PRACTICAL BRIEF ON EMPLOYMENT CONTRACTS UNDER POLISH LAW BASED ON RECENT LEGAL CHANGES

Publication date: May 21, 2025

Form of employment contract

The employment contract in Poland should be concluded in writing. If it is not concluded in writing, the employer is obliged to confirm to the employee in writing no later than the day of commencement of work the following:

• type of contract concluded,
• its conditions.

Content of an employment contract – what must it include?

According to Article 29 § 1 of the Polish Labour Code, an employment contract must include at least:

1. Parties to the contract
   • Employee name and surname
   • Employer’s (company) name
2. Type of contract
   • For a trial period
   • For a fixed term
   • For an indefinite period
3. Date of conclusion of the contract
4. Date of the commencement of work
5. Type of work (position or function) – what the employee is expected to do (duties)
6. Place of work – exact address or location
7. Working hours – full time, 1/2 time, 3/4 time, etc.
8. Remuneration for work (with an indication of its components) – e.g. basic salary, bonuses, allowances.

Additional information that the employer must provide in writing (may be a separate document):

In accordance with amendments to the Polish Labor Code (in force from 2023), the employer must also inform the employee (within 7 days of starting work) about, among others:

• night time and overtime rules,
• rules regarding changing the place of work (if provided for),
• entitled breaks at work,
• method of terminating the contract,
• length of vacation leave,
• applicable collective labor agreement (if any).

Additional provisions required for fixed-term contracts:

Fixed-term employment contracts must also meet the general requirements set out in the Labor Code – like any employment contract – but there are additional provisions and restrictions that are worth considering.

1. Specifying the end date of the contract

In a fixed-term contract, it is necessary to clearly specify its end date (e.g. “until December 31, 2025”) or specify its duration in another way (e.g. “for 6 months from May 1, 2025”).

2. Clause on the possibility of early termination of the contract

According to Article 33 of the Labour Code, if a fixed-term contract is concluded for a period longer than 6 months, the parties may provide for the possibility of early termination by giving two weeks’ notice – but this must be recorded in the contract.

Example:
“The parties allow the possibility of terminating this agreement with two weeks’ notice.”

If there is no such provision, the contract cannot be terminated before the final date.

3. Period and time limit for fixed-term contracts

Pursuant to Article 25¹ of the Labor Code:

• You can conclude a maximum of three fixed-term contracts with the same employee.
• The total duration of such contracts may not exceed 33 months.
• Once any of these limits are exceeded, the contract is transformed into a contract for an indefinite period.

Exceptions may apply, for example, to contracts concluded for replacement, for seasonal work or for objective reasons attributable to the employer – but they must be justified in writing.

4. Obligation to state reasons

The amendment to the Polish Labor Code of April 26, 2023 introduced a rule according to which the employer’s statement on the termination of an employment contract concluded for a fixed term or an employment contract concluded for an indefinite period, or on the termination of an employment contract without notice, should indicate the reason justifying the termination or termination of the contract (Art. 30 § 4 of the Labor Code and Art. 45 of the Labor Code). This means that currently, justification is required for each type of contract.

5. Special provisions for seasonal, replacement and project contracts

• In the case of contracts concluded for the purpose of replacement (e.g. for an absent employee), this reason must be specified in the contract.
• For seasonal or project contracts, exceptions to the quantity/time limits may be made, but this must be justified in writing.

When an employment contract can be terminated for reasons attributable to the employee:

An employment contract may be terminated for reasons attributable to the employee in specific situations provided for by the Labor Code. Depending on the type of contract and the situation, there are various ways to terminate the contract – including termination without notice due to the employee’s fault. Here is a detailed list:

1. Termination of an employment contract without notice due to the employee’s fault (so-called disciplinary action)

Pursuant to Article 52 § 1 of the Labour Code, the employer may terminate the contract without notice due to the employee’s fault in the event of:

a) Serious breach of basic employee duties

– e.g. refusal to follow an order, gross violation of occupational health and safety regulations, drunkenness at work, leaving the workplace without justification.

b) Committing a crime

– if the crime is obvious or has been established by a final judgment and its nature makes further employment impossible (e.g. theft, forgery of official documents).

c) Culpable loss of qualifications necessary to perform work

– e.g. a driver loses his driving license, a doctor loses the right to practice his profession, and this situation was caused by the employee. The employer has 1 month from receiving information about the reason to apply disciplinary termination of the contract.

2. Termination of the contract by notice – justified reasons on the employee’s side

If the employer terminates a contract for an indefinite period by notice, he must provide a specific reason that:

• is real and concrete,
• falls within the catalogue of so-called “culpable” or “inappropriate” employee conduct.

Examples of causes:

• frequent unexcused absence,
• violation of labor discipline,
• failure to fulfil obligations (e.g. delays, errors),
• loss of trust (if justified, for example, by abuse of authority).

3. Termination of the contract for health reasons (in certain cases)

If an employee who is incapacitated for work has lost the ability to perform work and there is no other position for him:

• after a long-term incapacity for work has been certified by an occupational medicine physician,
• or when the period of protection resulting from sick leave ends.

4. Termination of the contract by mutual consent

Here, there is no need to indicate fault, but the cause may be a situation resulting from the employee’s behavior – e.g. failure to comply with the arrangements, lack of cooperation. In this mode, the parties themselves establish the terms of termination.

SUBSTANTIVE PREMISES (i.e. “substantive” reasons)

An employer may terminate a contract without notice due to the employee’s fault only in strictly defined situations:

1. Serious violation of basic employee duties

(Article 52 § 1 point 1 of the Labor Code)

What does it mean?

An employee’s breach of his or her key obligations (arising from the contract, work regulations, health and safety regulations) in a manner that:

• culpable (intentionally or through gross negligence),
• serious – so that further employment with him is not possible.

Examples:

• unjustified absence from work,
• leaving the position without consent,
• drunk or drugged at work,
• refusal to obey an order,
• aggressive behavior towards co-workers,
• gross violation of occupational health and safety regulations.

2. Committing a crime during the term of the employment contract

(Art. 52 § 1 point 2)

Conditions:

• the crime must be obvious (e.g. caught red-handed) or confirmed by a final court judgment,
• it must be a crime that makes further employment impossible, e.g. theft, forgery, threats.

3. Culpable loss of qualifications necessary to perform work

(Art. 52 § 1 point 3)

Examples:

• a driver loses his driving license for driving under the influence of alcohol,
• a doctor loses the right to practice his profession as a result of culpable conduct.

FORMAL PREREQUISITES (i.e. employer’s obligations)

For the exemption to be effective, certain formal requirements must also be met:

1. Deadline:

• The employer has 1 month from the date of receiving information about the reason justifying the dismissal to issue a disciplinary notice.

2. Written form:

• Termination of the contract must be in writing.
• The letter must include:
  • legal basis (e.g. Art. 52 § 1 item 1 of the Labor Code),
  • a specific description of the offense (what, when, how),
  • information about the possibility of appealing to the labor court.

3. Consultation with trade union (if applicable):

• Where an employee is covered by union protection, the employer must seek the union’s opinion before issuing a disciplinary notice.

Attention:

Disciplinary action is the most rigorous form of dismissal – labor courts often examine it very carefully. If it is poorly justified or disproportionate, the employer may lose the case and be required to:

• reinstatement of an employee to work,
• payment of compensation.

When the employment relationship ends:

When does an employment relationship expire?

1. Death of an employee

(Article 63¹ of the Labor Code)

• The employment relationship expires on the date of the employee’s death.
• There is no possibility of continuing or inheriting it.

2. Death of employer

(Article 63² of the Labor Code)

• As a rule, an employment relationship expires upon the employer’s death, unless the workplace is taken over by another entity (e.g. heirs, co-owner).
• Exceptions are possible if the business has a legal form (e.g. a partnership) that does not depend on a single natural person.

3. The employee’s absence due to temporary arrest has elapsed for 3 months.

(Article 66 § 1 of the Labor Code)

• If an employee is temporarily arrested and does not report for work for more than 3 months, the employment contract expires by operation of law.
• Exception: if the employee is employed under a fixed-term contract for less than 3 months, the termination occurs after this period.

4. Loss of the right to practice a profession – if it results from separate provisions

5. Removal from a position – in the case of appointment as a basis for employment

(Article 70 of the Labor Code)

• Applies to persons employed on the basis of appointment, e.g. school principals, some officials.
• In the event of dismissal from a position, the employment relationship is terminated or transformed, depending on the circumstances.

Group layoffs in Poland are regulated by the Act of 13 March 2003 on special principles for terminating employment relationships with employees for reasons not related to employees (Journal of Laws 2003 No. 90 item 844). They concern situations when an employer terminates employment relationships with a larger number of employees for reasons attributable to them , e.g. restructuring, liquidation of positions, economic problems.

1. When does a collective dismissal occur?

2 conditions must be met:

a) Number of laid-off employees:

Within 30 days, the employer must terminate the employment relationship for reasons unrelated to the employees with:

• at least 10 employees if it employs up to 100 people,
• at least 10% of the staff if it employs from 100 to 299 people,
• at least 30 employees if it employs 300 or more people.

This includes not only dismissals with notice, but also agreements between the parties if the initiative comes from the employer.

2. What are the employer’s obligations in the event of collective layoffs?

a) Consultation with trade unions (if they exist)

The employer must undertake consultations :

• present the reasons for dismissals, number of employees, time, selection criteria,
• discuss possibilities of avoiding or limiting redundancies and support for those made redundant (e.g. retraining).

b) Agreement or regulations

After consultation:

• is concluded with trade unions,
• if there are no unions, the employer issues regulations specifying the rules for dismissals.

3. Reporting to the employment office

The employer must report the intention and results of dismissals to the District Labor Office.

• It includes, among other things, the reasons for dismissals, the professional groups covered by the dismissals, and the planned dates.
• The District Labor Office may offer support (e.g. professional activation programmes).

4. Protection of specially protected employees

You cannot be dismissed as part of a collective dismissal, e.g.:

• pregnant women,
• employees of pre-retirement age (4 years before retirement),
• people on maternity, parental or parental leave,
• trade union activists.

Their working and pay conditions can be changed (by way of notice of change), but they cannot be dismissed.

5. Severance pay for dismissed employees

According to the Act, an employer must pay severance pay if:

• the exemption is group or individual,
• and the reason lies with the employer (e.g. reorganization, elimination of position).

Severance pay amount:

Depends on length of service with a given employer:

• 1 month salary – if the employee was employed for <2 years,
• 2 months – for 2–8 years of experience,
• 3 months – over 8 years.

Maximum severance pay: 15 times the minimum wage (statutory limit).

6. Individual dismissals for reasons not related to the employee

If an individual employee is dismissed, but for the same reasons (e.g. elimination of a position), a severance payment is also due if the company employs at least 20 people.

Claims related to the establishment and termination of an employment relationship are the rights and obligations that an employee (and in some cases an employer) is entitled to under the Labor Code and other regulations.

Below there are presented the most important of them – divided into two groups:

CLAIMS WHEN EMPLOYMENT IS ESTABLISHED

Although less common, claims may also arise at this stage, mainly if the employment contract was concluded improperly or contrary to the regulations.

1. Claim for reinstatement after unlawful refusal to hire

• For example, a candidate won a competition for a position in a public entity, but the employer did not conclude a contract with him – he may demand employment.

2. Claim to establish the existence of an employment relationship

• If someone actually works as an employee (under management, in a specific place and time), but is employed, for example, on the basis of a contract for services, he or she may seek recognition as an employee.

CLAIMS WHEN TERMINATING EMPLOYMENT

This is by far the most common group of claims – they concern situations where an employee believes that he or she has been dismissed unlawfully, unfairly or in breach of procedures.

1. Claims in the event of unlawful termination of an employment contract

The employee may request (Article 45 § 1 of the Labor Code):

• Reinstatement to work,
• Payment of compensation (e.g. salary for the notice period).

2. Claims in the event of unlawful termination of the contract without notice

Concerning the so-called disciplinary action (Article 56 of the Labor Code):

• The employee may demand reinstatement to work,
• Or compensation (in the amount of remuneration for the notice period or for 3 months – in the case of a contract without a notice period).

3. Claim for severance pay

If the reasons for terminating the contract lie with the employer (e.g. liquidation of a position, collective redundancies) – the employee has the right to:

• severance pay for collective redundancies (Collective Redundancies Act),
• retirement and disability severance pay (Article 92¹ of the Labor Code) – a one-off payment upon retirement or disability.

4. Claim for an employment certificate

• The employer must issue an employment certificate within 7 days of termination of employment.
• If he or she fails to do so, the employee may file a lawsuit seeking correction or issuance of a certificate.

5. Claim for compensation for unused leave

• Upon termination of the contract, the employee must receive cash compensation for unused vacation leave.

6. Claim to have the termination notice declared ineffective

• If an employee files a lawsuit before the notice period expires, he or she may request that the court declare the notice of termination to be null and void (Article 45 § 1 of the Labor Code).

7. Claim for invalidation of termination in breach of protection

• If the notice concerned a protected person (e.g. a pregnant woman, an employee of pre-retirement age), it may be considered invalid.

Legal acts:

1. Labor Code

Act of 26 June 1974 – Labor Code (Journal of Laws 1974 No. 24 item 141, as amended) – in particular:

1. Art. 29 (content of the employment contract)
2. Art. 52 (termination of the contract without notice due to the employee’s fault)
3. Art. 63¹ and 63² (termination of employment)
4. Art. 45, 56 (claims upon termination of contract)
5. Art. 92¹ (retirement allowance)
6. Art. 66 (temporary arrest and termination)
7. Act on special principles for terminating employment relationships with employees for reasons not attributable to the employees Act of 13 March 2003 (Journal of Laws 2003 No. 90 item 844, as amended) – regulates the principles of group and individual dismissals for reasons attributable to the employer.