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POLAND: Annual Update – Expected Labour Law Changes in 2017

By - - Employment Law

Work History Certificates

Reduced obligation to provide work history certificates:  Currently, employees hired on fixed-term and probation contracts must receive a work history certificate once every 24 months from their employer.

The government is planning to change this so that certificates will only need to be given on termination. The exception is where a fixed term contract ends, and a new contract is entered into within 7 days of the end date. No certificate would need to be provided in such a case.

The change is expected to take place at some point in 2017; the specific date is presently unknown.

Action required:  None at present, but keep abreast of the current legal situation.

Employer Property

Written agreements required:  Employees entrusted with company property can be required to enter into agreements confirming their responsibility over the property.

The government is proposing to implement a rule, which will make the agreement invalid unless it is in writing and signed by both employer and employee. It is not clear when the change will be introduced, although it is expected to take effect in 2017.

Action required:  None at present, but keep abreast of the current legal situation.

Social benefit fund and work regulations

Relaxation of employer requirements:  Employers with at least 20 employees must create a Company Social Benefits Fund and implement Remuneration and Work Regulations.

The government proposes to increase the threshold from 20 to 50 employees. Implementation will be optional for companies with between 20 to 49 employees.

It is not clear when the change will be introduced, although it is expected to take effect in 2017.

Action required: None if you already have a Social Benefit Fund and Work Regulations in place but keep abreast of the current legal situation.

Minimum wage

New minimum wage:  From January 1, 2017, employees hired on ‘contracts of mandate’ must be paid PLN 13 per hour. The new rate will be indexed to the rate applicable to ordinary employment contracts. A ‘contract of mandate’ is an agreement to perform specified activities or project work within a certain time frame. Currently, the ‘mandatory’ (worker) is not entitled to a minimum wage.

Action required:

(1) Review current payroll policies and procedures to ensure they are compliant.

(2) Identify personnel working under contracts of mandate so payroll can apply new rate.
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