Understanding Employment Law: Key Considerations for Employers and Employees

With the increasing trend of immigration, it's crucial to grasp the local laws of the country you're moving to. People relocate for various reasons, often economic, in search of better job opportunities and higher wages. Therefore, when you transition to a new country, it's not just about understanding immigration and visas, but also about having a basic understanding of employment law.

Understanding employment law in a new country is a vital tool for both employees and employers. This knowledge is instrumental in safeguarding your rights, mitigating risks, and most importantly, preventing conflicts.  For instance, employees who are aware of their rights can ensure they are not being taken advantage of, thereby averting potential disputes. Similarly, for employers, adherence to regulations like minimum wage and working hours can forestall legal issues. This information is typically found in a country's Labor Code, which most countries have.

In this article, we will discuss the key considerations of employment law for both employers and employees. We will examine Poland's legal framework, including the Constitution, Labor Code, collective labor agreements, and EU directives and regulations, as well as the rights and responsibilities of employers and employees.

Introduction to Employment Law in Poland

Constitution of the Republic of Poland 

The Constitution of the Republic of Poland, enacted on April 2, 1997, is the cornerstone of Polish law. This influential document not only outlines the country’s legal and political structure but also serves as a robust defender of the rights and freedoms of its citizens. It establishes the fundamental principles and rights that underpin all laws, including employment law, instilling a deep sense of security and trust in the populace.

Labor Code (Kodeks pracy)        

The Labor Code of Poland (Kodeks pracy) is a pivotal document that governs employment relationships in the country. It covers crucial aspects such as employment contracts, standard working time, employee rights, remuneration, health and safety, and mandatory leaves in Poland. A comprehensive understanding of these elements is not only essential but also the key to compliance with Polish employment law, enhancing your preparedness and knowledge.

Collective labor agreements  

A collective labor agreement, or collective bargaining agreement (CBA), is a formal legal document between employers and trade unions. Its primary function is to refine and enhance the standards outlined in the Labor Code, thereby better addressing the specific needs of both employees and employers.    

EU directives and regulations

Since Poland is a member of the European Union (EU), various EU directives and regulations are implemented into Polish law. They cover a wide range of topics, including employment law. Understanding these directives and regulations is crucial for employers and employees in Poland to ensure compliance with EU standards. 

Employment Law-related directives

Working Time Directive (2003/88/EC) limits working hours, rest periods, and annual leave.2.     

Equal Treatment Directive (2006/54/EC) promotes equal treatment for men and women in matters of employment and occupation.

Temporary Agency Work Directive (2008/104/EC) establishes equal treatment for temporary agency workers regarding working conditions.

Information and Consultation Directive (2002/14/EC) requires employers to inform and consult employees on significant workplace matters.

Parental Leave Directive (2010/18/EU) provides rights to parental leave and related employment protections.

Employment Law-related regulations

General Data Protection Regulation (GDPR) (2016/679) governs data protection and privacy.2.        

Regulation on the Coordination of Social Security Systems (883/2004) ensures the protection of workers and their rights moving within the EU.

Rights and Responsibilities of Employers in Poland

Hiring practices

Employers must comply with non-discrimination laws, making sure that there is no discrimination based on gender, age, race, religion, disability, sexual orientation, political beliefs, nationality, or employment type. Employers must follow fair recruitment procedures, providing equal treatment to all candidates during the hiring process.

Working time regulations

Employers must comply with regulations on working hours, ensuring that does not work more than 48 hours per week on average (including overtime). Employers must provide employees with adequate breaks and rest periods, including at least 11 consecutive hours of daily rest and at least 24 hours of uninterrupted weekly rest every seven days. Employers must also ensure that employees are given a break if they work more than 6 hours daily.

Wages and benefits

Employers must pay at least the minimum wage set by Polish law and provide some mandatory employee benefits, including health insurance, paid annual, sick, and parental leave.

Rights and Responsibilities of Employees in Poland

Anti-discrimination and equal treatment   

Employees are protected against discrimination based on gender, age, race, religion, disability, sexual orientation, political beliefs, nationality, or employment type. Employees have the right to receive equal pay for equal work.

Working conditions 

According to health and safety standards, employers must maintain a safe and healthy working environment to prevent workplace injuries and illnesses.

Polish law offers substantial protection for employees against unjust dismissal, and employers must follow legal procedures for terminating employment. 

Leave entitlements

Polish employees are granted 20 – 26 days of paid annual leave, depending on their length of service. They have the right to up to 33 days of paid sick leave, after which the Social Security Insurance (Zaklad Ubezpieczen Spolecznych, or ZUS) takes payments.

Employees in Poland are entitled to various types of parental leave:

Maternity leave – 20 weeks with 100% salary compensation.

Thirty-two weeks of parental leave, compensated at 60% of their salary.

Two weeks of paternity leave for fathers, paid 100%.

Thirty-six months of unpaid childcare leave.

Compliance and Enforcement in Poland

Labor Inspectorate (Inspekcja Pracy)

The Labor Inspectorate is responsible for ensuring that employers comply with labor laws and regulations. This includes checking working conditions, health and safety standards, and employee rights. It has the authority to issue fines and pursue legal action against employers who violate regulations. 

Employment tribunals and courts

Employees who think their rights have been violated can file complaints with the Labor. The Inspectorate needs to investigate these complaints first and then act if necessary. In case of unfair dismissal, discrimination, and unpaid wages, employees can bring their cases to employment tribunals. Employees can escalate their cases to higher courts if a resolution is not reached at the tribunal level. 

Emerging Trends and Challenges in Poland

Impact of digitalization and remote work

The impact of digitalization and remote work in Poland is introducing new challenges and trends. The shift towards remote work and the gig economy necessitates ongoing updates to the country's legal framework. With the increasing prevalence of remote work, employers and employees must adhere to new legal requirements related to contracts, working hours, and workplace safety. Employers must also ensure compliance with labor laws to accommodate flexible work conditions.           

Remote work has increased concerns about data protection and privacy. Employers must follow GDPR and train employees on how to protect personal data when working remotely.

Growing gig economy and freelance work

In addition, Poland is witnessing significant changes in its labor market due to the rising gig economy and freelance work driven by digital platforms like Uber and Bolt. Younger generations are favoring gig work for its improved work-life balance.

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The Polish government is developing laws to regulate gig work better and protect workers' rights to address these changes. These efforts include reforms to labor laws and tax policies to establish standardized definitions and classifications for a fair labor market.  

Best Practices for Compliance in Poland

Regular training and education: Provide continuous training and education on labor law for all employees and management.

Documentation and record-keeping: Keep detailed and accurate records of all employment-related practices.

Consultation with legal experts: Regularly consult legal professionals to stay informed about compliance requirements.

Proactive approach: Address labor law concerns proactively to avoid potential legal issues.

Regular audits: conduct regular audits to ensure all practices and policies comply with labor laws.

Updating policies: Regularly update company policies and procedures according to labor laws and regulation changes.

Final Thoughts      

Understanding employment law is not just a legal requirement but also a strategic advantage for employers and employees in Poland. A comprehensive knowledge of the Constitution, Labor Code, collective bargaining agreements, and EU directives can help both parties operate within the boundaries of labor law. Employers who adhere to these regulations can avoid legal issues and foster a harmonious work environment. At the same time, employees aware of their rights can shield themselves from unjust practices.               

As the labor market in Poland evolves due to trends like digitalization, remote work, and the gig economy, staying updated on legal changes is crucial. Adapting best practices such as continuous training and consulting with legal experts will help employers and employees stay compliant and feel prepared and proactive in supporting a stable work environment.