Hire in Poland

Challenges of Hiring in Poland

Although international business in Poland is hugely advantageous, it is not exempt from challenges and obstacles. A powerful global management team is of the utmost importance for tackling these.

Challenge #1: Employment Laws

Poland has some stringent labor laws to guide various aspects of the employment relationship. These include wages, overtime compensation, employee benefits, and leave policies. Some of the most common provisions include,

• Under the labor laws, the probationary period in Poland is limited to 90 days.
• In the event of termination, a notice period ranging from two weeks to three months is necessary.
• In Poland, employees can take 20-26 days of annual paid leave, depending on their tenure. 

Understanding the employment laws while maintaining compliance is often quite challenging for most enterprises. This is especially true when you lack the required legal support and expertise to guide you through this international hiring journey.

Challenge #2: Payroll

The payroll system in Poland comprises various stringent policies and intricacies that can often be difficult for employers to understand. 

• The income tax rate for individuals in Poland differs from 12%-32%, depending on the income. 
• The employer cost comprises 22.48% for an annual salary of USD 60,000.
• Additionally, both employers and employees are mandatorily required to contribute to the Polish social security system, which includes pension and disability insurance.

You need a powerful payroll solution to ensure accuracy and compliance with Poland's payroll laws. However, to achieve this, you must spend a lot of money and energy, which is not always possible, especially for small to medium enterprises. 

Challenge #3: Competitive Talent Landscape

• The talent shortage has been a prevalent issue in Poland for a long time. This is significantly more prominent in healthcare, ICT, and engineering. 
• Companies are struggling to find suitable candidates, which has resulted in multiple job vacancies. 
• Some main reasons include the lack of necessary training programs, the difference in salaries between Poland and other Western European countries, and an aging population.

Talent shortages and skill gaps are some of the most common business problems you will likely encounter when considering international hiring. To address these dilemmas, you need a robust global hiring strategy. When implemented correctly, it will enable you to reach a much larger pool of eligible candidates and can lead to higher savings.

Challenge #4: Language Barrier

• The lack of knowledge of the Polish language is one of the biggest challenges you will likely encounter when employing in Poland.
• Polish is a complex language, and not everyone can learn it quickly.
• As a result of this, foreigners often find it difficult to interact and establish contact with Poles.

How to Hire in Poland

Hiring employees from Poland can be a complicated affair if you don’t know the right strategies. 

To help you with this, the three most effective ways to hire in Poland are mentioned below. 

• Setting up a local entity
• Hiring employees via EOR
• Hiring contractors via AOR. 

Setting up a local entity

• The traditional way to hire in Poland is to set up a formal business entity. 
• It allows you to operate legally in the country and directly manage the employment lifecycle. 
• However, it is an extensive process that involves various components, including legal expenses, compliance with labor laws, and other logistical hassles.

Hiring employees via EOR

• Partnering with an Employer of Record is a cost-effective way of hiring Polish employees.
• They assume the responsibility of a legal employer, managing employment contracts, onboarding, compliance, payroll, benefits, and more. 
• This allows for flexibility and scalability of a business, as you can quickly enter a new country and start hiring right away.

Hiring contractors via AOR

• One of the best ways to hire contractors in Poland is to seek the services of an AOR or Agent-of-Record.
• Although not a legal employer, an AOR will assist you with local compliance and administrative tasks. 
• This is especially suitable for businesses that require legal expertise while retaining complete HR control.

Cost of Hiring in Poland

When you decide to hire in Poland, a detailed understanding of the costs involved is crucial. 

There are two main types of costs. They are namely, 

• Direct Costs: Salary, wages, employee benefits, and onboarding and training expenses. 
• Indirect Costs: Administrative fees, legal and compliance, and workplace safety costs.

Navigating these expenses while maintaining accuracy can be tedious, especially if you think about doing it manually. To ease this burden, Skuad offers the country cost calculator, the ultimate solution for managing all the expenses in the employment lifecycle. 

Moving on, the expenses related to the above-mentioned hiring methods will also differ based on the hiring method you deploy. Let’s take a look. 

A Brief About Employment Laws in Poland

Labor laws in Poland comprise three principal statutory regulations. They include the following, 

• The Labor Code: It establishes the rights and duties of both employers and employees and manages key aspects of employment, such as contractual agreements, standard working hours, and employee remuneration.
• The Trade Unions Act lays down strict guidelines for labor disputes and strikes and the formation and rights of trade unions in Poland.

The Employment Promotion and Labor Market Institution Act: Primarily deals with employment promotion, vocational counseling, and training programs for unemployed job seekers.

Hire in Poland with Skuad

In today’s world, the need to hire and manage talent internationally has become more critical than ever. To help you with this, we present the ultimate international hiring solution - Skuad. It is a comprehensive platform that integrates all crucial aspects of the hiring journey in one single space. 

Struggling to comply with country-specific labor laws? Skuad Shield simplifies all legal complexities.

Worried about paying your employees or contractors on time? Skuad runs payroll in over 100 currencies, maintaining accuracy and efficiency. 

Experience Skuad today and ensure a seamless and stress-free international hiring journey!

FAQs

1) How much does an employee cost in Poland?

The cost of an employee in Poland is influenced by various factors such as gross salary, social security contributions, and other employer obligations. For example, employers must contribute 16.26% and 1.67% of the total gross wage to pensions, disability insurance, and accident insurance, respectively. 

2) What are the employment rules in Poland?

The Polish Labor Code is the primary labor law in Poland, dealing with various aspects of the employment relationship. Under the same, employees in this country are entitled to 20-26 days of annual paid leave and up to 182 days of sick leave.

3) Are US citizens allowed to work in Poland?

Yes, non-EU citizens, including US candidates, can work in Poland, provided they can furnish two documents. These are a work permit that allows foreign nationals to work legally in Poland and a work visa that allows the individual to live in Poland. 

4) What are the regular working hours in Poland?

The standard working time in Poland is 40 hours per week.