collectivedismissalsarethose,whicharemade intheevent where the employer who employs at least 20employees needs to terminate multiple employment

relations where the employees are not at fault. Thecollectivedismissalmusttakeplacewithin30daysandpertaintoatleast:1)10employeeswhentheemployeremployslessthan100employees;2)10%ofemployeeswhen the employer employs at least 100 employees,however not more than 300 employees; or 3) 30employees when the employer employs 300 ormoreemployees.

Theemployerisobligatedtoconsultwiththecompany’strade organizations or with employee representativesprior to a collective dismissal. The consultationslead to concluding a settlement agreement definingthe principles of actions in the matters concerningemployeesundertheintendedcollectivedismissal.

3. IndividualDismissals

Terminatinganemploymentcontractwithoutnoticeisaunilateralstatementofwillmadebyonepartytotheemploymentrelationstotheotherpartywhichcausesanimmediateterminationoftheemploymentrelation.The Labour Code lists three reasons for immediatetermination due to employee misconduct. The list isexhaustive. The employer does not have to exercisetheoptionshouldhedecidethattheemployee’sfaultybehaviormakesitpossibletocontinueemployingsuchanemployee.Thereasonsare:1)grossviolationoftheemployee’s basic employee duties; 2) the employee’scommittingofacrimeduringtheemploymentrelationwhichmakesitimpossibletocontinuetheemploymentrelation;3)theemployeehaslosthis/herauthorizationswhicharenecessary forhim/her toperform theworkat a given position. Additionally, the employer canterminate an employment contractwith an employeeeffective immediately where the employee is not atfault inthecaseofaprolongedunexcusedabsenceoftheemployeeatwork.

a. is sEvErancE pay rEquirEd?

In connection with terminating employment relationswithin a collective dismissal and individual dismissalsforreasonswhichdonotconcerntheemployee(iftheemployeremploysatleast20employees),theemployee


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isentitledtoaseverancepaymentintheamountwhichdepends on the duration of the employee’s serviceand on the amount of his/her salary. The amount ofthe severance payment may not, however, exceedthe amount of 15 times of aminimum remunerationfor work as set forth in the provisions of the Act onminimumwage(approx.6.300EUR).

Thereare also special categoriesof employeeswhosedismissal requires the employer to pay a specifiedamount of severance payment. Such employees aregovernment agency representatives, teachers andpersonswhoperformhome-basedwork,amongothers.

The right to severance payments can also result fromnormativeagreements.However,theseregulationscanbe less advantageous for the employee than generalsourcesoflabourlaw.

TheLabourCodealsoprovidesforseverancepaymenttoanemployeeinconnectionwithhis/herretirementordisability,andthepaymentofadeathbenefit.

4.SeparationAgreements

There is neither practice nor respective labour lawregardingSeparationAgreements.

5.Remediesforemployeesseekingtochallengewrongfultermination

Anemployeeseekingtochallengewrongfulterminationcan file an appealwith a labour court.Most types ofemployment notices canbe appealed against and theappeal shouldbefiledwith a competent labour courtwithin 7 days from the delivery of the employmentnotice. In such a case, the employee can demand aruling stating ineffectiveness of the termination ofemploymentorreinstatinghim/heratworkonprevioustermsorapaymentofdamages.

In the event of terminating an employment contracteffectiveimmediately,whichtookplacewithaviolationofcurrentprovisionsoflaw,theemployeeisentitledto

aclaimforreinstatinghim/heratworkorfordamages.Thedemandtoreinstatehim/heratworkortobepaiddamages is filed with a labour court within 14 daysfromthereceiptofthenotificationonterminatingtheemploymentcontractwithoutnoticeorfromthedayofexpirationoftheemploymentcontract.

Ineffective Termination of Employment Relation:Terminating an employment contract by way of aunilateral statement of will due to an ineffectivecontract ispermissibleunderPolish law.Thismeansacourt procedure is required to rule on ineffectivenessofsuchastatementorreinstatingtowork.TheLabourCodeallowsforappealagainstadefectiveemploymentnotice only by the employee. If the employee fails toappeal against the received statement, the statementshall have the effect of terminating the employmentcontract(evenifitisdefective).


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iX. rEstrictivE covEnants

1. DefinitionofRestrictiveCovenants

RestrictiveCovenantsareregulatedbyalimitedextentwithinthelaborlaw.

An employee shall not engage in any activity incompetitionwith theemployer,andshallnotperformworkunderanemploymentrelationshiporonanotherbasis to the benefit of any entity involved in such anactivity (non-competition clause) unless such activitystated permissible in a separate agreement. Thisincludesnon-solicitationofcustomers.Thisruleappliesaccordingly to any post-employment non-competitionagreementconcludedbyanemployerandanemployeewho has access to particularly sensitive informationwhosedisclosurecouldcausedamagetotheemployer.The agreement should define the extent of the non-competition clause and the amount of compensationduetotheemployeefromtheemployer.

Non-solicitationofemployeeclausesare invalidbasedon case law as they violate the right to free choiceof employment. No person may be prohibited fromexercisinghis/herprofession.

2. EnforcementofRestrictiveCovenants—processandremedies

If an employer suffers damagedue to the employee’sbreach of the non-competition provisions of theemployment contract, or post-employment non-competition agreement, the employer may claimcompensation.

The non-competition agreement becomes invalidbeforetheexpiryofthetermoftheagreementreferredtotherein,ifthegroundsjustifyingthenon-competitionclause have ceased to exist, or if the employer is inbreachoftheobligationtopaycompensation.

3. UseandLimitationsofGardenLeave

Theemployermayexempttheemployeefromtheobligationtoperformworkuntilthelapseofthenoticeperioduponterminationoftheemploymentcontract.Duringtheperiodofexemption,theemployeeshallretaintherighttoremuneration.


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X. riGhts of EmployEEs in casE of a transfEr of undErtakinG1. Employees’Rights

EmployeerightsinthecaseofatransferofundertakingaredefinedintheLabourCode.Underthelaw,thenewemployerbecomesapartytothecurrentworkrelations.Consequently,undertheprincipleofa legalsuccessor,thenewemployeracquiresanyandallrightsresultingfrom thework relationsestablishedwith thepreviousemployer and all obligations with which the previousemployerwasburdenedtoward theemployeesof theentity.Thisentity’semployeespreservetherightstheywereentitledtopriortothebusinesstransferandtheyare bound by the same duties they had toward thepreviousemployer.

It is the new employer’s duty to inform the companytrade unions, and in the case of their absence – theemployees,abouttheplannedtransferofthecompanyat least thirtydaysbefore theplanned transferof thebusiness. This information should include theplannedtransfer date, the reasons for the transfer, the legal,economicandsocialeffectsthereofontheemployeesaswellastheintendedactivitiesconcerningtheconditionsof employment, in particular the working conditions,salaryandretraining.

An employee of the business being transferred mayend theemployment relationwith thenewemployer.Withintwomonthsfromthetransfer,theemployeecanterminate the employment relation with a seven-daynotice.

However, the transfer onto a new employer cannotconstitutea reason for theemployer to terminate theemploymentrelation.

2. RequirementsforPredecessorandSuccessorParties

The new employer is bound by the content of theemploymentrelationsinforceatthetimeofthetransfer.Thecontentoftheemploymentrelationisshapednotonlybytheemploymentcontractbutalsobynormativeagreementsthehithertoemployerwasapartyto.Thenew employer is obligated to apply the provisions ofcollective labour agreements of employeeswhowerecoveredforaperiodofoneyearpriortothedayofthebusinesstransfer.


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Xi. tradE unions and EmployErs associations1. BriefDescriptionofEmployeesandEmployersOrganizations

Theessenceofthefreedomtoassociate,results inanunrestricted possibility to establish trade unions andemployers’organizationsandtojoinsuchorganizations.ThefreedomisguaranteedbothintheConstitutionoftheRepublicofPolandand intheLabourCode.TheseissuesareregulatedindetailintheActontradeunionsandintheActonemployers’organizations.

The special character of trade unions and employers’organizations results from the fact that theyhave theright to negotiate and to conclude collective labouragreementsandothersettlementagreements.

Employers’ associations are corporate organizations,which have the status of a legal person based oncollectiveness of their members. Such organizationsprotect employer rights and interests in employmentrelations. Therefore, they aim at protecting business,financial and economic as well as organizational andfunctional interests. All employers are entitled to thefreedomtoformemployerassociations.

Tradeunions,ontheotherhand,aresocialorganizations,which associateworkingpeople. They are a voluntaryform of self-organizing and operate on the basis ofstatutorilyshapedorganizationalstructureswhichhavea legal personality. Trade unions represent employeesandprotecttheirdignity,rightsandmaterialandmoralinterests, both collective and individual ones. Theyalso have a right to represent employees’ interestsinternationally. Trade unions co-participate in creatingadvantageousconditionsforwork,lifeandrest.

2.RightsandImportanceofTradeUnions

Themannerofestablishing,theprinciplesoffunctioningandtheentitlementsofthetradeunionsareregulatedin detail in the Act on trade unions. As organizationsaim at representing employees and protecting theirinterests, trade unions are authorized to appear on

their behalf, to conduct collectivenegotiations and toconcludecollectivelabouragreementsaswellasotheragreementstoensureappropriateworkingconditions.They also oversee whether the labour law is beingobserved and participate in supervising the rules andregulations of health and safety at work. They arealsoauthorizedto issueopinionsregarding labour lawdevelopment. Trade unions may conduct economicactivity,howevertheincometherefromshouldbeusedfor statutory tasks and cannot be divided among themembers.

The trade unions have, therefore, an influence onestablishing the proportions of dividing the nationalincome,thecontentoflegislativedecisionsconcerninglabour legislation and social insurance. Trade unionsinsure that the employer complies and appropriatelyimplementsthelabourlegislation,andhaveanimpactonshapingworkingconditions.Inthescopeofindividuallabourlaw,theauthorizationsofthetradeunionspertaintoissuingopinionsonnoticestoemploymentcontractsconcluded for an unlimited term and terminating anemploymentcontractwithoutnotice.Thetradeunionshave this entitlement as regards to their membersand employees who have turned to trade unions torepresenttheirinterests.

3.TypesofRepresentation

Employeescanorganize themselves into tradeunions.A trade union is established under a resolution onits establishment adopted by at least ten personsauthorizedtoestablishatradeunion.Thepersonswhoadoptedaresolutiononestablishingatradeunionalsoadopt the statutes and elect a founding committeecomposedofbetween3and7persons.Anestablishedtrade unionmust be registered. Upon its registration,thetradeunionanditsorganizationalunitsindicatedinthestatutesacquirealegalpersonality.

4. NumberofRepresentatives

Thelawdoesnotintroduceanylimitationsregardingthenumberoftradeunionsfunctioninginagivencompany

orassociatingemployeesofmanycompanies.Theonlylimitation is the requirement toadopta resolutiononestablishing a trade union by at least ten authorizedpersons. An employee can also belong to a few tradeunions.

5. AppointmentofRepresentatives

Each trade union is entitled to representation in thescopeofcollectiverightsandinterestsofallemployeesunder the statutory scope of operations. However,in individual employment relations, trade unionsrepresent the rights and interests of their members.Uponamotionofanon-associatedemployee,thetradeunionmayundertake todefend theemployee’s rightsandinterestsagainsttheemployer.

6. Tasks and Obligations ofRepresentatives

TheLabourCodeandtheActontradeunionsregulatetradeunion rights inemployment relations.The tradeunion concludes a collective labour agreement onbehalf of employees and defines the terms, whichshouldbereflected inthecontentof theemploymentrelation and other provisions, including thoseconcerning mutual obligations of the parties to theagreement.Furthermore, theemployer isobligatedtoconsult or inform the tradeunionabout all-importantdecisionsconcerningemployees.Thispertains to suchissues as the transfer of the workplace onto anotheremployer,anintentiontogivenoticetoanemploymentcontract,conditionsoftelework,agreeingonrulesandprocedures, takingactionswithinhealthand safety atwork,amongothers.

7. Employees’ Representation inManagement

Polish labour law does not provide for employees ortheir representations to participate in managing theemployer’sbusiness.Theexception is commercializingstate entities in which employees retain the right toelectsomemembersofthesupervisoryboardandthemanagementboard.


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Insomecases (e.g.,withintheprocedureofcollectivedismissals),intheeventwhenthereisnotradeunionataworkplace,theemployermustconductconsultationswith representatives of the employees. The principlesof electing employee representatives are defined ateach employer separately. Employerswith at least 50employeescanestablishaworkcouncil.Itisuptotheemployeestoestablishaworkcouncil.Therightsoftheworkcouncilaremostlyconsultativeandadvisory.

Xii. othEr typEs of EmployEE rEprEsEntativE BodiEs


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Xiii. social sEcurity / hEalthcarE / othEr rEquirEd BEnEfits1.LegalFramework

The principles of social insurance coverage and therulesofestablishingsocial insurancecontributionsareregulated in theActon social insurance systemunderwhichtheemployeesaresubjecttomandatorypension,disability,healthandaccidentinsurance.

2. RequiredContributions

the amounts of contributions to pension, disability and health insurance are expressed in the form of a percentage rate that is equal to all insured as set forth in the Act. the percentage rate for accident insurance varies for individual payers of the contribution and is calculated on the level of occupational risks and the effects of the risks. Depending on the type of contribution, it is financed by the employer and the employee in different proportions. nevertheless, it is the employer who is obligated to calculate the amount of the contribution to the social insurance Agency and deduct it from the employee’s income. the employer is also responsible for punctual transfer of the contributions to the social insurance Agency.

3. Insurances

From the contributions made to the social insurance, an employee has a right to sickness benefits, maternity benefits, an attendance allowance, compensation benefits and a funeral allowance and to damages in the event of bodily injury caused by an on-the-job accident. However, health insurance entitles each employee to benefit from public health care centers.

4. RequiredMaternity/Sickness/Disability/AnnualLeaves

the right to maternity leave is connected with giving birth to a child when in the employment relation regardless of the employee’s length of service with the employer. maternity leave is a right, which can be exercised only in kind.

A female employee has a right to maternity leave of 20 weeks upon giving birth to one child. this leave is extended proportionately in the event of giving birth to more than one child. the female employee can use at least six weeks of the maternity leave before the anticipated date of the delivery. she also has a right to additional maternity leave of six weeks, which the employer grants upon the employee’s petition.

An additional 26-week-long parental leave (resulting in a entirety of a 52 week leave related to childbirth) may be granted to any of the parents. As a general rule, the parent on parental leave will receive 60% of his or her basic allowance.

Having used up at least 14 weeks of maternity leave after the delivery, the female employee can renounce the right to the remaining part of the maternity leave. in such a case, the remaining, unused time of the maternity leave is awarded to the employee - the father who is raising the child upon his written request. Additionally, the employee – the father who is raising the child has a right to two-week paternity leave.

5.MandatoryandTypicallyProvidedPensions

the current pension system in Poland consists of three segments generally referred to as the pillars. in the first pillar, the social insurance Agency manages the funds. the means are not invested although they are recorded on the insured person’s individual account and are subject to valorization. the second pillar is based on the operations of open Pension Funds whose task is to trade and multiply the fund. the third pillar consists of the Employee Pension schemes and individual retirement Accounts. the first and the second are mandatory whereas participation in the third one is voluntary.

Pension under the first pillar is calculated on the basis of the sum of valorized contributions recorded on an individual account of the insured at the social insurance Agency, the valorized initial capital and an average lifespan for women and men. the amount of the pension

under the second and the third pillar depends on the investment effectiveness of the funds.

At present, pursuant to the provisions of the Act on social insurance, the retirement age is 67 years for both men and women. Before 2013, the retirement age was 60 years for women and 65 years for men. the new retirement age is introduced gradually. only after reaching this age one may apply for the retirement pension. the exceptions are bridge retirement pensions for those working under special conditions or performing work of special character. such persons have a right to pension benefits at the age of 55 for women and 60 years of age for men.


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A. Sobczyk & Współpracownicy Law Office providescomprehensivelegalservicesforcommercialcompanies.It is considered one of the leading Polish law firmsspecializing in labour law according to both national(Rzeczpospolita and Forbes Poland) and internationalratings (Chambers,TheLegal500,PLCWhichLawyer).The firm associates one of the highest numbers oflawyersspecializinginthefieldoflabourlawinPoland.

The firm provides services for corporate clientsthroughoutPolandandservicesthelargestinternationalcorporations and practically all of the largest Polishcompanies,aswellasfastgrowingmid-sizebusinesses.

A. Sobczyk &Współpracownicy has broad experiencein introducingandapplying innovativesolutions inthescopeof labour law,especially solutionswhichaimatmaking employment relationsmore flexible. The Firmassists its Clients in decision processes, presenting amodernapproachtoissuesinlabourlaw,whilepayingthe utmost attention to minimizing risks. The firm’sexperienced lawyerspractice individual approaches toeachClientwithspecialattentiondevotedtotheClient’sneeds and specificity of the Client’s business and theattorneysstrivetoestablishanunderstandingbasedontrust,partnership,anddialog.

ThefirmhasunsurpassedexperienceinPolandinsolvingcollectivedisputesand innegotiatingcollective labouragreements. We assist in court litigations, includingverycomplexproceedingsinlabourlaw,mobbing,anddiscrimination. A. Sobczyk &Współpracownicy’s teamconsists of lawyers who have rich legal experienceresultingfromtheirexperienceasjudgesorworkingasuniversitylecturers.

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2017

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