Complete Guide to Hiring Employees in Poland

Situated in Central Europe, Poland is an attractive location for foreign businesses to establish themselves. The country has the sixth-largest economy in the European Union, making it a premium location for enterprises from all over. Furthermore, it has the fifth-largest GDP in the European Union. Additionally, Poland ranks high in the Ease-of-Doing-Business scale, occupying 40 among 190 economies worldwide. 

Companies setting up a business in Poland can gain from its skilled and highly-educated workforce. As of 2021, the literacy rate of Poland reached 99.80% offering hardworking employees to companies. Companies need to comply with Polish labor law to hire employees in Poland. 

Learn how to hire employees in Poland from this guide.

Things to Know Before Hiring in Poland

Here are some essential aspects to know before hiring in Poland: 

Employment contract

In Poland, it is mandatory by law to have a written employment contract. The Polish government allows the adoption of foreign law to the employment relationship. However, Polish laws are still applicable even in such instances, especially if foreign law is less beneficial to the employees. Here is a list of essential information to include in an employment contract:

1. 1. Identification of employer and employee
   2. Date of commencement of work
   3. Type of contract (either indefinite, fixed term, or probation)
   4. Duration of work (in case of temporary contracts)
   5. Date of conclusion
   6. Workplace
   7. Work type
   8. Base salary
   9. Other benefits and compensation
   10. Working hours
   11. Annual leave

Probation period

In Poland, probation cannot last more than three months. 

Working hours

According to Polish law, the working hours in Poland are limited to 40 hours per week, which translates to 8 hours per day. 

Overtime

As per Polish labor laws, employees can have maximum overtime of 150 hours each calendar year. Furthermore, with overtime, working hours should not be more than 48 hours per week. Any work done beyond the standard working hour is usually considered overtime. The overtime compensation is as follows: 

Minimum wage

The minimum wage in Poland is 3,490 PLN per month (as of January 2023).

Sick pay

The sick pay in Poland is 80% of the usual wage. This is covered by the employer or the Polish social security scheme, depending on the situation. 

In case of absence from work for 33 days or less, the employer must cover the sick pay. However, for employees aged 50 or above, the sick pay is limited to 14 days.

In the case of absence from work due to sickness or injuries between 33 to 182 days, sick pay is covered by the Polish social security scheme. 

Tax

A vital part of the hiring process in Poland is understanding the Polish tax structure. Both employers and employees should pay taxes in the following manner:

Social security

Similar to taxes, both employers and employees are required to pay the Polish social security scheme in the following ways: 

Annual leave

The number of annual leaves in Poland depend on the employment history of the employees, and can be categorized as follows: 

20 days of paid annual leave for employees employed for ten years, including any past employment record.  

26 days of paid annual leave for employees who have been employed for over ten years. 

Maternity leave 

Maternity leave lasts for 20 weeks. Female employees can take their leave six weeks before the expected due date.

In case of multiple births, the leave can be extended up to 37 weeks. For 26 weeks, the employee receives maternity benefits equivalent to 100% of her wage. After 26 weeks, the benefits are reduced to 60% of her wage. 

Paternity leave

• Polish law mandates 14 days of paternity leave during the first year of the child’s birth. The security scheme covers the concerned employee’s pay during this time. 
• After the first 14 weeks, the mother can transfer the rest of her maternity leave (6 weeks) to the father if the parents are employed at the same office. 

Parental leave

• Apart from maternity and paternity leaves, the Polish government also allows parental leaves that provide parents with adequate time to care for their children. Parental leaves in Poland can be taken a right after maternity leave and have the following duration and compensation: 
• Both parents can share a maximum parental leave of 32 weeks.
• During these 32 weeks, the concerned parent will get 60% or 80% of their standard wage, depending on the rules and regulations applied during their maternity leave.
• Parents who have been in service for over six months are also entitled to 36 months of unpaid leave in case they have a child or children below the age of six.

National holidays

In total, there are 11 public holidays in Poland which are listed below:

Employment termination

Apart from fixed-term contracts, employment termination in Poland can be due to a mutual agreement or resignation. Additionally, as per Polish laws, the following reasons can be used by employers to dismiss an employee:

• Long-term illness
• Gross negligence or misconduct
• Criminal offense
• Loss of any qualification related to the job

There is no need for prior notice for dismissing any candidate based on one of the above reasons. However, the following causes of dismissal need prior notice:

• Prolonged underperformance
• Business-related issues
• Collective redundancies
• Notice period: The notice period in Poland depends on the length of employment. 

Severance pay

Severance pay could be for one month to 3 months’ wage. 

The Cost of Hiring an Employee in Poland

Companies must set aside a dedicated budget to ensure the selection and recruitment in Poland go smoothly. Here are the main costs related to hiring employees in Poland:

• Incorporating your business in Poland
• Overhead expenditures to establish a physical employment location in the country
• Hiring agency or Human Resources fee
• Traveling to Poland to meet employees and set up your enterprise
• Hiring a legal expert to get help in navigating Polish laws, norms, and regulations
• Hiring a translator for ease of conducting business

What Does a Company Need to Hire Employees in Poland?

A company requires a few mandatory things to hire employees in Poland:

1. Articles of association executed through an attorney
2. A Polish bank account
3. Payment of required share capital
4. Registration under the National Court Register
5. A management board
6. Registered under the commercial register

Once these steps are executed, companies might have to apply for licenses or permits, depending on their work. Once these tasks are done, companies can start the hiring process in Poland. 

Various Options For Hiring Employees in Poland

Primarily, there are two ways available to hire employees in Poland, which are as follows:

• Through a Polish subsidiary: Companies can conduct the hiring process by establishing a Polish subsidiary. They must submit various legal documents, get the appropriate registrations, open a Polish bank account, set up an entire HR team, etc. Hence, this is often considered to be a time-consuming method.
• Through an EOR: An Employer of Record (EOR) can be hired by companies to hire employees in Poland, per the local norms and regulations. This process is much more efficient and saves time, money, and resources. 

The Steps to Hiring in Poland

Below are the steps involved in the process of recruitment and selection in Poland:

• Step 1: Job advertisements are posted by companies looking to hire individuals. These advertisements can be on online job boards or even in newspapers.
• Step 2: Companies review all the submitted CVs and shortlist the most suitable ones. A brief telephone interview is scheduled with the shortlisted candidate following this screening. 
• Step 3: Subsequently, the shortlisted candidates are called for face-to-face or online interviews. These are usually organized and will be taken by a panel to understand the skills and experiences of the applicants better.
• Step 4: Some companies may choose to take a second round of interviews with those selected in the first round. This is also the time to check the applicants’ references.
• Step 5: Finally, the company decides and offers job positions to the most deserving candidates. 

Let Multiplier be Your EOR Platform in Poland

Hiring in foreign nations should be guided by a strong understanding of the rules governing that nation. Hence, companies opt for an EOR to help them hire employees per the concerned country’s legal requirements.

Therefore, if you want to hire people in Poland, you can trust Multiplier to do the job for you. With our years of experience, robust infrastructure, well-rounded management, and optimized use of technology, we ensure that hiring in any foreign country feels smooth. Furthermore, we offer payroll services, getting work permits, and so on, which can only simplify your recruitment and selection in Poland even more.