Poland stands out as a top European destination for business expansion, all thanks to its skilled workforce, strategic location in Europe, and strong economic performance. 

As companies look to tap into this market, understanding and aligning with Polish employment law and recruitment procedures is vital for the successful operation of their business.

Payoneer Workforce Management can help simplify local hiring, handling payroll, benefits, and compliance without the need to establish a physical entity. This guide covers everything you need to know about employment in Poland, from legal issues to payroll.

How to hire employees in Poland

As an employer, hiring in Poland requires knowledge of the legal basics, especially the Labor Code (Kodeks Pracy), as well as tax and administrative regulations. Here are the main ways to do it:

1. Setting up a local entity

Setting up a local entity could be an option for companies with plans for long-duration operations in Poland. Once set up, either a foreign or local business can hire directly and maintain full control of its workforce. The process involves:

• Register your company online through the Biznes.gov.pl platform. Complete registration in Central Registration and Information on Business (CEIDG) for sole traders (self-employed) and in KRS for companies. 

However, setting up a local entity entails humongous efforts, in terms of administration, budgets, and local compliance, and it may take months or years before a company can make its first local hire.

2. Hiring independent contractors 

In Poland, companies often hire via civil law contracts, like ‘contract of mandate’ or ‘contract for a specific task’, as outlined in the Civil Code. These are well-suited for project-based work since independent contractors aren’t treated as employees under the Labor Code. 

• However, if a contractor is managed like an employee with specific working set hours, at a fixed location, under supervision, a labor court can reclassify them as an employee.

• A contractor handles their own tax and social security contributions. 
• If a contractor wishes to register as a sole proprietorship, they must complete the CEIDG-1 form for registration in the Central Register and Information on Economic Activity in Poland.

3. Partnering with a workforce management platform

As a foreign company, hiring an employee in Poland is through a workforce management platform can help streamline the process.

For instance, Payoneer Workforce Management can help handle the legal paperwork and procedures for local talent on your behalf. This way, you stay compliant with the laws and the Labor Code in Poland.

Using a workforce management platform in Poland

Hiring through a workforce management platform in Poland lets your company grow in the country without setting up a local office. 

For example, Payoneer Workforce Management can help you compliantly engage with local talent, while assisting with onboarding, employment contracts, payroll, taxes, benefits, work permits, and more, thereby freeing you to focus on your core business. 

Payoneer Workforce Management helps make recruitment seamless, supporting hires in over 160 countries, processing payments in approximately 70 currencies, while making utmost efforts to adhere to all local regulations. If you want to expand into Poland, using a trusted solution provides a fast and low-risk solution.

Payroll in Poland

In Poland, companies typically pay salaries on the last day of each month. Many foreign companies outsource their payroll in Poland to save time, reduce legal risks, and stay compliant with tax, social security, and reporting rules.

Here is a quick summary of the payroll:

Topic	Rule
Minimum Gross Salary	From January 1, 2025, the gross monthly minimum wage is PLN 4,666. Effective from January 1, 2026, the minimum wage will be PLN 4806 gross per month.
Deductions	Income Tax: There is no income tax upto 30,000 PLN, 12% up to PLN 120,000 and 32% above that
Record Keeping	10 years for payroll and employment documents

Manage payroll with Payoneer Workforce Management. Get started today!

Employment laws in Poland

In Poland, the employment law is regulated in the Labor Code, 1974. The laws and policies mentioned there are as follows:

• Working hours: According to the Labor Code, the hours of work shall be either 8 hours per day or, on average, 40 hours per week in an average of a five-day working week.

• Rest periods: Each employee is entitled to a rest period of at least 11 hours in a day and at least 35 hours of uninterrupted rest in a week

• Overtime regulations: Overtime work refers to work that exceeds 8 hours per day or 40 hours per week. An employee may work up to 13 hours per day, including overtime, with an average of no more than 48 hours per week over the reference period. Additionally, individual employees are limited to a maximum of 150 hours of overtime per calendar year.
  
• Overtime compensation:
• 100% remuneration for overtime work at night, on Sunday, or on public holidays, or in case of overtime that causes the execution of work beyond the 40-hour weekly work standard
• 50% remuneration for overtime work on working days

• Probationary Period: In Poland, probationary periods cannot exceed 3 months. During this period, termination of employment with shorter notice periods may be affected by either party.

Minimum wage in Poland 

Since January 1, 2025, the minimum salary in Poland is PLN 4,666 gross per month, and starting January 1, 2026, it will be PLN 4806. This pay is for candidates who are employed under a standard employment contract (umowa o pracę).  

Employment contracts in Poland

Polish law recognizes several main contract types, each with defined rules under the Polish Labor Code and Civil Code:

• Employment Contracts (Umowa o Pracę): An employment contract in Poland contains all the rights and benefits given to an employee. These contracts may be for a certain or unlimited time and should include specific provisions such as job description, salary, working hours, and place of work.

• Commission Contracts (Umowa Zlecenie): This type of contract is preferred for short-term, flexible, project-based roles, providing employees and employers with a higher degree of flexibility. It is issued under the Civil Code (Kodeks Cywilny).

• Contract for Specific Work (Umowa o Dzieło): This type of contract is used for completing specific deliverables or projects and is typically used for freelance or consulting work.

All employment contracts in Poland must be concluded in writing and should clearly specify the terms and conditions of employment. The contract must include information about the employer and employee, job description, salary, working hours, and other relevant terms.

Leave policy in Poland

The employees in Poland get benefits with the following leaves:

• Annual leave: The annual leave in Poland consists of:
  • 20 working days per calendar year for those with less than 10 years of work experience
  • 26 working days per calendar year for those with 10 years and beyond

• Leave acquisition and usage:
  • Leave is acquired monthly (1/12 of annual entitlement per month worked)
  • Leave should be taken in the same calendar year or by September 30 of the following year
  • One part shall be not less than 14 consecutive calendar days
  • 4 days shall be taken on demand (request) and form part of the annual leave entitlement

• Maternity leave: The duration of maternity leave in Poland depends on how many children were born at one birth, such as:

Number of children born	Maternity leave (in weeks)
1 child	20 weeks
2 children	31 weeks
3 children	33 weeks
4 children	35 weeks
5 or more children	37 weeks

• In case of pregnancy loss, employees are entitled to 8 weeks of leave.
• By law, the mother is entitled to 14 weeks of maternity leave following childbirth. She can waive the remaining 6 weeks and return to work early only if:
  • The father takes the unused 6 weeks, o,
  • A father who left his job to care for the child takes those 6 weeks.

The employee must submit a written request at least 7 days before returning to work.

• Paternity leave: The father is granted 2 weeks of paternity leave. 

• Sick leave: An employee has the right to receive wages for a period of incapacity for work due to illness or confinement resulting from an infectious disease. The duration of payment for sick leaves as per the calendar year is:
  • Up to 33 days of sick pay for employees under 50 years of age 
  • Up to 14 days of sick pay for employees who have reached the age of 50 during the calendar year in question

According to the Labor Code, sick pay rates should be:

• 80% of remuneration for the regular periods of sickness
• 100% of remuneration for:
  • Accident on the way to or from work
  • Illness during pregnancy
  • Necessary medical examinations for donors of cells, tissues, and organs

• Extended periods of sick leave: In cases of incapacity for work exceeding the allowed 33 or 14 days (depending on age), a sickness benefit is granted by the ZUS (Social Insurance Institution).

• Public holiday: Poland has 13 public holidays: 

Date	Holiday
1 January	New Year’s Day
6 January	Epiphany (Three Kings’ Day)
Easter Sunday	Varies
Easter Monday	Varies
1 May	Labor Day (May Day)
3 May	Constitution Day
Pentecost Sunday	Varies
Corpus Christi	Varies
15 August	Assumption of the Blessed Virgin Mary and Armed Forces Day
1 November	All Saints’ Day
11 November	Independence Day
24 December	Christmas Eve (new holiday from 2025 onward)
25 December	Christmas Day
26 December	Second Day of Christmas (St. Stephen’s Day)

Employment Termination in Poland

Employment termination in Poland is subject to specific legal conditions, depending on the type of contract and the circumstances of termination. Understanding these requirements is crucial for maintaining legal compliance.

• Notice periods: The legal notice period varies depending on the length of employment:

Length of Employment	Notice Period
Less than 6 months	2 weeks
6 months to 3 years	1 month
More than 3 years	3 months

• Type of termination: Termination of employment contracts can occur under:

• Mutual economic agreement between the employer and the employee
• Termination by notice by either party
• Termination without notice under special grounds

• Severance pay: In cases of redundancy or certain types of termination, employees will be entitled to severance pay equivalent to
  • 1 month’s salary for less than 2 years of service.
  • 2 months’ salary for 2 – 8 years of service.
  • 3 months’ salary for more than 8 years of service.

• Termination procedures: You must provide a written notice during termination and, in some cases, consult with employee representatives or trade unions.

Company registration in Poland

If you’re running a regular, profit-making business, you can register a business online at Biznes.gov.pl. A business should be started by Polish citizens or other legally eligible foreigners. One can conduct business as a sole trader or establish a company, such as a limited liability company (sp. z o.o.).

The steps you need to follow for company registration in Poland are:

• Choose a company name: Your business name must include your full legal name. You should also add descriptive text, such as your service or location. 

• Address establishment: You can set up your business from your home, office, or a mobile setup. You must be legally allowed to use the address you want to register as your business address.

• PKD code selection: Choose a primary and optional secondary PKD code(s) for your business activity. These affect taxes, reporting, and licensing needs. 

• Checking license requirements: Most activities do not require a license. But for some (like transport or finance), a license or permit may be required after registration.

• Choose a tax option: When registering, you can select your preferred method of paying income tax.

• Set the accounting method and a bank account: Required payments cover retirement, disability, accident, and health insurance; you may qualify for relief for new entrepreneurs. Depending on the kind of taxation you have applied for, these can be:

• A simple ledger (mostly for sole traders)
• Full accounting (for bigger companies)

You also need a bank account for business. VAT payers must use a business bank account listed on the White List of VAT Payers. Cash transactions over PLN 15,000 are not allowed between businesses.

• Inquire about social security contributions: Following the registration, you will be required to claim contributions to ZUS (Social Insurance Institution), consisting of:
  • Registration for pension and disability insurance
  • Registration for health insurance
  • Registration of accident insurance
  • Labor Fund and Solidarity Fund.

PEO in Poland

In Poland, a PEO engages in a dual employment relationship with your company. While you manage daily work, the PEO handles local compliance and provides HR support. A PEO in Poland helps you with:

• Onboarding and termination of employees
• Compliance with Polish labor laws and registration with ZUS
• Payroll administration and tax reporting
• Administration of employee benefits, insurance contributions

For companies looking to move quickly and streamline the process, workforce management platforms offer a better way to manage local talent.

Payoneer Workforce Management services in Poland

If you are trying to expand your business in Poland, Payoneer Workforce Management can offer support with onboarding local hires. 

With our workforce management solution, you can hire in 160+ countries and pay in 70 currencies. The platform enables the quick onboarding of local hires while helping you stay compliant with Polish employment laws.

Book a demo today.

FAQs

1) What is the employer of record in Poland?

Typically, an Employer of Record (EOR) legally hires and manages employees on behalf of a company/employer. However, this model may not be applicable in Poland, so companies may use a workforce management platform. It helps handle employment contracts, payroll, taxes, and support compliance with Polish labor laws, allowing businesses to operate without setting up a local entity in the country. 

2) What is the probation period for employees in Poland?

The probationary period in Poland can be up to 3 months maximum. Though not mandatory by law, during this period, either party can terminate the employment with shorter notice periods. The probation clauses cannot be included within regular employment contracts and need a separate probationary contract.