Labor Law in Poland

Labor Law in Poland

Definition of Employment Relationship According to Polish Labor Law

Art. 22 § 1 of the Labor Code
By establishing an employment relationship in Poland, the employee commits to performing work of a specified nature for the employer under their direction and at the place and time designated by the employer, while the employer agrees to employ the worker for remuneration (employment contract in Poland).

Characteristics of the Polish Employment Contract

1. The principle of subordination,
2. Performance under supervision,
3. Obligation to follow instructions regarding the place, time, and method of work,
4. Certain stability and continuity of work,
5. Obligation of personal performance,
6. Absolute principle of remuneration,
7. The intended outcome is feasible and likely, often unpredictable,
8. Economic risk on the employer’s side.

Employment in Poland under the above conditions constitutes employment based on an employment relationship (employment contract), regardless of the title of the agreement made by the parties. It is not permissible to replace an employment contract with a civil law contract (e.g., a cooperation agreement, mandate contract, or contract for specific work) while retaining these conditions.

Guideline: In each case, it is worth considering whether a given contract meets the characteristics of an employment relationship under Polish law. The title of the contract does not matter if the legal relationship displays the features specified in Art. 22 § 1 of the Labor Code (Polish Supreme Court judgment – Administrative, Labor, and Social Insurance Chamber of April 7, 1999, case no. I PKN 642/98).

Mandate Contract vs. Employment Contract under Polish Labor Law – Comparison and Differences
Both are agreements of diligent action but differ in the following aspects:

• Lack of subordination of the contractor,
• No supervised performance,
• Possibility of gratuitous performance,
• Relates to specific tasks,
• Lack of stability and continuity,
• Possibility of using a subcontractor.

What to Know

What if the Polish employer did not confirm the contract in writing?

According to Art. 29 § 2 of the Labor Code, an employment contract in Poland must be concluded in writing. If it has not been made in writing, the employer should confirm in writing the terms and parties of the agreement before allowing the employee to start work.

Failure to provide a written employment contract is an offense for which the employer may be penalized under Polish labor law, yet an oral contract remains valid and binding, including changes to the contract.

Can an employment contract and a mandate contract be concluded for the same scope of duties in Poland?

No.

If contracts in Poland cover the same subject, they effectively constitute an extension of the employment contract. The employee is entitled to overtime pay and night work pay under the Labor Code.

Jurisprudence: The Polish Supreme Court has ruled that a mandate contract for duties identical to those in the employment contract is its extension, not a separate mandate contract (Supreme Court resolution of April 12, 1994, case no. I PZP 13/94 and judgment of March 13, 1997, case no. I PKN 43/97).

Overtime Pay for Managers and Executives in Poland

Do managers or executives in Poland have the right to overtime pay?

Yes!

It is worth considering mediation proceedings.

Case Law: According to Polish labor law, individuals in managerial positions are entitled to compensation for overtime if it is due to poor work organization (Supreme Court judgment, February 20, 2020, case no: I PK 247/18). Managerial work without additional overtime pay is permissible only in exceptional, sporadic situations (Supreme Court judgment, June 22, 2016, case no: III PK 118/15).

Case Law: As established by case law, including the Polish Supreme Court’s judgment of February 20, 2020 (case no: I PK 247/18), “it is not permissible to implement organizational solutions that inherently require consistent overtime work in Poland. Thus, managerial employees in Poland cannot be deprived of the right to overtime pay if poor work organization necessitates consistent working hours exceeding regular work hours.”

Another Supreme Court judgment of June 8, 2004 (case no: III PK 22/04) states that “individuals in managerial positions cannot be deprived of the right to additional compensation for overtime if they are forced to regularly exceed standard working hours due to flawed work organization.”

Case Law: “Individuals managing the employer’s workplace and heads of separate organizational units have the right to compensation for overtime if they perform this work continuously and due to poor time management by the employer” (Supreme Court judgment, November 7, 2017, case no: I PK 302/16).

Case Law: “Overtime work in Poland without additional compensation is possible only in exceptional, occasional, and sporadic cases. If work is performed consistently beyond the statutory work hours for individuals in managerial positions (who are also subject to general statutory work norms), Article 151 § 1 of the Labor Code does not apply” (Supreme Court judgment, June 22, 2016, case no: III PK 118/15).

Case Law: “If the excess work time results from flawed work organization independent of managers, it does not prevent them from claiming compensation for overtime” (Court of Appeal in Katowice, February 13, 2014, case no: III APa 63/13, LEX no. 1437945).

What to Do in Case of Contract Termination?

Contact a Polish lawyer specializing in labor law.

You have 21 days to appeal to the Polish labor court.

Under Polish labor regulations, an employment contract can be terminated:

• By mutual agreement,

• By declaration with a notice period,

• By declaration without a notice period,

• Upon the expiry of the agreed term.

Any termination or dissolution of an employment contract in Poland must be in writing and include the reason and instruction on the right to appeal to the labor court. If the termination of a fixed-term or indefinite-term employment contract is found to be unjustified or in violation of employment contract termination regulations, the labor court – at the employee’s request – shall rule on the ineffectiveness of the termination, or if the contract has already been terminated, it will order the employee’s reinstatement to their previous position or award compensation.

Case Law: The labor court may rule on the ineffectiveness of the termination or the employee’s reinstatement if the termination was unjustified or violated regulations (Polish Supreme Court judgment, May 9, 2006, case no: II PKN 270/05).

What to do if the contract termination was issued by an unauthorized person?

1. Contact a Polish lawyer specializing in labor law.
2. You have 21 days to appeal to the Polish labor court.
3. Case Law: According to Polish case law (e.g., Polish Supreme Court judgment, May 9, 2006, case no: II PKN 270/05), termination of an employment contract may also result from a statement made by an unauthorized representative if the employer subsequently confirms the termination. In such cases, the court may, at the employee’s request, declare the termination invalid.

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