Employer of Record In Poland

Leverage Marzuna, the EOR (Employer of Record) solution for Poland, to expand your business in the country without the need to establish a local entity. Poland, renowned for its cost-effective labor force, currently holds the title of Europe’s premier outsourcing destination. During the global financial crisis of 2008–2009, it stood out as the sole European nation to emerge unscathed, steering clear of a recession.

Poland’s workforce embodies the essential qualities required for generating highly efficient employees. The population is characterized by ambition, diligence, dedication, a strong willingness to learn, and a robust entrepreneurial spirit. Nonetheless, it is imperative to have a comprehensive understanding of Poland’s stringent employment regulations before embarking on any hiring decisions.

In strict compliance with Polish labor regulations, Marzuna, as the EOR solution for Poland, can seamlessly handle your employment contracts, payroll management, recruitment, advisory services, taxation matters, and all necessary compliances, all while offering a cost-effective solution to facilitate your business expansion.

Overview of Poland

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

Employment Landscape In Poland

Poland’s legal framework encompasses a multitude of provisions that intricately regulate labor relations within the country. This framework draws strength from the Republic of Poland’s Constitution, which upholds the fundamental principles of social and labor rights. Alongside the pivotal Poland Labor Code and other legislative acts and regulations that define the rights and responsibilities of both employees and employers, international agreements pertaining to labor laws also exert influence.

Polish labor law is primarily categorized into two fundamental branches: common law and independent labor law. Common law consists of Acts of Parliament and executive orders, with the Poland Labor Code, which governs the dynamics of employer-employee interactions, occupying a central role. In contrast, independent labor law encompasses social partner agreements that the State formally recognizes as having legal standing.

In January 2021, the Polish government implemented adjustments to the wage system, raising the minimum wage from 2,600 to 2,800 Polish Zloty per month. Employers are obligated to compensate employees for overtime work in addition to their base gross earnings and salaries.

Poland offers employment opportunities to individuals from both European Union (EU) member states and those within the European Economic Area (EEA). However, non-EEA nationals are required to obtain a work permit and entry visa to work in Poland.

To facilitate compliance with Polish labor regulations and ensure the seamless management of HR operations, an Employer of Record (EOR) solution is available. This technology empowers businesses to establish, pay, and oversee a globally distributed HR team while adhering rigorously to the stringent mandates of the Polish Labor Code. Through our unified employment platform, organizations can hire exceptional talent in Poland while maintaining strict regulatory compliance standards.

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 serves as a robust source of highly skilled and innovative talent, particularly in the IT and engineering sectors, facilitating the recruitment of proficient personnel for your workforce.

In the process of hiring employees in Poland, it is imperative for every employer to possess a comprehensive understanding of the country’s labor laws and the dynamics of employment relationships. Employment contracts typically fall into three categories: trial duration, fixed length, and unlimited term. These contracts should include essential details such as the parties involved (employer and employee), the contract’s commencement date, job terms, compensation structure, workplace location, and any other pertinent information as dictated by the nature of the role.

Hence, when assembling a capable team for your specific needs, it is essential to consider these three contract categories. Our global HR platform is equipped to seamlessly manage employee payroll and ensure compliance with ease, offering you a valuable tool to streamline your HR operations.

Recruitment In Poland

In your pursuit of employment opportunities in Poland, you’ll find two key avenues to explore: prominent Polish job platforms with a substantial user base and professional networks like LinkedIn. Traditional Polish newspapers also serve as avenues for job postings, ensuring that you have a variety of channels to explore.

In the era of remote recruitment, many international companies opt for virtual interviews conducted through online communication platforms. This means that you should be mindful of the time difference when scheduling these interviews, ensuring a seamless process.

It’s essential to stay informed about the stringent regulations governing background checks in Poland. Conducting such checks during the recruitment process is strictly prohibited. Our EOR team is well-versed in the intricacies of data protection regulations, employee rights, working conditions, compensation structures, and timetables. We are here to manage the entire process from hiring to the retirement cycle of your employees in Poland, ensuring that every step is handled in compliance with the law.

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

Marzuna, 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, it’s a legal requirement for every employer to have a comprehensive understanding of their employees’ essential information, which includes details like names, date of birth, addresses, phone numbers, educational background, and the bank account to which their earnings will be deposited. The Employer of Record solution is well-versed in the intricate web of legal tax registration prerequisites, including entities such as the National Court Register (KRS), the Central Register, and Information on Economic Activity (CEIDG). CEIDG maintains a comprehensive business register with information on entrepreneurs operating as sole traders in Poland.

In full compliance with the laws and regulations of the host nation, our company guarantees proper and lawful employment practices. Poland stands as a shining example of a nation embracing technology, implementing state-of-the-art digital payment systems. Every business is expected to adhere to Polish tax regulations, encompassing sales tax, direct or withholding tax, and income tax. The realm of payroll in Poland encompasses several categories, including simple payroll, local payroll, external or outsourced payroll, and internal payroll. We offer exceptional services to facilitate the employment and efficient payroll management of highly qualified personnel 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.

When establishing a Limited Liability Company (LLC) in Poland, it’s imperative to have a firm grasp of the tax and compliance framework governing subsidiaries. This multifaceted process requires thorough preparation to ensure a seamless and expedited incorporation. The following documentation is essential:

• Articles of Association.
• Contract or statute, accompanied by a certified translation into Polish.
• Power of attorney for company registration.
• Founders: It’s worth noting that the company can have a single shareholder, and there are no restrictions based on nationality or the total number of founders.
• Capital Contribution: A minimum of 5,000 PLN must be contributed in cash or kind before the business can be registered.
• Management: At least one person must serve on the management board. If the company has over 25 shareholders or the capital exceeds 500,000 PLN, a supervisory board comprising a minimum of three individuals is mandatory.
• The LLC is issued a REGON number and a tax identification number.
• Registration for Value Added Tax (VAT) purposes is also a mandatory step.

Marzuna is well-equipped to simplify the process of creating an LLC for commencing your business operations and to streamline direct staff recruitment in Poland. Maintaining strict adherence to Poland’s tax system is a key consideration. LLCs are subject to a flat tax rate of 19% on all domestically earned income, and businesses are obligated to follow annual reporting and audit standards. Our team of professionals is poised to assist you in managing your company’s compliance, ensuring that your activities remain fully aligned with Polish regulations.