PolandFind out what you need to know about employment laws, regulations, and Employer of Record (EOR) in Poland.
Looking to hire in Poland? An EOR can assist
If your business is expanding into Poland or growing your workforce within the country, using an Employer of Record (EOR) service can simplify the complexities of hiring, onboarding, and compliance — all without you having to establish a legal entity in Poland.
An EOR will serve as the official employer for your workforce =. They will oversee local recruitment efforts, manage payroll, handle staff benefits, and ensure compliance with tax regulations. This frees you up to focus on what really matters.
How to hire in Poland
Step 1: Choose between setting up a local entity and using an EOR
When hiring in Poland, you have these two options: Establishing a local business entity or utilizing an Employer of Record (EOR) service.
Setting up a local entity gives you full control over your HR function, but it demands considerable time, financial investment, and effort. The process includes registering with Polish authorities, appointing directors, and adhering to intricate tax regulations; this can span several weeks or even months, potentially impacting your hiring schedule.
Moreover, setting up a local entity means you’ll need to directly manage compliance with all Polish employment laws and regulations.
Using an EOR service allows you to avoid the complexities of dealing with Polish labor laws. You can offload and automate critical HR functions, such as onboarding employees, running payroll, and provide locally relevant benefits while retaining control over key operations.
If you intend to hire a large workforce and establish a significant presence in Poland, setting up a local entity might be beneficial. However, for a more efficient and streamlined hiring process, an EOR offers a faster and less cumbersome solution.
Step 2: Finding the best EOR solution
Selecting the right Employer of Record (EOR) is essential as the wrong choice can result in compliance issues, unexpected expenses, and a subpar experience for your new employees. You need to consider
- Legal compliance. Verify that the EOR has a strong understanding of Polish labor laws, employee rights, tax requirements, and local benefits. Look into their track record and ask about their experience with industry-specific scenarios.
- Customer service. Check whether the EOR offers ongoing support to their clients. For example, Multiplier offers continuous personalized support and dedicated managers for each account, rather than relying on automated systems.
- Transparent pricing. Be cautious of EOR services that advertise low initial fees but have hidden charges or complicated pricing structures. Ensure you have a clear understanding of all potential costs from the beginning.
- Total cost of ownership. Opting for the least expensive option is not always the best strategy. Cheaper solutions can sometimes end up being more costly if they are ineffective. When selecting an EOR, make sure you invest in a high-quality service that meets your budget while providing the necessary features.
Step 3: Employing and onboarding in Poland
Send over the contract
After selecting the ideal candidate and the right EOR, the next step is to issue an employment contract that complies with Polish regulations. Services such as Multiplier can swiftly prepare these contracts in accordance with Polish law. The contract can be customized to detail job responsibilities, working hours, salary, and termination conditions.
Once the contract is prepared, the EOR will securely send it to the candidate and ensure that all necessary signatures are obtained.
Enhance compensation with competitive benefits
To create an attractive benefits package, collaborate with an EOR. Instead of navigating conversations with local vendors yourself, you can access a range of locally administered benefits options. EORs also ensure that employees receive the necessary IT equipment to start their roles effectively.
Get all your documentation in order
Collecting the new hire’s tax and banking information is essential. If you’re working with an EOR like Multiplier, this data will be gathered automatically for payroll setup. We will manage all required documentation, making the process smoother and reducing paperwork.
Onboarding employees in Poland might seem challenging at first, but with the assistance of an EOR, the process can be streamlined and efficient.
Step 4: Run payroll for employees based in Poland
Managing payroll for employees in Poland requires compliance with local tax regulations. Poland’s tax system is progressive, with rates ranging from 12% to 32%, depending on income levels.
Employers are also responsible for several compulsory contributions, such as social insurance premiums and health insurance.
The ZUS (Zakład Ubezpieczeń Społecznych) provides Poland’s primary social security benefits, including retirement pensions, healthcare coverage, and disability benefits. Employers must contribute a specified percentage of each employee’s salary to the ZUS to ensure they receive these essential benefits.
Health insurance offers coverage for medical services and is another mandatory contribution employers must manage. Employers contribute to this fund, which provides employees with necessary healthcare services.
Utilizing an EOR like Multiplier can simplify payroll management; you can ensure that salaries and taxes are paid accurately. With Multiplier’s global payroll solution, you can can view all key details in a single platform, avoiding the challenges of coordinating with multiple local providers.
Employ top talent in Poland through an EOR
Onboard, pay, and manage all your international employees
Employment laws and regulations in Poland
Poland’s employment laws are designed to safeguard employee rights and ensure a fair working environment. The international law (ILO) conventions, EU provisions, and Poland’s own labor laws regulate employment relationships in the country. Key aspects include:
- Employment contracts. In Poland, employers can offer trial contracts as well as definite-term and indefinite-term contracts. Although written contracts are not mandatory, they are highly recommended to avoid legal disputes. These contracts should clearly specify job duties, salary, working hours, and conditions for termination.
- Working hours and overtime pay. The standard workweek in Poland is 40 hours, with overtime pay required for any hours worked beyond this limit. Employees are entitled to a minimum of 15 minutes of rest for every 6 hours worked continuously.
- Social security contributions. Employers must contribute to ZUS (Zakład Ubezpieczeń Społecznych), which provides social security benefits including retirement pensions and health coverage. Both employers and employees contribute a percentage of monthly salaries to ZUS.
Employee benefits and compensation
Poland’s minimum wage is set annually and applies nationwide. Currently, it is approximately PLN 4,600 per month. The rate is adjusted periodically to account for changes in living costs and economic conditions.
Polish labor laws also mandate several standard employee benefits, including:
- Annual leave. Employees are entitled to a minimum of 20 days of paid annual leave after completing one year of service. This entitlement increases with longer tenure and depends on education status.
- Sick leave. Employees under 50 can receive up to 33 days of paid sick leave per year or up to 14 days if they are 50 or older. For absences over this period, employers must provide a medical certificate, and compensation may be covered by the Social Insurance Institution (ZUS)
- Parental leave. Poland provides 20 weeks of paid maternity leave, covered by ZUS, with additional unpaid leave options available. Fathers are entitled to two weeks of paid paternity leave, and there are provisions for unpaid parental leave as well.
Many employers enhance these statutory benefits with additional perks to attract and retain talented employees. For localized, competitive benefits solutions, consider Multiplier’s Global Benefits Administration.
Termination and offboarding procedures
When terminating employment in Poland, employers must comply with regulations concerning notice periods and severance pay. The standard notice period ranges from 2 weeks (14 days) to 3 months, depending on the duration of the employee’s service and the terms outlined in the employment contract.
Polish law mandates severance pay, which is typically one month’s salary for each year of service, with the exact amount determined by the employee’s contract or statutory provisions. However, it is important to note that there is a cap on severance pay: it cannot exceed 15 times the minimum wage applicable at the time of termination
Special procedures apply in cases of businesses going through downsizing or economic difficulties. Employers may offer notice pay in lieu of the notice period, but this must be explicitly mentioned in the employment contract.
Navigating these procedures can be intricate and time-consuming, especially for international employers unfamiliar with Poland’s labor laws.
An EOR, such as Multiplier, can significantly simplify this process. By managing the offboarding procedures, an EOR ensures adherence to local regulations and facilitates a smooth transition for both the employer and the departing employee.
Visa and work permit assistance
Hiring foreign employees in Poland involves securing the necessary visas and work permits. The specific type of visa required will vary based on factors such as the job role, length of employment, and the employee’s nationality. Here are the main categories:
- Blue Card: For highly skilled individuals in professions such as engineering, technology, and research. The EU Blue Card is the main visa category for highly skilled non-EU citizens in Poland.
- Work Permit Type A: For employees who are hired by a company based in Poland whose work will be performed within the country.
- Intra-Company Transfer Permit: For employees transferred from a foreign branch of a multinational company to a Polish branch.
- Student Work Permit: For students studying in Poland to work part-time while pursuing their education.
- Professional Work Permit: For foreign professionals who have recognized qualifications in specialized fields such as law, medicine, and accounting.
- Seasonal Work Permit: For workers in industries such as agriculture, manufacturing, and construction, typically involving lower-skilled positions.
Given the intricacies of visa applications and renewals, it is advisable to seek expert assistance. Multiplier provides comprehensive support for work permits and visa management as part of its Employer of Record (EOR) services.
Visit our Global Immigration page for more information on how we handle global immigration requirements.
Get started with Multiplier’s EOR services
Multiplier’s Employer of Record (EOR) services offer an effective solution for expanding your workforce in Poland. By collaborating with Multiplier, you can hire employees without the need to establish a local entity, streamline HR processes, and improve the overall employee experience.
Our EOR services handle all aspects of employment with ease. From crafting contracts that comply with Polish legal standards to managing payroll and taxes, we take care of every detail. We also provide a range of customizable benefits that align with local requirements, alleviating the complexities and administrative work on your end.
Multiplier can simplify your HR functions and ensure regulatory compliance in Poland. Book a demo today.
