Employment laws in Poland

Poland’s labor market has been growing at a remarkable pace in the last decade. With its flourishing private sector and employers planning to scale their operations in Central Europe, Poland offers a vast and skilled workforce. 

The country has seen a sharp decline in unemployment. By 2023, Poland’s unemployment rate

However, understanding employment laws in Poland is essential to building long-term, compliant working relationships with both full-time employees and contractors.

In this guide, we will explore the essentials of labor law and employment in Poland, including contract types, working hours, statutory benefits, termination rules, and labor union practices.

Key employment laws in Poland

Here are some important elements covered by the employment laws in Poland that employers need to be aware of:

• Employment contracts, working hours, leave, and termination rules
• Union labor laws and practices in Poland​ 
• Minimum wage in consultation with the government and social partners 
• Payments and benefits managed through ZUS

Contract employment laws

Labor laws in Poland require that all employment relationships be formalized by a written contract. The contract must be provided on or before the employee’s first day of work to comply. Before we delve into the formalities, let’s understand the types of contracts. 

Types of contract

Poland’s employment laws outline three types of contracts:

• Contract for a Trial Period: This type of contract is used to assess an employee’s qualifications before offering long-term employment. Its typical duration is up to 1 month for contracts under 6 months and up to 2 months for contracts between 6 and 12 months.

• Fixed-Term Contract: This type of contract specifies the start and end date of the employment relationship. It is capped at 33 months total with a maximum of three contracts.

• Indefinite-Term Contract: These contracts have no predefined end date as employment continues until terminated. It offers the highest level of job stability under employment laws in Poland.

Essential contract terms

Employment laws require written contracts, and as an employer, you must outline the type of contract and crucial terms and conditions before both parties sign it. All contracts must include the following information:

• Details of both parties (employee and employer)
• Employer’s registered or residential address (for individuals)
• Type of employment contract (trial, fixed-term, or indefinite)
• Date the contract was signed
• Working conditions and pay terms, including:
  • Job type (role, responsibilities, or position)
  • Work location(s)
  • Salary with breakdown of components
  • Working hours (e.g., full-time or part-time)
  • Start date of employment

Terms for trial period contracts:

• Contract duration or end date
• An optional clause to extend the contract during leave
• Duration of fixed-term contract when the trial period is under three months
• Justified extension (not more than one month) based on the nature of the job

Terms for fixed-term or part-time contracts:

• Contract period or end date
• Required details on employment term and working hours

Minimum wage in Poland

In Poland, the labor laws define the minimum wage as 4,806 PLN as of January 1, 2026. Regardless of the sector, industry, qualifications, or profile, all employees are entitled to this amount in remuneration. 

Working hours in Poland

The standard working hours in Poland are set at 8 hours a day and 5 days a week, or 40 hours per week. You need to plan how many hours for employees in compliance with the labor laws in Poland. 

If employees are working overtime, or beyond the lawful working hours, they are entitled to overtime compensation or free hours as per the following guidelines.

• 100% overtime allowance for employees at night, on Sundays, and other public holidays that are not workdays specified in the contract. Also, this applies to employees working over 40 hours a week.

• A 50% overtime allowance is provided for employees who work overtime on regular workdays, rest days, or compensatory days off. If overtime exceeds daily and weekly limits, only one overtime allowance is granted, not both.

• In the case of free time requested by employees, they may receive time off equal to the number of overtime hours worked. This time off can be taken even outside the reference period in which the overtime occurred.

• An employer can grant free time without a written request, but it must be 1.5 times the extra hours they are compensating for. However, this leave cannot be used after the reference period ends.

• Employees who regularly work outside the employer’s premises are entitled to both standard and additional overtime compensation as a lump sum payment. 

Mandatory benefits

As per labor laws in Poland, all employees in Poland are entitled to the following mandatory benefits. The employment contracts must list these benefits. 

• Pension: The Employee Capital Plan (PPK) was introduced to encourage long-term savings. Employees aged 18–70 are automatically enrolled in pension schemes unless they submit a physical opt-out form. 

• Insurance: Similar to other EU nations, employers must provide mandatory insurance coverage that includes health insurance (National Health Fund / NFZ) and social security (Ubezpieczenie Społeczne) that covers healthcare, pensions, family support, and unemployment. It may even include other optional benefits, such as private health insurance, life insurance, and business travel coverage.

• Annual leave: Employees are entitled to 20 days of annual leave if employed for less than 10 years, and 26 days for 10 years or more.

• Training leave: Employees are granted up to 6 days of leave for extramural exams, matriculation exams, or other professional qualification exams, and 21 days for the diploma exam & dissertation.

• Sick leave: All employees are entitled to paid sick leave for up to 33 days per year at 80% pay, the remainder covered by the ZUS. In case of Tuberculosis or Pregnancy, it can be extended up to 180 days or 270 days.

Termination

An employment contract can be ended in several ways, such as mutual agreement between the employer and employee, notice served by either party, or without notice in specific cases. Termination may also be due to reasons not directly related to the employee’s performance/ conduct.

Navigate employment laws in Poland with trusted support

Poland’s employment laws are built on detailed Labor Code regulations, social insurance rules, and EU-driven protections. Managing contracts, social contributions, and staying compliant can be challenging sometimes.

Payoneer Workforce Management can help you streamline onboarding, local payroll, employment contracts, benefits, and more, without setting up a local entity.

Book a free demo today.

FAQs

1. What types of employment contracts are common in Poland?

In Poland, the most common contracts are for an indefinite period, fixed-term, and trial-period contracts. Each has specific rules around duration, notice periods, and termination. Fixed-term contracts are limited in number and duration, while indefinite contracts offer stronger job security.

2. How does termination of employment work in Poland?

Employment can be terminated by mutual agreement, with notice, or without notice in serious cases. For employees represented by a trade union, the employer may have to notify the union in writing before termination and consider their feedback, though it’s not binding.

3. Are foreign employers required to comply with Polish labor laws?

Yes, any company hiring employees in Poland must follow Polish labor regulations, including proper contracts, social contributions, equal treatment, and payroll compliance.