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Hiring in Poland
Background checks in Poland
Employment options in Poland
Language requirements in Poland
Corporate payroll requirements and payroll setup in Poland
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Employer of record in Poland
Hiring employees in a foreign country usually means setting up a local legal entity. And, while the process is different in each country, it’s often time-consuming and expensive. If you only want to take on a handful of employees in Poland, it’s probably not worth the hassle.
One common alternative is to take on workers as independent contractors instead of employees. But this approach is risky, because, like many countries, the Polish government takes issues of employee misclassification seriously. Employers that are found to have misclassified employees as self-employed contractors can be fined up to PLN 30,000 (around EUR 7,000).
Thankfully, there is another solution: engage workers through an employer of record, or EoR.
What is an employer of record (EoR)?
An employer of record (EoR) is an organisation that hires employees on behalf of other businesses. When you engage workers through an EoR, the EoR acts as those workers’ legal employer and manages things like payroll, tax withholding, and benefits administration on your behalf. They may also provide additional HR services like onboarding and answering employee queries.
Using an employer of record in Poland
Using an employer of record in Poland allows you to compliantly hire Polish workers without the hassle of setting up a legal entity. You also won’t need to worry about the potential of employee misclassification that comes with taking on workers as independent contractors.
These days, there are many companies offering employer of record services in Poland, so it’s important to carefully choose your provider to ensure they can meet your needs. For example, at CXC, we have been providing EoR services around the world for more than 30 years.
Our team are experts in local and international employment law, which means we’ll ensure your Polish operations are smooth and compliant.
Hiring in Poland without an EoR
If you choose to hire employees without the help of an EoR service provider, you’ll need a thorough understanding of the rules and regulations that govern employment in Poland. You’ll also need to familiarise yourself with the norms and expectations of workers in Poland, so you can give your Polish team the positive employee experience they deserve. In this guide, we’ll take you through some of the main things you’ll need to know to hire employees in Poland.
Hiring in Poland
Each country has its own rules and regulations when it comes to hiring employees. In Poland, job hiring rules are mostly set out in the Labour Code Act of June 26, 1974, which defines the rights and obligations of employers and employees. This piece of legislation provides minimum conditions for things like working hours, minimum wage, and workplace health and safety. Generally speaking, employment law in Poland tends to be quite favourable to employees.
9 steps to hire in Poland
Companies that want to hire in Poland need to meet certain requirements in order to do so compliantly and legally. There may be more extensive requirements for foreign companies or companies hiring foreigners in Poland.
Here are the nine steps that make up the hiring process in Poland:
Prepare an employment contract: The first step in job hiring in Poland is to draft an employment contract. It’s best practice to provide a written contract, though verbal contracts are technically acceptable. The contract should also be in Polish, although you can choose to provide a bilingual contract.
Sign the employment contract: In Poland, employment contracts typically need to be signed on paper, using a ‘wet signature’. An exception is when both parties possess a ‘qualified electronic signature’, but this is rare for employees. Regular electronic signatures (like those created through DocuSign and other providers) are not acceptable.
Sign mandatory employment documents: There are certain mandatory documents that employers must provide to their employees in Poland. These include a questionnaire for employees, a personal data processing information clause, and a work terms and conditions statement.
Sign optional employment documents: Employers in Poland can also choose to have their employees sign additional documents, such as non-disclosure agreements, non-competition agreements, or remote work agreements.
Open employee files: Employers in Poland are required to create and maintain a personal file for each employee. This file should include all relevant employee documents, including those gathered during the recruitment process and those related to the employment relationship. Employers can choose whether to maintain this file in physical or electronic format.
Mandatory medical examination: Medical examinations are a key part of the hiring process in Poland. Each employee must obtain a medical certificate that confirms their ability to work in any given position. The employer has to organise and pay for this medical examination before the employee can start work.
Mandatory OHS training: All employers in Poland have to provide their employees with initial occupational health and safety (OHS) training before they start a job. They must also provide periodic training during their employment.
Register employees in ZUS: When you hire an employee in Poland, you have to register them with the Social Security Office (ZUS). Employers have to do this within 7 days of each new employee’s start date.
Enrolment to PPK: As of 2018, employers have to enrol employees between the ages of 18 and 55 in an Employee Capital Plan (PPK) once they have been employed for at least three months. This is a private long-term savings plan designed to help employees put money aside for the future. Employees can choose to opt out of the PPK if they want to.
Background checks in Poland
Background checks in Poland are legal, but they are quite limited. Employers must take care to adhere to data protection laws and must get the candidate’s consent before they carry out certain checks. Common background checks in Poland include criminal record checks, reference checks and employment history verification.
Permissible background checks in Poland
In Poland, background checks are not obligatory but are common in certain industries. For example, employees working in sensitive sectors like healthcare, education, law enforcement, or financial services are usually subject to background checks.
These checks might include criminal record checks, employment and education verification, and reference checks. For roles in financial services, employers may also perform a credit history check to assess the candidate’s financial integrity and reliability.
Criminal records checks in Poland
Employers in Poland can only request information on an employee’s previous convictions if it is required by law or to check if an employee has the right to work in a particular role. Personal data related to criminal convictions can only be processed by official authorities, so employers wishing to carry out a criminal background check in Poland have to make a request to the National Crime Register.
Limitations on background checks in Poland
Background checks in Poland are subject to strict limitations. Employers may only carry out background checks if the information they are seeking is laid out in the Labour Code or in other acts relating to specific roles or industries. Employers must also get candidates’ consent before carrying out any checks. If an employee withdraws their consent for a background check (including a criminal record check), this can’t be used against them as a reason for refusing employment.
Specific restrictions also apply to each type of employee background check in Poland. For example, employers can carry out verification of a potential employee’s work history, but they can only request a limited set of data that confirms the employee’s ability to perform the job they’re being hired for. Employers are not permitted to contact schools attended by candidates to confirm the authenticity of their certificates and qualifications.
Social media checks are also subject to strict limitations. Verifying candidates’ profiles on professional sites like LinkedIn is generally permissible, but browsing private profiles might constitute a breach of privacy under Polish law. Employers should be very wary of carrying out this type of background check in Poland.
Does Poland require a criminal background check for work visas?
The Polish government requires applicants for visas or residence permits to undergo a background check that includes a check for previous criminal convictions. Having a criminal record doesn’t necessarily mean that someone will be unable to obtain a Polish visa — the rules are different depending on the type of unlawful history.
Employment options in Poland
If you want to hire in Poland, it’s important to consider which employment option is most appropriate for your situation and the work you want the worker to complete. For example, you might take on a worker as an independent contractor if the work is of a short-term nature and is secondary to your main business activity. In other situations, it might be more appropriate to hire an employee, either on a full-time or part-time basis.
3 main employment options in Poland
Here are the three options businesses have available when hiring in Poland:
- Employee: Employees in Poland are workers who have signed an employment contract with their employer. They might be hired on an open-ended or fixed-term basis, and they are usually subject to a probationary period. Polish law prohibits employers from discriminating against employees because they work part-time or on a fixed-term contract.
- Independent contractor: An independent contractor in Poland is someone who is engaged under a civil law agreement, not an employment contract. However, a worker with a civil law agreement may be deemed an employee if they are subject to the supervision of the employer, and the employer controls the time and place of the work and how it is completed. Employers of independent contractors must still register them with the Social Insurance Institution (ZUS) within seven days of their start date.
- Agency worker: Agency workers in Poland are commonly used to cover short-term needs, such as seasonal work or the temporary absence of a permanent employee. However, there are limitations on how companies can use this type of worker. For example, employers can only employ an agency worker for a total of 18 months within a 36-month period.
The importance of proper worker classification in Poland
If you hire employees in Poland, it’s important to ensure they’re correctly classified. In the eyes of the law, the contract you have signed with a worker doesn’t matter as much as the actual nature of your working relationship.
That means that, if you have taken on someone as an independent contractor when the nature of the work implies, they are really an employee, you could face fines and penalties. This can also be very damaging to a company’s reputation, as it means depriving workers of the rights, protections, and benefits they would be entitled to as employees.
Using an EoR: an alternative hiring option in Poland
Of course, there is also a fourth employment option in Poland: hiring employees through an employer of record (EoR). This is a particularly attractive solution for foreign businesses that want to hire employees in Poland without the hassle of setting up a legal entity, and without opening themselves up to potential employee misclassification claims.
Language requirements in Poland
Documents related to employment in Poland legally have to be written in Polish. However, it’s possible to provide employees with a bilingual version of these documents if they don’t speak the language. If there is any discrepancy between the two versions of an employment document in Poland, the Polish version prevails.
Language requirement for permanent residency in Poland
Applicants for long-term residence permits in Poland or Polish citizenship need to prove that they have a certain level of written and spoken Polish to have their application accepted. To meet this requirement, they must show either:
- A state certificate of knowledge of Polish at least at level B1 on the Common European Framework of Reference for Languages (CEFR)
- A diploma showing they have studied in Poland with Polish as the language of instruction
- A degree certificate showing they have studied abroad with Polish as the language of instruction
Corporate payroll requirements and payroll setup in Poland
The corporate presence requirements for hiring employees in Poland depend on where your business is based. Businesses based in EU countries don’t necessarily need to have a local corporate presence, but they do need to meet certain compliance requirements for payroll. Companies based outside of the EU need to set up a local entity in order to hire in Poland.
In theory, all companies can hire independent contractors in Poland without the need for a local corporate presence. However, this is a risky approach, because it could open up your business to claims of employee misclassification. Businesses operating in Poland may also be deemed to have a ‘permanent establishment’ there, which means they are liable for corporate taxes. Permanent establishment can be triggered even if the company doesn’t have a legal entity in Poland.
Setting up payroll in Poland
To set up payroll in Poland, companies need to register with the Polish Tax Authority and be issued with a Polish tax identification number (NIP). They also need to register with the Polish Social Security Institution (ZUS). Employers must also register each new employee with the ZUS within seven days of their start date.
Foreign companies wanting to hire in Poland have to register at the National Court Register (KRS). In this case, there is no need to separately register with the local tax authority as foreign businesses are automatically registered as part of the incorporation process.
Businesses with more than 25 employees have to register for the State Fund for Rehabilitation of Disabled Persons (PFRON). Setting up a local bank account is not a legal requirement but is recommended to make running payroll easier.
Easily hire employees in Poland with our EoR solution
Hiring employees in Poland usually means setting up a legal entity, which can be costly and time-consuming. Employers can avoid this hassle by working with an Employer of Record (EoR), like CXC.
Through our EoR solution, you can confidently hire employees in Poland, without worrying about compliance issues. We’ll handle everything from payroll to benefits to employment contracts on your behalf — so all you have to think about is finding the right person for the job.
Compliantly hire workers anywhere with CXC
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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