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End of employment in Poland

Every employment relationship ends eventually, and it’s important to understand the rules and regulations that apply when that happens. However, every country has its own laws about termination of employment, notice periods, and more. If you plan to hire employees in Poland, you’ll need to ensure you understand these rules.

We’ve put together this guide as an end-of-employment checklist to help you ensure your operations are compliant. We’ll cover some of the crucial aspects of ending an employment contract in Poland, including the post-termination restraints you can impose on your employees, and what happens to employees after a transfer of undertaking.

Notice periods in Poland

Employers and employees in Poland have to give a certain amount of notice if they want to end their employment relationship. The length of notice they have to give is defined in the Polish Labour Code and depends on how long the employee has been employed.

Notice periods in Poland

The length of the notice period in Poland depends on the employee’s length of service. The statutory notice periods are as follows:

  • Less than six months’ service: Two weeks
  • Between six months and three years’ service: One month
  • At least three years’ service: Three months

The notice period is the same for employees and employers. That means that an employee has to give the same amount of notice to resign as an employer would have to give to terminate their contract.

Notice periods for fixed-term contracts in Poland

The notice period in Poland for fixed-term contracts is two weeks, as long as the contract is for at least six months and there is a termination clause in the contract.

How to calculate notice periods in Poland

Notice periods in Poland are calculated based on calendar months or whole weeks. If a notice period is given in months, it starts on the first day of the following month. If a notice period is given in weeks, it ends on the Saturday after the end of the notice period.

For example, if an employer gave their employee one month’s notice on Monday 17 July 2024, the notice period would not start until 1 August. The employee’s last day of employment would be 31 August. If an employer gave an employee two weeks’ notice on the same day, their notice would end on Saturday 26 July.

Exceptions to notice periods in Poland

There are some circumstances where employers and employees may not have to give notice to terminate their employment agreement. For example, employers don’t have to give notice to dismiss employees due to gross negligence or misconduct, and employees can resign without notice in the case of a breach of contract on the part of their employer.

Severance pay in Poland

Employers in Poland must pay their employees severance pay if they are terminated for reasons unrelated to their conduct or performance. For example, companies have to pay severance pay if they lay off employees for economic or business reasons.

The amount of severance pay employees are entitled to depends on their length of service. Employers must pay:

  • One month’s salary to employees with less than two years of service
  • Two months’ salary to employees with between two and eight years of service
  • Three months’ salary to employees with eight or more years of service

Only employers with at least 20 employees have to pay severance pay for individual dismissals, but all employers must pay it in the case of collective redundancies.

Termination of employment in Poland

The termination of an employment contract in Poland can be due to a mutual agreement, or because the employee resigns. There are also certain circumstances in which employers can choose to terminate their employees’ contracts. However, there are strict rules that apply in these situations.

Reasons for termination of employment in Poland

Generally speaking, there are three ways an employer can terminate an employment contract in Poland:

  • Termination by mutual agreement: This is when an employer and an employee collectively decide to end their employment relationship.
  • Termination with notice period: This is when employers choose to terminate an employment contract by giving the employee the correct amount of notice as set by the Labour Code.
  • Termination without notice: This is when an employer dismisses an employee immediately, without a notice period. There are strict limitations on when this can be done in Poland.

Termination by mutual agreement in Poland

In the case of a termination by mutual agreement, the employer and the employee can decide between themselves on the terms and conditions of the termination, including whether it is effective immediately or at a future date. Termination by mutual agreement should be agreed in writing, with wet signatures.

In practice, employers often offer their employees termination by mutual agreement as an alternative to termination with or without a notice period. They may therefore offer additional benefits to encourage the employee to take this route and eliminate any potential disputes.

Termination of employment with notice period in Poland

Employers and employees can terminate an employment contract in Poland by giving the correct notice. For employers, certain circumstances have to apply for a termination to be legal. For example, employers can give notice of termination to their employees for any of the following reasons:

  • Business-related issues
  • Collective redundancies
  • Prolonged underperformance

Termination of employment without notice in Poland

Employers in Poland can dismiss employees without notice if they have a valid reason. This may be known as a disciplinary dismissal and includes situations where the employee:

  • Has committed a criminal offence
  • Has seriously violated their duties
  • Has lost a licence required for the role

Polish law doesn’t provide a specific definition of a ‘valid’ or ‘justifiable’ reason for a disciplinary dismissal. In the case of a dispute, each case is individually evaluated by the labour court.

Unlawful or unjustified termination of employment in Poland

If an employee believes they have been unfairly terminated in Poland, they can take their case to the labour court. There are two remedies available to employees who have been unfairly dismissed: they may be reinstated, or they may receive compensation. The amount of compensation depends on the type of contract and the mode of termination but can’t exceed three months’ salary.

Post-termination restraints in Poland

Post-termination restraints are restrictions that employers can impose on their former employees’ actions after the end of their employment. The idea is to prevent those ex-employees from damaging the company’s business interests. However, there are limitations on how employers can use post-termination restraints in Poland.

Non-compete agreements in Poland

Non-compete agreements are a common type of post-termination restraint in Poland. These may prevent former employees from working for or setting up a competing business in the same geographic area. In Poland, employers must pay their former employees compensation for non-competition as long as they want the non-compete clause to apply. This compensation can’t be less than 25% of the employee’s former salary.

Customer non-solicits in Poland

Employers in Poland can also prevent former employees from soliciting their customers or clients, by asking them to sign a customer non-solicit agreement. This is most common for employees who have a lot of contact with customers. This type of clause may be included in a non-compete agreement.

Employee non-solicits in Poland

Employee non-solicitation clauses are designed to prevent employees from ‘poaching’ employees from their former employers. This is a common type of post-termination restraint, which many Polish employers include in their contracts.

However, there is some debate as to whether these clauses are enforceable since they violate the right to freely choose employment, which is an important employee right in Poland.

Waivers in Poland

Under Polish law, it is not possible for employees to waive their statutory rights, including rights related to remuneration. This means that it can be difficult for employers and employees to reach settlement agreements in Poland, since employees can’t waive their rights to remuneration they are owed. A settlement agreement may be inadmissible if it involves an employee waiving their statutory rights.

Polish law also stipulates that employees can’t waive any and all claims against the employer regarding monetary compensation or other benefits in the future. That means that an employee could continue to bring further claims against their (former) employer, even after signing a settlement agreement.

Transfer of undertakings regulations in Poland

A transfer of undertaking is when one company is bought or acquired by another company. In this situation, each country has its own rules about what happens to the employees of the purchased company. In Poland, these rules are set out in the EU Transfer of Undertakings (Protection of Employment) (TUPE) directive and the Polish Labour Code.

Employees’ rights after a transfer of undertakings in Poland

Transfer of undertaking regulations in Poland state that the employees of a purchased entity must be transferred to the purchaser. Employees also retain all of the rights they were entitled to before a transfer. The new employer and the old employer are jointly responsible for the obligations relating to employment relationships with existing employees.

If an employee doesn’t want to work for the new employer, they can terminate their employment contract within two months of the transfer with seven days’ notice. This has the same legal effect as a termination with notice by the employer. Employers can’t terminate employees’ employment due to a transfer of undertakings in Poland.

Informing employee representatives of a planned transfer

When a transfer of undertakings is planned, it is the duty of the new employer to inform the company trade unions of the proposed transfer. They should provide them with the planned transfer date, the reason for the transfer, and the legal, social, and economic effects it will have on employees. If the company isn’t covered by a trade union, the new employer should inform employees about the transfer directly.

Avoid risk and missed opportunities with our end-to-end employment solutions

There are many different ways an employment contract can come to an end. But whatever the situation, you need to understand the rules that cover the end of employment in Poland — or you could end up facing legal issues.

Our solutions ensure your business is protected from risk when a relationship with a worker comes to an end — whatever the reason. We can also help you to avoid missed opportunities by re-deploying talent where possible .

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