Employment contract

An employment contract gives an employee rights not given by a civil-law agreement such as:

an annual paid holiday leave (20 working days – if an employee’s employment period is shorter than 10 years, 26 working days – if an employee’s employment period is at least 10 years long),
a possibility to obtain extra education at the employer’s expense,
sick leave remuneration,
adding the periods of employment under employment contracts to a total employment period which entitles the employee to pension rights, among other things,
rules on terminating the contract, including protection of a certain group of employees from termination of their contracts,
rules on remuneration for overtime work,
accidents at work,
maternity or parental leaves.

Social and health premiums, as well as tax advance payments are deducted from an employment contract.

An employment contract can be terminated through:

Mutual agreement – a statement made by an employer and by an employee on the termination of an employment relationship (there is no requirement of a special form; it may be concluded at any time of the contract’s duration).
Termination with or without a notice period – a method available for both parties to the contract, in cases defined in the KP. It constitutes a one-sided legal action, that is the lack of the other party's consent has no legal meaning. A notice statement has to be given in writing. Notice not given in this way is still effective, but given with a breach of law, which justifies the employee's claims to recognise the notice as ineffective, to restore to work or to award compensation. This means that the employer must rember that a Labour Court may award compensation to an employee if he sues. Both parties should sign the notice statement, if the employee refuses to accept and to sign the notice statement, the employer should have a witness to confirm that such notice was given. Notice cannot be given to an employee on a sick leave.

Form of employment contract

When it is concluded with a foreigner, it must have a written form because it constitutes one of the conditions of recognising a foreigner's employment as legal (it refers to civil-law agreements as well). A written form has a significant evidence meaning – it allows ascertaining that a contract was of an employment relationship character. The employer's evasion of confirming in writing that an employment contract was concluded with the employee is an offence and is subject to a fine in range from 1 000 PLN to 30 000 PLN.

Employer' s obligations

Verifying (prior to engaging a foreigner) whether he holds a valid document entitling him to reside within the territory of Poland, making a copy of the document and storing it throughout the entire period of the foreigner's work.
If the foreigner is not exempt from holding a work permit, the employer has to apply for an appropriate document allowing the foreigner to undertake legal work (more on this subject can be read in the article: Legal work).
Informing the foreigner about actions taken in connection with the procedure of granting or extending a work permit, any decisions on granting, denying or reversing a permit.
Exercising due diligence in proceedings regarding obtaining a work permit and extending the foreigner's work permit.
Passing on to the foreigner one copy of a work permit or the original of a statement registered by the employer in the Poviat Labour Office.
Providing the foreigner with a translation of the contract in a language understood by him prior to its execution.
Within 7 days of concluding the contract, informing the employee in a writing about his daily and weekly working time and about the frequency of remuneration payments, the number of holiday leave days he is entitled to, and notice period. Information on night shift hours, the place, date and method of remuneration payment, the method of confirming presence at work and of justifying absence should be included in the rules and regulations of a given work place. If there is no rules and regulations, the employer has to provide this information in writing, no later than 7 days from the contract's conclusion.
Making the employee familiar with his basic rights, the wording of the rules and regulations of work, as well as with the rules of health and safety at work.
Sending the employee for pre-employment medical examination to obtain a medical statement that there are no counter-indications for work on a given position.
Opening and keeping for every employee records on matters related to the employment relationship and personal data files.
Counteracting discrimination in the workplace because of sex, age, disability, race, religion, nationality, political beliefs, ethnic origin, religious denomination, sexual orientation, among others.
Issuing the employee with a certificate of employment in connection with the termination (or expiration) of the contract.

Types of employment contracts

Fixed-term – indicates a period for which the contract was concluded by determining the expiry date. Generally, the contract is terminated on the expected expiry date, however, contracts lasting for more than 6 months may have a provision added upon execution allowing an earlier termination with two weeks’ notice. This type of notice needs to have a written form and does not require justification.

Labour Code regulations do not provide for a maximum period for which the contract may be concluded, but concluding a long-term fixed-term contract is against its nature. With contracts which are too long, e.g. 5-7 years, an employee may pursue his right to conclude a contract for an indefinite period in court.

The third consecutive fixed-term contract executed between the same employer and the same employee becomes automatically a contract for an indefinite period unless gaps between those contracts were longer than one month.

This does not refer to contracts for substitution and to contracts concluded for the purpose of casual, seasonal or cyclically performed work – an employer may conclude a discretionary number of such contracts.
In case of pregnant women a fixed-term contract (also a contract for the period of a specific work performance, or a probationary contract longer than one month) which would be terminated after the third month of pregnancy, will be extended until the day of delivery. The above mentioned solution does not apply to contracts for substitution.

Probationary contract – concluded for maximum 3 months, but it is not a fixed-term contract. An employer may then, right after such a contract finished, conclude two more fixed-term contracts without fearing that the third probationary contract will automatically become an indefinite period contract.

It iss subject to termination (without the requirement to provide justification) with notice periods as follows:

3 working days, if the probation period is no longer than 2 weeks,
1 week, if the probation period is longer than 2 weeks,
2 weeks, if the probation period is 3 months.

Contract for substitution – concluded with a person substituting for another employee during his justified absence (e.g. due to long-term sick leaves, during the period of maternity leave). Notice period is 3 working days, regardless of the length of the contract for substitution.

For the period of a specific work performance – concluded when the termination of a specific work performance, entrusted to an employee, is hard to determine. The end of this contract is a day on which an employee finishes the work specified in the contract. This contract, as a rule, is not subject to termination. Its earlier termination however, is possible by mutual agreement.

Indefinite period – the parties do not indicate the day of termination of such a contract. Its termination by an employer is possible only if a justified reason occurred. Notice periods vary depending on the employment period at a given employer, and are:

2 weeks, if the employee was engaged for no longer than 6 months.
1 month, if the employee was engaged for at least 6 months.
3 months, if the employee was engaged for at least 3 years.

A notice period of a week or a month (and their multiple) ends on a Saturday or on the last day of the month, respectively.

In the statement of notice the employer has to give a reason justifying the notice, as well as information on the employee\'s right to appeal to a labour court. An employee handing in his notice does not have to give a reason.

With a reservation of exceptions, the Labour Code introduces particular protection of employees from termination of their contracts of employment, in situations provided for in:

article 39 of the Labour Code (no more than 4 years prior to reaching retirement age),
article 41 of the Labour Code (during holiday leave and other justified absence),
article 177 of the Labour Code (during pregnancy or maternity leave)
article 186(1) of the Labour Code (during a parental leave),
article 186(8) of the Labour Code (during the period of shorter working hours of an employee entitled to parental leave).

Wording of employment contract

An employment contract cannot include provisions less favourable then those indicated by the LC.
An employment contract with a foreigner has to take into consideration conditions included in the work permit.

An employment contract has to define:

The date of conclusion and parties executing the contract (that is an employee and an employer. A definition of an employee can be found in the Labour Code. The definition of an employer can be also found in the Act on promotion of employment, which uses the term „an entity entrusting” defined as an organisational entity, even if it does not have legal personality or a natural person which entrusts performance of work to a foreigner on the basis of a contract or other legal relationship).
Type of an employment contract.
Work and remuneration conditions, including:

Nature of work
Place of performing work – it may by permanent and indicated in the contract as a certain site, e.g. the location of the employer\'s branch. In case of performing work off-site, the employee is on a business trip and the employer covers all costs arising from it, in compliance with adequate regulations.
Working hours – basic daily working hours are 8 hours per day and 40 hours on average in a five-day working week. Unless the parties establish other working hours in the contract, it is assumed to be a full-time employment.

4. Commencement date – an employment relationship is concluded on the date specified in the contract as commencement date and if the date was not specified – upon the day of the contract\'s execution. If the commencement date is specified in the contract, the employment relationship begins on this day, regardless of whether the employee begins work or not. The employment period begins on the day of entering into an employment relationship.

5. Remuneration for work

Amendments to any of the contract\'s provisions may be made by mutual agreement of the parties or by a one-sided decision of the employer when it is in the employee\'s favour, or by means of termination of work and remuneration conditions.

Indications of remuneration protection

An employer is obliged to pay remuneration at least once a month on a permanent and fixed in advance date, no later than on 10th day of the month. If the fixed day is a non-working day, remuneration shall be paid on the preceding day.

he employer, on the employee\'s demand, has to make documents on the basis of which the employee\'s salary was calculated available for perusal. The employee can neither waive his right to remuneration, nor transfer it to another person. A contract under which the employee disposes of the right to remuneration contrary to the above mentioned ban is invalid.

The salary shall be paid personally to the employee or in another way if the employee previously gave his consent in writing.

Making deductions from the remuneration is possible only in cases and within the limits provided for by the Labour Code and separate regulations.

An employee engaged full-time has the right to at least minimum remuneration (article 13 of the Labour Code and article 6 of the Act on the minimum remuneration for work). In 2015 the minimum gross salary is 1750 PLN.

Not paying remuneration for work or another benefit on the date fixed in advance, or its unjustified lowering or making unjustified deductions constitute an offence and is subject to a fine in the range from 1 000 PLN to 30 000 PLN.

Conclusion of a civil-law agreement instead of an employment contract

Whether an employee remains in an employment relationship or a civil-law relationship with an employer is decided by the contract\'s wording and not by its name.

An employer concluding a civil-law agreement in conditions in which an employment contract should be concluded commits an offence against the employee, sanctioned by a fine in the range from 1 000 PLN to 30 000 PLN.

If a civil-law agreement shows features of an employment contract, then the employee may demand recognition of the existence of an employment relationship in court. However, it is the employee\'s responsibility to prove that the contract really showed features of an employment contract.

In the event of a court\'s recognition that the contract is in its nature an employment contract, the will of the parties’ to give it another nature is unimportant.

In the light of article 22 § 1 and 11 of the Labour Code, a court may establish the existence of an employment relationship even when the parties conclude a civil-law agreement in good faith, but its wording or the method of its realisation reflect the features of an employment relationship.