In Poland, there are several types of contracts that an employer can offer to an employee. In accordance with the law, each Agreement must be made in writing, otherwise being null and void. The contract must be signed on the day of commencement of work at the latest.
1. Fixed-term contract with the end date or without end date;
2. Contract of Mandate;
3. Contract to perform a specified task – an employee needs to create something;
UMOW O PRACĘ NA CZAS OKREŚLONY LUB CZAS NIEOKREŚLONY – FIXED-TERM CONTRACT WITH OR WITHOUT END DATE
The employer pays full ZUS (government insurance) plus tax on behalf of an employee. Apart from that, the employer has to:
– send the Employee for medical examinations;
– train the employee in the principles of Occupational Health and Safety;
The labor law specifies the minimum wage, which is increased every year by indexation. In 2021, the minimum rate is PLN 2,800 gross, which is PLN 2,061.67 net.
Under this Agreement, the employee acquires the right to paid leave in the amount of either 21 days or 26 days – depending on the length of professional experience.
If the Agreement is signed for an indefinite period, ie permanently, the employer cannot “easily” fire the employee. The reason for dismissal must be official and will often involve dismissal and violations of the law or work regulations. Therefore, often employment contracts are concluded for a fixed period.
UMOWA ZLECENIE – CONTRACT OF MANDATE
A contract of mandate is a contract for the performance of a service for a specified period of time. It is a very convenient and popular form, often used in service work: restaurants, shops, etc. The rates are usually hourly, but they can also be weekly or monthly – it all depends on the Agreement agreed with the Employer. The law also regulates the lowest hourly rate and it is in 2021 – PLN 18.30 gross, which gives about PLN 12 net.
The employer is not obliged to train the employee on occupational health and safety or to perform medical examinations, unless the workplace requires it in accordance with the applicable law for the specificity of the work performed.
The employer must pay social security contributions and tax for the employee on the salary. If the employee is under the age of 26, the tax is not deducted (but only up to PLN 85,528 per year). If the employee is a student, the employer is not obliged to pay ZUS contributions.
UMOWA O DZIEŁO – CONTRACT TO PERFORM A SPECIFIED TASK
It is a contract that has the performance of a specific thing, a project that is measurable and “visible”. This is a specific type of Agreement that does not include the payment of social security contributions. The employer is obliged to pay tax for the employee. If the Employee transfers the right to the project, the tax may be 50% lower.
The law does not regulate hourly or minimum rates for the performance of this type of Agreement.
B2B – BUSINESS TO BUSINESS CONTRACT
This type of contract has become very popular in Poland, especially in the IT environment where earnings are high.
From a formal point of view, it is not an agreement between the employee and the employer. It is an agreement between business and business. An “employee” must set up a sole proprietorship and on its basis, he issues an invoice for his services to “Employers” every month.
The contractor pays the tax and insurance contributions himself. There is no entitlement to paid vacation or paid sick leave, but many companies agree to pay for vacation.