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 are 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
Estimated population: 38.5 million
Currency: Poland Zloty
GDP: $1.363 Trillion
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, 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 wages 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.
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 compliances and payroll management of employees.
Hiring In Poland
Hiring in Poland can be done through popular Polish jobs 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 under 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 the fixed-term and unlimited term according to the Poland labor code.
Termination of service
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
Types of Visas In Poland
There are three categories of visas required in the Republic of Poland.
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.
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 registrations 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.
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 are 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 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 take 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.
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 leaves 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.