New employment rules for foreign employees in Poland came into force on January 1, 2025. These changes will affect the majority of foreign employees in Poland and other employees with foreign citizenship. The main reform involves the necessity of an open employment contract for the primary employment relationship model. This step is intended to promote a more stable employment situation, improve labor protection, and combat ‘dark employment.’
Data Specifications of the New Legislation
The new rules dictate that all foreign workers will only be allowed to work based on specific employment arrangements, primarily:
Employment contract: This is the most common and stable form of working relations. It implies basic social security, such as paid leave, sickness allowance, and pension contributions.
- Appointment to a position.
- Election to a position.
- Employment contracts through co-operation.
Foreign workers will be barred from other civil law contracts, including an assignment agreement and a contractor agreement.
Why Are These Changes Being Made?
That leads to the subsequent question – why are these changes being made? Several factors drive the Polish government’s decision to overhaul employment rules:
- Combating the Shadow Economy: Civil law contracts may have been used to avoid paying taxes or social security. By requiring legal requirements on employment contracts, the government aims to control employers who evade taxes and ensure that no employer offers unfair terms in the employment market.
- Protecting Workers’ Rights: Employment contracts, as distinguished from civil law contracts of employment, enshrine workers’ advantages such as paid sick days, paid vacations, and pension fund contributions, which provide better social security.
- Leveling the Playing Field: Local and employees from other countries will be offered equal employment standards, thus minimizing unfair competition while opening the doors to fair competition.
Exceptions to the Rule
Certain professions will continue to enjoy flexibility in employment arrangements, including:
- Athletes
- Coaches
- Artists
Additional Read: EU to Boost Job Opportunities for Workers Amid Market Shifts
Implications for Employers
The new regulations pose significant challenges for Polish employers who have relied on civil law contracts for flexibility and cost-saving:
- Increased Labor Costs: The move towards employment contracts will help raise costs for mandatory social contributions.
- Organizational Adjustments: New labor laws require employers to change the ways their employees work and do their tasks.
- Transition Period: A transitional phase will be initiated to help reduce this burden, but more preparation is needed for that.
Preparing for the Changes: Advice for Workers
For foreign nationals planning to work in Poland, preparation is key:
- Understand Employment Contracts: Find out what an open employment contract is and what rights you have under this type of contract.
- Stay Updated: Regulate information about legislative changes and information concerning the period of transition.
- Seek Professional Guidance: Contact the legal or human resources representatives to learn more about the new rules.
Ways in which Dynamic Staffing Services Can Assist
We at DSS agree that managing such political and regulatory changes may be challenging, especially for workers and employers. However, Dynamic Staffing Services is here to assist you in this transition that you require.
For workers, we thoroughly explain where and how they can obtain compliant jobs, how a contract might be worded, and how they can transition to the new employment laws. Employers can also benefit from our guidance on reorganizing employment strategies, documentation management, and compliance issues, considering the current modifications in legislation.
With this understanding and focus on solutions that meet your needs, Dynamic Staffing Services guarantees successful, safe employment in Poland. Contact us today at +91-11-40410000 or email enquiry@dss-hr.com to harness the potential available in the future!
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