Poland PEO Solutions

Global PEO Services (GPS) helps companies hire employees in Poland without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in Poland, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Polish labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Poland. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Country Overview

Overview

Poland is the largest economy in Central Europe, and sixth largest in the European Union (EU). During the last 3 decades, Poland has followed a policy of economic liberalization and was the only country in the EU to remain unaffected by the economic slowdown during 2008 - 2009.

Poland has gained substantially due to integration with global value chains. The government’s push toward responsible development plan, private R&D spending, research quality, and university-industry collaboration has been instrumental in improving Poland’s capacity to innovate and embrace new technologies to develop sustainable industries.

Currency: Polish Zloty

Principal Language: Polish

Government: Semi-presidential Representative Democratic Republic

Capital City: Warsaw

Major Cities: Kraków, Lódz, Wroclaw, Poznan

Employment Contracts

Employers must enter into an employment contract with prospective employees when:

• they are required to understand their job responsibilities
• they performed at the workplace under supervision and during the time specified by an employer
• they receive compensation for their work.

An employment contract is offered to individuals before the commencement of work. In case no written contract is signed, an employer is obliged to provide written confirmation of employment and other employment conditions including remuneration.

Work/Time Regulations

Regular work schedule can’t be more than 8 hours per day and 40 hour per week unless a particular work schedule applies. Such a schedule may include extended daily work hours on particular days that are balanced by time off on other days in a month.

Employees have the right to get a minimum of 11 hours of uninterrupted rest every day, and a minimum of 35 hours of continuous rest every week. Employees who work for a minimum of 6 hours a day are allowed a 15-minute break. An employer can provide another break for a maximum of 1 hour that can’t be included in total work hours.

Overtime
Work performed above the standard work hours is considered overtime, which is capped at 150 hours in every calendar year. A higher overtime limit can be set through work regulations, a collective agreement, or individual employment under certain circumstances.

The average number of weekly work schedule should not exceed 48 hours within any reference or settlement period. This period may last up to 4 months. However, under certain circumstances, the settlement period can be extended up to 12 months, provided proper health and safety measures are in place and the employee representatives have given consent to such extension.

Leave

Holidays

• Jan. 1: New Year's Day
• Jan. 6: Epiphany
• Easter Sunday and Monday
• May 1: Labor Day
• May 3: Constitution Day
• 1st day of Whitsun Holidays
• Corpus Christi
• Aug. 15: St. Mary's Ascension Day
• Nov. 1: All Saints' Day
• Nov. 11: Independence Day
• Dec. 25 and Dec. 26: Christmas

Leave due to Sickness or Injury
If employees are unable to work due to illness, they are entitled to 80% of their regular earnings received during 12 continuous months of service before the disability period began.

Sick pay is covered by the employer for a maximum of 33 days in a calendar year. After this, the State Social Security Office pays for a maximum of 182 continuous days each year. The company covers sick pay for employees aged 50 or more for the first 14 days of sickness in a year. Further payments are made by the Social Security Office.

Maternity Leave
Women employees are entitled to maternity leave for the periods of:

• 20 weeks if 1 child is born
• 31 weeks if 2 children are born
• 33 weeks if 3 children are born
• 35 weeks if 4 children are born, and
• 37 weeks if 5 or more children are born

Maternity leave can begin not before 6 weeks from the expected date of birth. The remaining leave must be taken immediately following the childbirth. An employee is required to take at least 14 weeks of maternity leave before resuming work. Any unused leave more than 14 weeks can be used by the child's father.

Paternity Leave
Fathers caring for a child can get 2 weeks of paternity leave until the child reaches the age of 2. Paternity leave can be taken at the same time that maternity leave is taken, and it is allowed to be taken in 2 installments. Each leave period can’t be less than 1 week. The father is required to furnish request at least a week before the commencement of his leave.

Parental Leave
After using maternity leave, both parents can also take parental leave for a maximum of 32 weeks in case of single birth or 34 weeks in other cases, until the child attains the age of 6. Parental leave can be divided into a maximum of 4 parts and can’t be less than 8 weeks.

Employees need to request this leave at least 21 days before its commencement. They are also entitled to statutory maternity pay for any kind of leave taken. Usually, maternity pay reduces to 60% during parental leave but can be 80% if the employee requests for 52/65/67/69/71 weeks of leave within 14 days of delivery.

Childcare Leave
Employees who have completed a minimum of 6 months of employment are permitted to take up to 3 years of childcare leave (unpaid) until the child reaches the age of 5. An employee is allowed to work for an employer, receive education or training provided it does not hamper the child care. After the leave, the employee can be re-employed in the earlier or a similar position.

Benefits

The current legal retirement age is 65 for men and 60 for women. The new pension system calculates the future pension corpus according to the contributions paid to employees' accounts, labor market’s current situation, and the returns on investment (ROI).

Unemployment Insurance
Unemployment insurance program in Poland provides coverage to individuals who have worked in Poland or European Union (EU) countries for a minimum of 365 days in the previous 18 months. They should have also earned the minimum wage during this period. Employers are required to contribute 2.45% of payroll to this program.

Workers’ Compensation
Employees who suffer a work-related illness or injuries get time off work provided they have a doctor's certificate as a proof of incapacity. Employees are entitled to 100% of their regular remuneration for the initial 33 days of incapacity; for employees who are 50 or above, the duration is 14 days.

How GPS can Help

With our Global PEO/Employer of Record services, companies can expand into Poland and hire their employees without having to establish a branch office or subsidiary in Poland.

Spin Off/M&A Support

• Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.

24/7 Support in 150+ Countries

• Empower your teams with 24/7 support and a single point-of-contact model in which experienced client services directors are in continuous communication with information and advice.
• We are backed by a mix of 300+ multidisciplinary experts from HR, Payroll, Finance, Tax, and Legal domains who are ready to respond to the expected and unexpected needs of your business on the shortest notice.

Easy Visibility into Your Employee Time & Attendance and Benefits Data
With our Global PEO, you get access to Mihi, our proprietary SaaS solution for time and attendance, vacation, leave management and benefits enrollment and management. Mihi enables clients to have easy access to employee data in real time. It is designed specifically for companies with a global workforce, especially when working in multiple countries with low headcount.

Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.