Poland Employment Legislation Changes 2024

Businesses in Poland will need to be ready to implement these new regulations for their employees in 2024

In this article, we will delve into the Poland Employment Legislation changes 2024. Let’s understand the key updates and amendments in labour laws that are expected to impact employers across various sectors. We provide insights to help employers understand and prepare for the changes ahead. Join us as we explore what employers need to know to stay compliant and adapt to the evolving regulatory environment in Poland.

Minimum Wage & Salary Updates

Effective January 1, 2024, the minimum wage rose from PLN 3,600 to PLN 4,242. A second adjustment followed on July 1, 2024, bringing the minimum wage up to PLN 4,300.

And the minimum hourly rate was revised as follows:

• From 1 January 2024 – PLN 27.70;
• From 1 July 2024 – PLN 28.10.

Although this mid-year increase wasn’t as dramatic as in 2023, it still represents a notable rise. By July 1, 2024, the minimum wage had increased by PLN 700 from the PLN 3,600 level of July 1, 2023, reflecting a 19.4% growth.

For individuals working under civil law contracts, the minimum hourly rate rose to PLN 27.70 starting January 1, 2024. This marks a PLN 4.90 increase compared to the rate in effect from January 1, 2023, which is a 21.5% rise.

From July 1, 2024, the hourly rate further increased to PLN 28.10, a PLN 4.60 rise from the rate of July 1, 2023, translating to a 19.5% increase.

The new minimum wage rates for 2024 do not only affect base salaries but also various employee benefits that are tied to the minimum wage.

These include:

• Night shift pay
• Compensation for idle time
• Maximum severance pay for dismissals not attributable to the employee
• Compensation for breaches of equal treatment in employment or for workplace harassment
• Basis for calculating social insurance benefits related to sickness and maternity
• Amount exempt from salary deductions

Moreover, these rates also apply to civil contracts, such as contracts of mandate.

Additionally, the projected average monthly gross salary for 2024 in the national economy is set to reach PLN 7,824. This figure will impact the calculation of pension and disability insurance contributions, voluntary sickness insurance, and the amount allocated to the Company Social Benefits Fund.

The annual cap for pension and disability insurance contributions for 2024 will be PLN 234,720.

Holiday Pay

Companies employing fewer than 50 full-time equivalents as of January 1, 2024, are required to provide holiday benefits. However, they may have chosen to waive this obligation or reduce the amount by informing their employees in writing by January 31, 2024.

The holiday benefit for 2024 is set at PLN 1,914.34 gross. This allowance is issued once annually to employees who take a holiday of at least 14 consecutive calendar days.

New Occupational Health and Safety (OHS) Requirements for Screen Workstations

By May 17, 2024, employers must be in compliance with updated OHS regulations for workstations equipped with screen monitors. Employees using laptops or tablets for at least half of their working day must be provided with:

• A desktop monitor or stand to ensure the screen’s top edge is at eye level.
• An additional keyboard and mouse.
• Employers must also supply optional equipment, such as a docking station, printer, scanner, document holder, or footrest, if requested by employees.
• Additionally, a suitable chair and table, compliant with the parameters outlined in the regulation, remain mandatory.

The updated OHS regulations, detailed in the appendix to the Minister of Labor and Social Policy’s regulation, modify the minimum ergonomic and safety requirements.

Key elements include:

• Preventing excessive strain on employees’ musculoskeletal systems or vision.
• Adjusting technical parameters and monitor settings to meet the regulation’s standards.
• Providing a separate, matte-finish keyboard with clearly visible characters, along with an additional mouse.
• Ensuring work surfaces and seating are designed for ergonomic comfort, including adjustable chairs with easy-to-use mechanisms.
• Adequate lighting for the type of work being performed.
• Optional footrests and adjustable document holders, upon employee request.

Employers must also supply corrective eyeglasses or contact lenses if recommended by an ophthalmologist. This requirement is a mandatory OHS component and not an additional benefit.

For remote employees, there is no obligation to provide additional workstation elements such as chairs or tables. Employers are only required to supply necessary work tools (e.g., laptop, monitor, software). However, employers may choose to offer or reimburse remote employees for ergonomic equipment, in line with internal policies.

Employers are required to:

• Ensure all screen-equipped workstations meet the new standards by mid-May 2024.
• Comply with medical recommendations and cover the cost of both eyeglasses and contact lenses.
• Inform remote employees about the need to adjust their workstations to comply with the new OHS requirements.
• Consider offering support to remote employees for necessary equipment upgrades, and update remote work declarations to reflect these new requirements.

More Legal Protection for Employees

Special Termination Safeguards During Legal Disputes

For employees entitled to special protection against dismissal (e.g., pregnant employees, employees with parental rights, trade union representatives, or those nearing retirement age) who challenge a dismissal or seek reinstatement, the labor court can order the continuation of their employment until a final judgment is reached. This protection will be granted upon the employee’s request if the claim is deemed plausible, and the court can only deny it if the claim is clearly without merit.

Employer Obligations:

• Ensure compliance with restrictions on terminating contracts for employees under special protection (except for cases of termination due to the employee’s fault or mutual agreement).

• Exercise caution and provide sufficient justification when altering work conditions or salaries for employees covered by these protections.

Obligation to Continue Employment Until a Final Judgment in Case of Unlawful Termination or Reinstatement

If a labor court rules that a termination is invalid or orders reinstatement of an employee, it will also require the employer to continue employing the individual until the dispute is fully resolved. This new provision strengthens the employee’s position, particularly when the employer appeals the judgment.

Employer Obligations:

• Ensure precise and clear reasons for any termination of employment.
• Consider the increased importance of negotiating termination agreements.
• Be open to settlement discussions in employment disputes to avoid prolonged legal battles.

Reduced Court Fees for Employees in Labor Law Cases

Since late September 2023, labor law cases have become less expensive for employees. Workers are no longer required to pay court fees for filing claims in labor courts, even if their claim exceeds PLN 50,000. Previously, claims above this threshold were subject to standard court fees. Now, fees apply only to appeals, complaints, cassation complaints, or motions to overturn a final decision, and only when the amount in dispute surpasses PLN 50,000. In such cases, the fee is calculated on the amount exceeding this threshold.

The elimination of court fees for initial labor law claims is expected to encourage more employees to pursue legal action, leading to a potential increase in cases before labor courts. This could result in heavier caseloads and longer resolution times for employers. Additionally, it might lead to a rise in unfounded or exaggerated claims, particularly concerning terminations and overtime disputes. Employers should anticipate this and may need to offer more favorable termination agreements to avoid litigation.

Employer Obligations:

• Clearly define the reasons for terminating employment contracts.

• Be prepared for longer negotiations with employees and consider reaching conciliatory solutions in conflict situations.

• Understand that employees may be more inclined to take legal action, making mutual termination agreements on favorable terms more essential than unilateral terminations.

Whistleblower Protection Act

The Act on the Protection of Whistleblowers was passed on June 14, 2024, and officially published on June 24, 2024. It enforces the EU Directive on whistleblowing (2019/1937).

Employers with at least 50 employees as of July 1 or January 1, or those in specific categories irrespective of headcount, must establish or update their whistleblowing mechanisms. This includes:

• Implementing an internal whistleblowing policy.
• Consulting trade unions or employee representatives on the policy.
• Setting up or revising reporting channels.
• Appointing a designated person or unit to handle whistleblower reports.
• Keeping a register of whistleblower reports—all in accordance with the new legal requirements.

Deadline

Employers are required to meet these obligations by September 25, 2024.

Types of Reportable Violations

Reportable offenses under the whistleblower framework involve unlawful acts or omissions, or attempts to evade laws within specific areas such as:

• Corruption.
• Public procurement.
• Financial services, products, and markets.
• Prevention of money laundering and terrorist financing.
• Product safety and compliance.
• Transportation safety.
• Environmental protection.
• Radiation and nuclear safety.
• Food and feed safety.
• Animal health and welfare.
• Public health.
• Consumer protection.
• Privacy and data protection.
• Network and information security.
• The financial interests of the State Treasury, local government, or the EU.
• The EU’s internal market.
• Human and citizen constitutional rights.

Notably, violations related to employment law are excluded from the whistleblower system (this change was made at the last stage of drafting the act). However, employers may voluntarily extend reportable areas to include breaches of internal policies, such as ethical standards, as long as they align with legal requirements.

Who Qualifies as a Whistleblower?

Anyone who reports or publicly discloses information about legal violations obtained in a work-related setting can be considered a protected whistleblower, provided they reasonably believe the report is accurate and concerns one of the designated areas mentioned above. This may include current or former employees, job applicants, or workers hired through contractors.

Whistleblower Protections

Retaliation against whistleblowers, as well as threats or attempts to retaliate, are prohibited. Any adverse action taken in a work context that infringes on the whistleblower’s rights or causes unjustified harm is deemed retaliation unless the employer can demonstrate objective reasons for the action. Examples of retaliation include refusal to hire, termination, pay reduction, demotion, denial of promotion, negative performance reviews, among others. If retaliation occurs, the whistleblower is entitled to compensation.

Penalties for Non-Compliance

Penalties for violations of whistleblower protection regulations include fines, restricted liberty, or imprisonment for up to three years for those representing the employer. Specific infractions include:

• Failure to establish or properly implement a whistleblowing policy.
• Obstructing a whistleblower report.
• Retaliation against a whistleblower.
• Breaching confidentiality of the whistleblower’s identity.
• Whistleblowers themselves may face penalties if they file reports in bad faith.

Key Considerations for Employers

• Reporting Methods: Employers must decide whether reports will be handled internally or through an external entity.
• Channels for Reporting: Reporting mechanisms should allow for both oral and written reports, including the option for a face-to-face meeting.
• Investigation: Employers need to determine who will handle local investigations, whether an internal unit or an appointed person.
• Confidentiality: The whistleblower’s identity and details of the report must be kept confidential, with access limited to those who are legally justified.
• Register Maintenance: Employers are responsible for maintaining a register of whistleblower reports and ensuring timely data deletion when required.

These changes will require employers to carefully review their internal procedures and adjust their whistleblower policies accordingly.

Major Revisions to Foreigners' Employment Regulations

The upcoming Act on Foreigners’ Access to the Labour Market, set to take effect on January 1, 2025, introduces substantial changes to the employment of foreign workers in Poland. Among the most debated changes is the requirement that a foreign worker can only be employed under an employment contract, either through the issuance of a work permit or the registration of a declaration to entrust work. This new regulation will prohibit hiring foreigners under more flexible civil law contracts (such as contracts of mandate or contracts for specific work), which offer less protection compared to employment contracts

According to the draft law’s justification: “Mandating employment contracts for foreigners working in Poland will enhance their pay, working conditions, and act as an incentive for them to work in Poland.” An employment contract ensures greater job security and a wider range of social benefits compared to civil law contracts. However, employers have voiced concerns that the new rules may drive an increase in the employment of foreigners in the informal economy.

Other provisions of the draft law include fully electronic processing of work permit applications, the removal of the “labour market test” (which checks if there are available Polish workers for the role), and higher penalties for illegal employment of foreigners. Additionally, local authorities will have the power to establish lists of professions and job types for which work permits cannot be issued if the local job market deteriorates.

This new legislation will mark Poland’s first legal framework solely dedicated to regulating the employment of foreigners, as current regulations are part of the 2004 Act on the Promotion of Employment and Labour Market Institutions.

National Labour Inspectorate (PIP) Audits in 2024

The National Labour Inspectorate (PIP) is set to conduct 60,000 audits in 2024, concluding its three-year Action Programme for 2022-2024. Key priorities include inspections in the construction sector, chemical hazard control, and enhanced supervision of workplaces. New areas of focus will include compliance with labor laws regarding working time, annual leave, and the company social benefits fund. Audits will also expand to industries like renewable energy, solid fuel power plants, and the scrap metal sector.

PIP will continue to review workplaces with special working conditions and focus on compliance with recent updates to the Labor Code, particularly in relation to employee rights in parenthood, employment relationships, and remote work. Investigating workplace accidents and addressing employee complaints, especially regarding delayed or underpaid wages, will remain a high priority.

Employers in Poland should be aware that PIP audits can be conducted without prior notice, though inspectors may provide advance notification depending on the investigation’s objectives.

The best course of action is to familiarize yourself with the Act on the National Labour Inspectorate or seek legal advice to understand employer rights and responsibilities during audits.

ESG Reporting and Labour Law

Starting in 2024, compliance with Environmental, Social, and Governance (ESG) reporting requirements has become mandatory. Organizations should begin preparing for the labor-related aspects of non-financial reporting. This includes ensuring a safe, ethical work environment and documenting these efforts.

Large companies, particularly public-interest entities like banks and insurers, will be required to file ESG reports for 2024 if they employ at least 500 people and meet financial criteria. By 2025, entities employing 250 or more people or meeting other financial benchmarks will also need to report. In 2026, small and medium-sized enterprises listed on regulated markets will be subject to similar requirements.

Key labor-related factors for ESG reporting include:

• Valuing employees and providing a good working environment.
• Complying with international labor standards.
• Maintaining a stable employment structure.
• Respecting employee rights, including freedom of association and collective bargaining.
• Organizations should also focus on policies related to diversity, employment, work-life balance, and reintegration. Monitoring metrics such as the equal pay index, labor turnover, and occupational health and safety will be essential.

From a labor law perspective, it’s important to establish an ethical work environment, with codes of conduct, anti-corruption policies, and whistleblowing mechanisms, which will become mandatory once whistleblower legislation is in place.

Changes in Employment Regulations for Adolescent Workers

Beginning with the new school year in 2024, several updates have been made regarding the employment of adolescent workers. These changes stem from an increase in the wage ratios that form the basis for calculating adolescent workers’ remuneration, effective from September 1, 2023:

• For first-year students or those in the first class of a vocational school who are continuing theoretical training, the minimum wage is now PLN 560.46 (representing at least 8% of the average monthly wage in the preceding quarter, previously set at a minimum of 5%).

• For second-year students or those in the second class of a vocational school under the same conditions, the wage has increased to PLN 630.52 (not less than 9% of the average monthly wage in the previous quarter, previously at 6%).

• For third-year students or those in the third class of a vocational school, the minimum wage is PLN 700.58 (at least 10% of the average monthly wage, previously set at 7%).

It is important to note that these increases apply to all adolescent workers, including those employed before September 1, 2023.

Additionally, updates have been made to the regulation regarding work prohibited for adolescent workers, which may require companies to review and amend their internal policies, such as work regulations.

How Beyond Borders HR Can Help You

These 2024 employment legislation changes for Poland can be challenging for employers to process independently. Beyond Borders HR, a global HR consulting firm, stands ready to assist businesses in understanding and implementing these changes effectively. With our extensive expertise in global HR practices, we ensure that your organization stays compliant with the evolving regulatory landscape. Reach out to Beyond Borders HR for tailored solutions, expert guidance, and seamless integration of these legislative updates into your HR policies and practices. Our team is dedicated to empowering your business with the knowledge and support needed to thrive in this dynamic regulatory environment.