Employer of Record In Poland

With the aid of Poland’s EOR (Employer of Record) solution, you may grow your company there without having to create a local firm. Due to its affordable labour, Poland is now Europe’s top outsourcing country. During the global financial crisis of 2008–2009, it was the only nation in Europe to have successfully avoided a recession.

Poland’s labour force possesses all the qualities needed to produce effective workers. The population is aspirational, diligent, devoted, willing to learn, and has an entrepreneurial spirit. However, it’s crucial to be well-versed in Poland’s strict employment rules before making a hiring decision.  In accordance with Polish labour rules, Poland EOR solutions can manage your employment contracts, payroll, recruiting, advising, taxation, and compliances with ease and at a reasonable price. 

Overview of Poland

• Estimated population: 38.5 million
• Currency: Poland Zloty
• Capital: Warsaw
• Languages: Polish
• GDP: $1.363 Trillion

Employment Landscape In Poland

The legal system of Poland contains a number of provisions that control how labour relations are handled there. These include the Republic of Poland’s Constitution, which promotes the core ideals of social and labour rights. Along with the Poland Labour Code and other acts and regulations that specify the rights and obligations of employees and employers, international agreements on labour laws also play a part.

Common law and independent labour law are the two basic divisions of Polish labour law. Acts of Parliament and executive orders make up common law, with the Polish labour code, which governs employer-employee interactions, receiving substantial attention. Contrarily, independent labour law includes social partner agreements that the State recognizes as having legal force. 

The minimum wage was raised from 2600 to 2800 Polish Zloty per month in January 2021 as part of adjustments to the pay system made by the Polish government. Employers are expected to compensate employees for working beyond ordinary working hours in excess of their gross profits and salaries.

There are work prospects in Poland for people from other European Union (EU) members as well as those that are a part of the EEA. However, in order to work in Poland, non-EEA nationals must receive a work permit and entrance visa.

An Employer of Record (EOR) solution is offered to make it easier to comply with Polish labour rules and guarantee smooth HR operations. With the help of this technology, businesses may build, pay for, and oversee an HR team that is dispersed around the globe while still adhering to the strict requirements of the Polish Labor Code. Organisations may hire outstanding personnel in Poland while adhering to regulatory standards by using our unified employment platform.

Entitlements	Explanation
Statutory Working Hours	Overtime is permitted in emergencies and when companies have unique work requirements, up to 150 hours annually, and it is spread out across 5 days of the week for a total of 40 hours.
Overtime Eligibility	The rate of overtime compensation is 150% of the usual wage. The fee is 200% on Sundays, holidays, and late at night. Employees are entitled to an extra 20% salary if they labour between 7:00 and 21:00.
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) Second day of Christmas (December 26) boxing day
Maternity & Paternity Leave	The welfare of workers and their families is ensured by the labour regulations that are in existence, which significantly promote parental leave in Poland. Following the birth of a child, female employees are entitled to 20 weeks of paid maternity leave during which they are also eligible for social security payments. This time can be extended to 31 weeks in the event of twins, and to 37 weeks in the case of families with five or more children  Paternity leave is another benefit provided to fathers, and it can be taken up to two weeks before the baby is born. Both parents have the right to take advantage of 32 weeks of parental leave following the end of maternity leave. This time frame is increased to 34 weeks in the event of multiple births. Parental leave is divided into four parts, each lasting a minimum of eight weeks, and is available until the kid is six years old. Employees are paid 60% of their base salary during this time. Additionally, workers who decide to adopt a kid have the same number of leave weeks available to them as parents who gave birth to the child naturally. With the help of this clause, adoptive parents are guaranteed equal chances to form relationships with and provide for their adopted children. These thorough clauses show Poland’s dedication to encouraging a healthy work-life balance and fostering family harmony. The well-being of both employees and their children is prioritised by the labour regulations in Poland by providing possibilities for longer maternity and parental leave.
Annual Leave Accrual Entitlement	In Poland, every worker has a right to a yearly paid vacation, based on the number of days worked: 20 days of paid leave if the worker hasn’t been there for at least ten years. 26 days of paid leave if the employee has worked for at least ten years (providing that the new hire accumulates a quarter of their yearly leave for each month that they have worked).
Medical Leave	Workers have a right to 33 days of paid sick leave, which is reimbursed at 80% of their regular income. If an employee needs more than 33 days off, they are eligible for social security benefits for up to 180 days. Employers must cover the first 14 days of an employee’s illness if they are 50 years of age or older. The employee then receives income from social security after that.
Other Leave	Two days for a worker’s wedding or the birth, death, or funeral of his or her kid. One day for a worker’s child’s wedding or death, as well as one day for a worker’s relative’s funeral
Employment Security & Anti-Discrimination Rights	When an employee starts working, an employment contract must be written, signed, and translated into a language the employee can comprehend. Employees may file a lawsuit in Poland for damages and employers are required to take action against employment discrimination.
Confidentiality of Personal Information	The General Data Protection Regulation (GDPR), implemented by the Act of May 10, 2018, on the Protection of Personal Data, governs data protection and:  Applies to the protection of the processing of personal data;  Applies to national regulations on different types of secrecy.

Contractors Vs. Full-time Employees

Poland’s state-funded university system, which turns forth highly skilled and creative labourers, particularly in the IT and engineering industries, makes it simple to recruit competent personnel.

Every employer recruiting workers in Poland must have a thorough understanding of Poland’s labour laws as well as how employment interactions are managed and carried out. Contracts can be of three different types: trial duration, fixed length, and unlimited term. These contracts should list the parties, such as the employer and employee, the date, the terms of the job, the compensation, the location of the work, and any other pertinent information based on the nature of the work.

As a result, it is crucial to take into account the aforementioned three categories while deciding on the type of employment in order to assemble a capable team for your tasks. You can manage employee payroll and compliances with ease with our global HR platform.

Recruitment In Poland

Polish job platforms with a large user base and professional portals like LinkedIn are both good places to look for employment in Poland. Polish newspapers also allow job postings. In cases of remote recruiting, many foreign companies conduct interviews virtually using online communication channels; for this reason, one should be aware of the time difference.

Additionally, abiding by the regulations governing background checks, as doing so during the recruiting process is outright forbidden in Poland. Working with our EOR team will assist you in learning about the specific data protection regulations as well as employee rights, working conditions, pay, timetables, and other information. The hiring process through the retirement cycle of your workers in Poland will be handled by our staff.

Probation & Termination

In Poland, there is no set duration for a probationary period; nonetheless, it is described as a 3-month trial period, and an exclusive employment contract is reached for this. Following that, a new work contract is completed in accordance with the Polish labour legislation in the form of a fixed-term and unlimited term. 

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 for 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 – the expiration of the contract term or one party’s “statement of will” with a notice period (such as the termination of an employment contract). The employment agreement may end at any moment with mutual permission.

EOR Solution

Poland Employer of Record (Poland EOR) solution removes the complications and costs that may arise when creating an organisation in Poland without a feasibility study, making it simpler and faster to develop your business in Poland.

 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	ID evidence, address, a resume, bank information, and information about your schooling are required for Polish citizens. Job information, educational and technical background, a resume, a copy of a passport or other form of identification, bank information, photos, and a work permit are all required for expatriates.

Types of Visas In Poland

Visa Category	Explanation
A-Type Visa	For travelling via the international regions of transport, only nationals of the following nations are eligible for an A-type airport transit visa: Afghanistan, Bangladesh, the Democratic Republic of the Congo, Eritrea, Ethiopia, Ghana, Iran, Iraq, Nigeria, Pakistan, Sudan, and Sri Lanka.
C-Type Visa	The Uniform Schengen Visa, commonly known as a C-type visa, allows its bearer to stay on the soil of all Schengen area members for a maximum of 90 days throughout the course of 180 days.
D-Type Visa	A person with a D-type national visa is allowed to enter the Republic of Poland and remain there continuously or intermittently for a total of more than 90 days while the visa is valid, but not more than one year.

Work Permits

Thanks to our broad network throughout Poland, Employer of Record (EOR) solutions may easily shorten the procedure for obtaining work permits there. While a work permit is often necessary for foreign nationals, several groups are excluded from this rule:

• citizens of Switzerland, the European Economic Area (EEA), and the European Union (EU), as well as their families.
• individuals from abroad who have a settlement permit.
• foreign nationals have permanent residency status in the EU in Poland.
• Refugees and individuals with “tolerated stay” status are among those who have received temporary protection.

Work Permits	Explanation
Can we Sponsor a work permit in Poland?	Yes
Processing Time	2 weeks
Work Permit Process	In relation to the employer’s registration information, the provincial governor issues it. office.
Work Permit Validity	3 years at most for a fixed term, and 5 years for management board members.
Work Permit Restrictions	• The district governor acknowledges that the vacancy cannot be filled by a person registered as jobless or seeking work • The foreign national’s compensation cannot be less than the compensation provided to a Polish employee in a comparable role.
Time frame	1-2 months to obtain a work permit.
Exceptions to the restrictions	• An employer requests a work permit, which is then used by the embassy to apply for a work visa on behalf of the foreign nationals. If foreign citizen plans to stay in Poland for a period longer than three months, they must get a temporary residency visa.

Payroll & Taxes In Poland

In Poland, every employer is required to be well-versed on the fundamental data of each employee, including name, date of birth, address, phone number, education, and bank account information to which the income will be deposited. The Employer of Record solution is fully aware of the legal tax registration requirements, including the National Court Register (KRS), Central Register, and Information on Economic Activity (CEIDG), which maintains records in a business register with information on entrepreneurs operating their own businesses as sole traders in Poland. 

While adhering to all laws and regulations of the host nation, our company assures proper employment. Poland is one of the countries that has embraced technology and implemented cutting-edge digital payment systems. Every business must abide by Polish tax rules, including those pertaining to sales tax, direct or withholding tax, and income tax. Simple payroll, local payroll, external or outsourced payroll, and internal payroll are the several categories of payroll in Poland. We offer top-notch facilities for employing and managing the payroll of qualified employees 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 the new regime (4% cess added) Taxable Income Rate Up to PLN 85,528 17% Over PLN 85,528 32%
Filing & Payment	30th April, and if using a Polish bank account, the tax payment is made that day and deposited to the Treasury Office bank account. Payments made from foreign bank accounts are typically booked within two days for payments made inside the EU and three days or more for payments made from outside the EU.
Public Pension	The Pension age is 65 years for men and 60 years for women.
Health Insurance	9% mandatory payment to health insurance; however, up to 7.75% of this amount is tax deductible by the employee.

Understanding the taxes and compliance framework regulating subsidiaries is crucial when forming a Limited Liability Company (LLC) in Poland. There are various parts in the procedure, so it’s essential to get all the paperwork ready to ensure a quick and easy incorporation. The following records are necessary:

• Articles of Association.
• Contract or statute, with a certified translation in Polish.
• Power of attorney for company registration.
• Founders: The company can have a single shareholder, and there are no restrictions on the nationality or total number of founders.
• Capital Contribution: A minimum of 5000 PLN must be paid in cash or kind before the business can be registered.
• Management: At least one person must be on the management board. If the company has more than 25 shareholders or the capital exceeds 500,000 PLN, a supervisory board with a minimum of three individuals is required.
• The LLC is assigned a REGON number and tax identification number.
• Registration for Value Added Tax (VAT) purposes is also mandatory.

We can help you simply create an LLC to start your company operations and make direct staff recruiting easier because of our presence in Poland. Maintaining conformity with Poland’s tax system is essential. LLCs must pay a flat tax rate of 19% on all domestically earned revenue. Businesses must also follow yearly reporting and audit standards. Our team of professionals is prepared to assist you in managing your company compliances so that your activities continue to fully comply with Polish rules.