Employer Of Record In Poland
Skuad's Poland EOR (Employer of Record) solution helps you to expand your business in Poland without requiring you to establish a local entity. Poland is currently Europe's leading outsourcing hub because of low personnel costs. It is the only country in Europe that successfully avoided recession during the 2008-2009 global financial crisis.
The workforce in Poland has all the essential ingredients to make good employees. The people are ambitious, hard-working, loyal, and eager to learn with an entrepreneurial mindset. But before hiring in Poland, it is important to be well acquainted with the employment laws in Poland, which are stringent. Skuad's Poland EOR solution can easily manage your employment contracts, payroll, recruitment, advisory, taxation, and compliances at considerable pricing, in accordance with Poland labor laws. Connect with Skuad to know more.
Poland at a Glance
population: 40.2 million
Currency: Poland Zloty
Capital: Warsaw
Languages: Polish
GDP: USD 688.13 billion
Employment In Poland
The legal framework of Poland includes the Constitution of the Republic of Poland (a part of which deals with general principles of freedom to work and social rights), international agreements on labor laws issues, the Poland Labour Code, acts and legislations defining employees and employers rights and obligations, and more.
Polish labor law is categorized into common law and autonomous labor law. The common law deals with the acts of Parliament and decrees. It includes the Polish labor code that deals with relations between employers and employees. Autonomous labor law consists of all acts formed by social partners that are recognized by the State as legal acts. For example, collective labor agreements and external collective labor agreements.
In January 2021, the Polish Government made certain changes in the wage structure, such as increasing the minimum wage from 2600 Polish Zloty to 2800 Polish Zloty per month. In terms of overtime, every employer has to pay compensation which has to be more than the employee’s gross earnings and salary for working beyond the working hours.
Foreigners from other European member states and from states within the European Economic Area (EEA) and their family members also have access to employment in Poland. Foreigners from other countries need to obtain a work permit and entry visa if they want to take a job in Poland.
Skuad's EOR solution lets you build, pay, and manage a globally distributed HR team by staying compliant with the laws without setting up another entity. Skuad’s unified employment platform enables organizations to hire the best talent in Poland while adhering to the Poland Labour Code in detail.
| Entitlements
|
Explanation
|
| Statutory Working Hours
|
- 40 hours across 5 days in a week.
- Overtime is allowed in emergencies and when employers have special work requirements, 150 hours per year.
|
| Overtime Eligibility
|
- Overtime is paid at the rate of 150% of the regular pay.
On Sundays/holidays/at night the rate is 200%.
- If employees work between 21:00 and 7:00, then they are eligible for an additional 20% payment.
|
| Weekly Rest Period
|
Between 7 workdays, a rest period on Sunday is given.
|
| Paid Public Holidays |
- New Year’s Day (January 01)
- Epiphany (January 06)
- Easter Sunday (April 04)
- Easter Monday (April 05)
- Labour Day/May Day (May 01)
- Constitution Day (May 03)
- Whit Sunday (May 23)
- Corpus Christi (June 03)
- Assumption of Mary (August 15)
- All Saint’s Day ( November 01)
- Independence Day (November 11)
- Christmas Day (December 25)
- The second day of Christmas (December 26) boxing day
|
| Maternity & Paternity Leave |
- 20 weeks of maternity leave for female employees upon the delivery of one child, with social security benefits.
- 31 weeks if she has delivered twins and up to 37 weeks for five or more children.
- Paternity leave can be availed up to 2 weeks before the child’s birth.
- When maternity leave ends, both parents are entitled to 32 weeks of parental leave or 34 weeks for multiple births. It can be availed at the end of the year when the child turns six years old and up to four segments, each lasting for a minimum of eight weeks, and will receive 60% of their basic allowance.
- Employees who adopt a child are also entitled to the same number of leaves.
|
| Annual Leave Accrual Entitlement |
All employees in Poland are entitled to annual paid vacation depending upon the number of days worked:
- 20 days of paid leave if the employee has worked for less than 10 years.
- 26 days paid leave if the employee has been working for 10 years or more,
(provided that the person who has been employed for the first time gathers 1/12th of their annual leave time for each month that they have worked).
|
| Medical Leave |
- Employees are entitled to 33 days of paid sick leave with a payment of 80% of their standard pay.
- If an employee requires more than 33 days’ leave, the employee is entitled to payment from Social Security for up to 180 days.
- Employees who are aged 50 or above are entitled to the first 14 days of illness from their employer. After that, the employee’s payments are received from social security.
|
| Other Leave |
- 2 days for an employee's wedding or his/her child’s birth, death, or funeral.
- 1 day for an employee's child’s wedding or death, and 1 day for the funeral of the employee's relative.
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| Employment Security & Anti-Discrimination Rights |
Employment contracts must be in writing and signed when an employee begins work and must be translated into a language the employee understands.
Employers are obliged to act against discrimination in employment, and employees can claim damages in Polish court proceedings.
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| Confidentiality of Personal Information |
Data protection is governed by the General Data Protection Regulation (GDPR), which is implemented under the Act of 10 May 2018 on the Protection of Personal Data, and:
- It applies to the protection of the processing of personal data.
- It applies to national regulations on various types of secrecy.
|
Get to know the employment laws with Skuad.
Contractors Vs. Full-time Employees
In Poland, qualified employees are easy to find through a state-paid university system, which produces highly specialized and innovative workers, especially in the IT and engineering fields.
While hiring employees in Poland, every employer needs to know how employment relationships are governed and performed, along with detailed knowledge of Poland's labor code. There are three types of contracts: trial period, fixed-term, and unlimited term. These contracts should mention the parties, such as employer and employee, the date, conditions of work, remuneration, venue of work, and other necessary details as per the type of work.
Therefore, while choosing the type of employment, it is important to consider the above three categories to hire a good team according to your work. With Skuad’s global HR platform, you can easily handle compliance and payroll management of employees.
Hiring In Poland
Hiring in Poland can be done through popular Polish job portals which have many users, and through some professional portals like LinkedIn. You can also post job ads in Polish newspapers. Many international employers conduct interviews virtually in case of remote hiring through online communication channels; for this purpose, one should keep in mind the timing difference.
Also, stick to the background check laws, as conducting background checks during the hiring process is strictly prohibited in Poland. Working with Skuad's EOR team will help you to know the detailed data protection laws along with employees’ rights, working conditions, remuneration, timings, and more. Our team will manage everything from the hiring to the retirement cycle of your employees in Poland.
Connect with Skuad to learn more about the details of the hiring procedure.
Probation & Termination
There is no specific term for a probation period in Poland, but it is defined as a trial period that lasts for 3 months, and a special employment contract is concluded for this. After that, a new employment contract is executed in the form of fixed-term and unlimited terms according to the Poland labor code.
Termination of service
| Topics
|
Explanation
|
| Notice For Termination Of Employment |
Trial period
| Duration of employment |
Notice period |
| Less than 2 weeks |
3 days |
| 2 weeks to less than 3 months |
7 days |
| 3 months |
14 days |
Notice period
| Notice during the probation period: |
- 3 working days’ notice – if the probationary period is up to 2 weeks;
- 1-week notice – if the probationary period exceeds 2 weeks;
- 2 weeks’ notice – if the probationary period exceeds 3 months
|
| Notice for Temporary or Permanent Employment: |
- 2 weeks – if the employee was employed for up to 6 months;
- 1 month – if the employee was employed more than 6 months and less than 3 years
- 3 months – if the employee was employed for 3 years or more.
|
Employment can be terminated by:
Mutual agreement - a ‘statement of will’ of one of the parties with a period of notice (termination of a contract of employment with notice) expiry of the contract term.
The employment contract may be terminated by mutual consent at any time.
|
EOR Solution
Poland Employer of Record (Poland EOR) solution makes it easier and faster to expand your business in Poland, minus the complexities and expenses that may occur while establishing an entity in Poland without a feasibility study.
Connect with Skuad to expand your business internationally with our technology-driven automated and unified platform.
General Employer of Record service terms
|
Taxes that apply to the invoice |
The Total Employer Liability is (up to) 22.14%.
|
|
Minimum duration of service |
3 months
|
|
Currency Accepted |
Polish Zloty (PLN)
|
|
Required Details and Documents |
For Polish Citizens: ID proof, place of residence, CV, bank details, education details.
For Expatriates: Job details, educational qualifications, technical qualifications, CV, copy of passport, copy of ID, bank details, photographs, work permit.
|
Types of Visas In Poland
There are three categories of visas required in the Republic of Poland.
| Visa Category
|
Explanation
|
|
A-Type Visa
|
An A-type airport transit visa is issued only to the citizens of the countries listed below for transiting through the international areas of transport:
Afghanistan, Bangladesh, the Democratic Republic of the Congo, Eritrea, Ethiopia, Ghana, Iran, Iraq, Nigeria, Pakistan, Sudan, and Sri Lanka.
|
| C-Type Visa |
C-type visa, also known as the Uniform Schengen Visa, permits its holder to remain in the territory of all the Schengen area member countries for a maximum of 90 days during 180 days.
|
| D-Type Visa |
D-type national visa permits an individual to enter the territory of the Republic of Poland and to stay continuously or for several successive times for a total duration of more than 90 days during the validity of the visa but not longer than one year.
|
Work Permits
Skuad's EOR solution can help you to seamlessly acquire work permits in Poland, thanks to its robust network in the country. Foreign nationals require a work permit, but the following categories of foreign nationals are exempted from obtaining a work permit:
- Citizens of the EU, European Economic Area (EEA), and Switzerland, and members of their families.
- Foreign nationals with a settlement permit.
- Foreign nationals who have long-term EU resident status in Poland.
- Individuals who were granted temporary protection. refugees, and people granted ‘tolerated stay’ status.
- Other foreign nationals are not obligated to obtain a work permit under specific regulations.
| Work Permits
|
Explanation
|
|
Can Skuad Sponsor a work permit in Poland?
|
Yes |
|
Processing Time
|
2 weeks
|
|
Work Permit Process
|
It is issued by the province governor relevant to the employer’s registered office.
|
|
Work Permit Validity
|
Fixed-term of not more than 3 years, and 5 years in case of management board members.
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| Work Permit Restrictions
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- The foreign national’s remuneration cannot be lower than the remuneration paid to a Polish employee in a similar position.
- The district governor confirms that the vacancy cannot be filled by a person registered as unemployed or seeking employment.
|
| Time frame
|
1-2 months to obtain a work permit.
|
| Exceptions to the restrictions
|
- A work permit is issued at the employer’s request and is the basis on which a work visa is obtained by a foreign national at the embassy in their place.
-
Foreign nationals must legalize their residence in Poland by obtaining a temporary residence permit if their stay in Poland exceeds three months.
|
Payroll & Taxes In Poland
In Poland, every employer should be well aware of basic employee information such as name, date of birth, address, contact number, qualification, and bank account details to which the salary will be transferred. Skuad’s Employer of Record solution has complete knowledge about the valid tax registration compliances like KRS (National Court Register), Central Register, and Information on Economic Activity (CEIDG) that keeps the records in a business register with information on entrepreneurs running their own business as sole traders in Poland.
Skuad ensures proper employment while complying with all the rules and regulations of the host country. Poland is among those nations that have adopted technology with innovative digital payment structures. Every company is required to comply with the Polish laws on income tax, direct or withholding tax, sales tax, etc. The payroll in Poland is classified into simple payroll, local payroll, external or outsourced payroll, and internal payroll. Skuad provides world-class facilities to employ and manage the payroll of competent staff in Poland.
Employer Taxation
| Tax
|
Explanation
|
| Tax Year-End
|
31st December
|
| Sales Tax |
23%
|
| Payroll Tax |
No specific payroll taxes.
|
Employee Taxation
| Tax |
Explanation |
| Income Tax Rates |
Annual Taxable Income under new regime (4% cess added)
| Taxable Income |
Rate |
| Up to PLN 85,528
|
17% |
| Over PLN 85,528 |
32%
|
|
| Filing & Payment |
30th April, and in case of payment from a Polish bank account, the tax payment due is transferred to the Treasury Office bank account on the same day.
In case the payment is made from foreign bank accounts, payments made within the EU are usually booked within 2 days, and payments from other countries within 3 or more days.
|
| Public Pension |
The pension age is 65 years for men and 60 years for women. |
| Health Insurance |
An obligatory contribution of 9% to health insurance, although health insurance contributions are deductible from the employee's tax up to 7.75% |
Incorporation
To incorporate a Limited Liability Company (LLC) in Poland, you should be aware of the taxation and compliance structure of subsidiaries. Several steps are required for the incorporation to engage in any commercial activities; therefore, it is necessary to prepare all the documents for the smooth functioning of the process. The list of documents is as follows:
- Articles of Association.
- Contract or statute with a certified translation in Polish.
- Power of attorney for company registration.
- Founders: The company has a single shareholder, and there are no restrictions on the total number or the nationality of the founders.
- Capital Contribution: 5000 PLN must be paid up in cash or kind before the business is registered.
- Management: At least one person is on the management board, and when the company has more than 25 shareholders, or when the capital exceeds the amount of 500,000 PLN, then the company must have a supervisory board with at least three individuals.
- A REGON number and tax identification number are assigned for the LLC.
- Registration for VAT purposes is also required.
With Skuad’s presence in Poland, you can easily register an LLC in Poland to commence your business activities and directly start hiring employees. Also, it is important to stay compliant with the taxation structure in Poland. The LLC is taxed on its income produced in the country at a fixed rate of 19%. In addition, companies must comply with the annual reporting and audit requirements. Connect with Skuad’s team of experts to handle your business compliances on your behalf. Book a demo here.
Professional Employer Organization (PEO)
The most critical difference between a PEO and an EOR is that while the former acts as your co-employer, the latter acts as the legal employer of your employees. If you opt for PEO services, you will still have to make key decisions on the outsourced activities, whereas an EOR requires no such hand-holding. Once you partner with Skuad’s EOR, Skuad can manage complete HR responsibilities while you focus on other core areas of your business.
Skuad’s EOR solution helps your business expand in Poland with ease according to your business’s requirements. Moreover, Skuad’s experts will also guide you at every stage during the business expansion. Book a demo to learn more.
Conclusion
The most crucial aspect of business expansion and setting up a remote team in Poland is to have a thorough understanding of the local laws and the employment process. However, several factors ranging from the employment types and specific state laws to understanding the prevailing taxation laws can hold back and prolong the business expansion process.
Instead of setting up a new commercial entity and getting immersed in understanding the nuances of the prevailing laws, it is wise to partner with an EOR that will take care of your HR needs. The EOR can ensure the HR practices align with the local legal system and leave no room for lapses or deviations.
Skuad’s globally distributed teams can make hiring exceptional talent in Poland an easy and straightforward process. Skuad can also help manage your payroll and help your company remain compliant with the prevailing laws and taxation on a single unified employment platform. Contact us today to give shape to your ideas for business expansion in Poland.
Get in touch with Skuad to make your expansion dream a reality.
FAQs
1) What is the employer of record in Poland?
An Employer of Record (EOR) becomes your Polish staff's legal employer, handling HR complexities like payroll, taxes, and social security. This eliminates the need for a local entity setup. EORs in Poland ensure compliance with labor laws, lowering legal risks for your international recruitment.
2) What is the EU employer of record?
An EU Employer of Record (EOR) acts as your legal employer in Europe, simplifying workforce management without setting up local entities. They handle HR tasks like payroll, taxes, and legal compliance across borders.
3) What is the employer of record for foreign employees?
Employer of Record acts as an interlink for companies seeking international talent. They assume legal employer responsibilities for your international workers, handling critical HR functions like payroll, tax administration, and benefits management without any local entity.
4) What is the difference between EOR and PEO?
An employer of record (EOR) legally employs individuals on behalf of another company and handles all compliance, payroll, and HR tasks. A Professional Employer Organization (PEO) co-employs staff, sharing responsibilities with the client company but typically requires the client to have an established business entity in the country.
5) Why do I need an employer of record?
An Employer of Record (EOR) handles the international HR complexities you'd otherwise face – payroll, taxes, and compliance. EORs become the legal employer for your global staff, removing the need for a local entity setup.
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