In the heart of Central Europe lies Poland, a country with a rich history, high standards of living, and a strong economy. Known for its safety, economic freedom, and free university education, Poland has become an attractive location for businesses seeking to expand into their skilled labor pool.
However, understanding the local labor laws is essential when hiring and managing employees in Poland.
In this guide, we'll delve into Poland's labor market, Polish employment laws, tax regulations, and more to ensure your business operations comply with Polish and European Union (EU) standards.
Labor Laws in Poland: What You Need to Know
Polish labor law is primarily governed by the Labour Code (Kodeks Pracy) and a series of acts that set out employees' and employers' rights and obligations. While the Labour Code is the central legislation, certain aspects of employment relationships are regulated by other statutes, such as the Labor Code of 1974 and the Non-working Days Act of 1951.
In addition to statutory law, other legally binding sources of labor law include collective bargaining agreements negotiated between employers (or their organizations) and trade unions, as well as workplace-level regulations and remuneration policies.
Workplace regulations are an essential part of Poland’s labor framework. Employers with at least 50 employees are required to adopt regulations that outline working hours, payment dates and procedures, and health and safety obligations.
Employers with fewer than 50 employees aren’t obligated to issue formal regulations but must provide written information on organizational and procedural matters within seven days of hiring a new employee.
Poland’s labor laws are designed to ensure both compliance with national labor standards and EU regulations, as well as provide flexibility for individual organizations.
Who Is Covered by Employment Laws in Poland?
The Labour Code applies to individuals employed under an employment contract or in similar employment relationships, such as those arising from appointment, election, or cooperative employment arrangements.
This legislation sets out the mutual rights and obligations of employees and employers, providing protections such as limits on working hours, rules on leave, and standards for workplace health and safety.
However, individuals working under civil-law contracts generally aren’t covered by the Labour Code. While these workers don’t have the full scope of statutory employment rights, those under a contract of mandate are entitled to a legally guaranteed minimum hourly wage.
Polish labor laws extend to both citizens and foreign nationals, provided certain legal conditions are met, such as holding valid work permits. For Polish residents employed by an international company, applicable labor laws may be determined by the employer and employee agreement, as long as they don't deprive the worker of protections guaranteed under Polish or EU law.
Employment Contracts and Probation Periods
Every employment contract should highlight the employment start date, compensation, working hours, deliverables, and anything else relevant to the offered position.
There are four types of contracts in Poland:
- Trial-period contracts: This contract type serves as a probationary phase, limited to three months, allowing employers to assess an employee's suitability. Renewal of a trial period contract for the same role is not permitted. The contract can be renewed only for a different job position, and this must be formally requested in writing.
- Definite-period contracts: Employers can offer a fixed-term contract for a maximum of three months, and it can only be renewed three times. Upon the fourth renewal, the employer must provide an indefinite employment contract for any further tenure.
- Indefinite-period contracts: This type blends aspects of fixed-term and trial-period agreements. It begins with a probationary period and has no set expiration date. The indefinite contract remains active until either party opts for termination or if there's a breach of contract terms.
- Specific-task contracts: These types of contracts are short-term, usually for seasonal jobs or contracted work, and expire upon completion.
Working Hours & Wages
As of January 1, 2025, the minimum wage in Poland is PLN 4,666 for a standard 40-hour workweek, or eight hours per day. Working hours and overtime rules may vary depending on the employee’s profession.
Overtime work is usually capped at 150 hours per year; however, a collective bargaining agreement or employment contract may stipulate overtime differently. However, no more than 48 hours of work per week is allowed under current EU legislation.
Employees working overtime at night, on Sundays, or public holidays receive an additional 100% of their regular pay for those hours. The rate is an extra 50% of regular pay for overtime on other days. Employers may also choose to provide time off instead of paying for overtime.
Health & Safety Standards
Polish employers must maintain comprehensive workplace health and safety standards.
These requirements include the following:
- Providing healthy and safe working conditions
- Conducting regular workplace risk assessments and first-aid training
- Supplying working clothes, personal protective equipment, and supportive meals and beverages free of charge, depending on the type of work
- Establishing emergency procedures
- Providing hygienic and sanitary facilities
Poland also has robust anti-discrimination laws within its labor regulations, covering various grounds to ensure equal treatment and protection of employees from discrimination in the workplace. The Polish Labor Code prohibits discrimination based on gender, age, disability, race, religion, nationality, political beliefs, trade union membership, and sexual orientation.
Employer Taxes
- Social Security: Employers contribute between 19.21% and 22.41% of an employee's gross salary to Social Security as of 2025, depending on their work accident insurance rate. Contributions for pension and disability insurance are capped at PLN 260,190.
- Employee Capital Plans (PPK): Employers contribute 1.5% of gross salary to PPK, with the option to increase it up to 4%.
- Healthcare: Employers contribute 9% of an employees’ gross salary toward public healthcare.
Termination Guidelines & Severance Pay
In Poland, there are four ways to end an employment relationship between an employer and employee:
1. Mutual agreement: Employment can end with both parties' consent, with no restrictions on initiation, timing, or contract type.
2. Via Notice Period: Employees can resign at any time, but must provide the required amount of notice as outlined in their employment contract.
Employers must have specific, genuine reasons to end an indefinite contract with just cause and cannot compensate in lieu of notice. In this case, employers will bear the burden of proof to justify the termination. The notice period depends on the length of employment and is between two weeks and three months.
3. Immediate Termination:
- By employer: Employers have one month to act upon discovering severe employee misconduct, crime confirmation, or loss of necessary licenses.
- By employee: For employer's severe breach of obligations or health reasons after a medical certificate.
- Due to employee's inability to work: Including prolonged illness (longer than the duration of employment) or unjustified absence.
4. Contract expiry: The relationship will conclude at the end of the contract period unless it's renewed for probationary or fixed-term contracts.
Severance Pay
If an employee is let go due to redundancy/group dismissal, or for reasons that aren’t attributable to the employee or their performance, the employee is entitled to severance pay based on their length of service with the company as follows:
- 0-2 years: One month's salary
- 2-8 years: Two months' salary
- 8+ years: Three months' salary
Health Insurance
Poland provides universal healthcare through the National Health Fund of Poland (NFZ). It’s free for all citizens who fall under the "insured" category, which typically includes those with employer-paid health insurance or those who are the spouse or child of an insured person.
Paid Leave Laws
Vacation & Holiday Leave
Poland has 13 public holidays, and employees are entitled to annual paid time off based on how long they have worked at a company.
- Less than 10 years: 20 days
- 10+ years: 26 days
Sick Leave
Employees are entitled to paid sick leave in Poland, though the length of the leave depends on the employee’s age and how long the employee has worked at the company.
Employers must pay 80% of the employee's salary for the first 33 days of leave (14 days if the employee is 50+ years old), and Social Security covers the rest. If the illness continues past this point, the employee can receive Social Security benefits.
Employers pay 100% of the employee’s salary if they suffer from an accident on the way to or from work, if they fall ill during pregnancy, or if they’re undergoing necessary medical examinations to donate or collect cells, tissues, or organs.
Maternity Leave
Pregnant employees are entitled to 20 weeks of paid maternity leave, or 31 weeks in the case of twins. Social Security covers the leave at 100% of the employee’s salary, and at least 14 weeks must be taken after the child’s birth. Adoption leave is also available.
Paternity Leave
Fathers can receive two weeks of paid paternity leave, which must be taken within two years after the birth. If the mother wants to return to work early (after the 14 weeks of mandatory maternity leave), the father can use the remaining balance of the maternity leave. Employees can also receive adoption leave.
Parental Leave
Parents in Poland can also take up to 41 weeks of paid parental leave after maternity leave. This leave is paid at 70% of the salary and can be used entirely by one parent or simultaneously by both parents.
Polish Independent Contractors
Independent contractors run their own businesses, control their working methods, and can serve multiple clients at once. They typically provide their own equipment, set their own hours, and invoice for their services rather than receiving a fixed salary. They are also responsible for their tax filings and paying into the Polish social insurance system.
Companies can hire independent contractors in Poland, but misclassifying an employee can have serious consequences, including fines as well as owed back taxes and social insurance contributions.
Penalties for Not Following Polish Labor Laws
Failing to comply with Polish labor laws can lead to hefty fines, administrative sanctions, and even criminal charges.
Financial penalties typically range from PLN 1,000 to PLN 30,000 for violations such as late wages, unsafe working conditions, or breaches of working time rules. Serious offenses, including illegal employment of foreign workers, can carry fines of up to PLN 50,000 and, in some cases, prison sentences.
Administrative measures may include corrective orders from the State Labour Inspection, suspension of operations, loss of government subsidies, and blacklisting from contracts.
Employees can also bring claims against employers for unpaid wages, wrongful termination, or discrimination, which may result in compensation equal to at least the national minimum wage or reinstatement to their position.
How to Stay Compliant When Hiring in Poland
Companies hiring in Poland must comply with strict labor, tax, and Social Security regulations.
One option for companies to ensure compliance is to establish a local legal entity in the country; however, this can take months to set up, and it requires ongoing obligations such as social insurance registration, payroll tax filings, employee recordkeeping, and adherence to workplace safety rules.
Another option is to partner with an Employer of Record (EOR) to hire Polish employees without opening a local entity. An EOR acts as the legal employer and handles contracts, payroll, benefits, compliance, and more.
Hire in Poland with RemoFirst
Navigating Polish labor laws requires careful attention to regulations, contracts, and compliance procedures, and getting it wrong can be costly.
Partnering with an EOR like RemoFirst enables you to hire in Poland confidently — and 185+ other countries — and remain compliant as labor laws change.
Book a demo to see how RemoFirst can simplify your global hiring.
