Types of Employment Contracts in Poland: A Guide for Employees
Employment is not just a way to earn money; it’s also an important part of our lives that influences our sense of security and stability. In Poland, there are various forms of employment that differ not only formally but also in terms of the rights and obligations of both the employee and the employer. Choosing the right contract can be crucial for your career, so it’s worth understanding the available options thoroughly. In this guide, we will introduce you to the most important types of employment contracts in Poland, their specifics, and the consequences of choosing each one.
Table of Contents
- Employment Contract for an Indefinite Period
- Employment Contract for a Definite Period
- Contract of Mandate (Umowa zlecenie)
- Contract for Specific Work (Umowa o dzieło)
- Comparison of Employment Forms
- Procedures for Concluding and Terminating Contracts
- Employee Rights Under the Labor Code
- How to Choose the Right Form of Employment
Article Outline
- Employment Contract for an Indefinite Period: Discuss the characteristics, advantages, and disadvantages of this form of employment, as well as its impact on job stability.
- Employment Contract for a Definite Period: Analyze situations where this contract is most commonly used, its limitations, and possibilities for extension.
- Contract of Mandate: Explain the specifics of this contract, its flexibility, and implications for social insurance and taxes.
- Contract for Specific Work: Describe the nature of this contract, its practical applications, and differences compared to the contract of mandate.
- Comparison of Employment Forms: Provide a table or summary of the main differences between each contract to facilitate the choice of the appropriate form.
- Procedures for Concluding and Terminating Contracts: Offer practical tips on the formalities related to signing and ending contracts.
- Employee Rights Under the Labor Code: Discuss the basic rights entitled to employees depending on the type of contract.
- How to Choose the Right Form of Employment: Provide advice and recommendations to help readers make an informed decision.
Employment Contract for an Indefinite Period
An employment contract for an indefinite period is the most stable form of employment available in the Polish labor market. For many employees, it is synonymous with security and certainty about the future. Entering into such a contract means that the employment relationship is not limited by any end date, allowing the employee to plan their career and private life in the long term.
Characteristics and Advantages
A contract for an indefinite period guarantees full employee rights under the Labor Code. The employee is assured continuity of employment, which translates into financial stability and the ability to enjoy full social benefits such as paid vacation leave, sick leave, or maternity and paternity leave. Moreover, terminating such a contract by the employer requires justification and adherence to specified notice periods, providing additional protection against sudden job loss.
Employment based on an indefinite contract brings numerous benefits. It gives the employee a sense of job stability, which is extremely important in future planning, both financially and personally. When an employer opts for this form of contract, they invest in the employee’s development, often associated with opportunities for promotion or skill enhancement.
However, it’s worth remembering that an indefinite contract also comes with certain obligations. The employee is required to perform work according to agreed conditions, and terminating the contract on their own initiative requires adherence to a notice period. For some people, this may limit flexibility in changing jobs or taking on new professional challenges.
Employment Contract for a Definite Period
A contract for a definite period is a form of employment where the duration of the contract is predetermined. This form is often used by employers in situations where they need to hire an employee for a specific project, replacement, or during periods of increased workload. For employees, it can be a way to gain professional experience or enter the job market.
Characteristics and Application
A definite period contract grants the employee rights similar to those arising from an indefinite contract, except for matters related to contract termination. Upon the expiration of the term specified in the contract, the employment relationship automatically ends without the need for a notice. However, there are legal limitations regarding the number and total duration of such contracts between the same parties.
Employment for a definite period can be beneficial for both parties. The employer gains the ability to adjust the number of employees flexibly according to current needs, and the employee has the opportunity to gain experience and prove themselves in a new environment. It’s important to note legal restrictions. According to the Labor Code, the third consecutive definite period contract between the same employee and employer automatically transforms into an indefinite contract, as does exceeding a total of 33 months of employment on fixed-term contracts.
For the employee, it’s important to approach the signing of subsequent definite period contracts consciously and know their rights. Although this form of employment may seem less stable, it often serves as the first step towards establishing a long-term cooperation with the employer.
Contract of Mandate (Umowa zlecenie)
A contract of mandate is a civil-law contract regulated by the Civil Code rather than the Labor Code. It is a form of employment that provides greater flexibility for both parties but comes with less employee protection. This contract is often used when the work is casual or doesn’t require constant employer supervision.
Specifics and Benefits
A contract of mandate involves committing to perform a specific task for the principal (employer). The worker (contractor) is not subordinated to the employer to the same extent as in an employment contract, giving them greater freedom in organizing their work time. For the employer, this means lower financial burdens related to social insurance and taxes.
This contract is attractive for individuals who value flexibility and independence. The contractor can decide on the method and time of executing the mandate, allowing them to combine several contracts simultaneously or balance work with other responsibilities. In the case of a contract of mandate, regulations concerning minimum wage or working time norms do not apply, which can be both an advantage and a disadvantage.
However, it’s important to remember that a contract of mandate does not provide the same protection as an employment contract. The contractor is not entitled to paid leave, and in case of illness, they are not eligible for sick pay unless they voluntarily pay the sickness insurance contribution. Additionally, since January 1, 2021, contracts of mandate are subject to mandatory social insurance contributions, reducing the cost differences between a contract of mandate and an employment contract.
Contract for Specific Work (Umowa o dzieło)
A contract for specific work is another civil-law contract that differs from a contract of mandate primarily in the subject matter of the agreement. In a contract for specific work, the contractor commits to delivering a specific result, which is the product of their work. This form is often chosen when commissioning creative tasks such as writing a book, creating a graphic design, or producing an art installation.
Characteristics and Application
A contract for specific work focuses on achieving a concrete result rather than the work process itself. The contractor is responsible for defects in the work and is obliged to rectify them or provide appropriate compensation. For the employer, a contract for specific work is financially advantageous because it is not subject to social or health insurance contributions.
Choosing a contract for specific work can be beneficial for individuals who specialize in certain fields and can deliver a specific product or service. The contractor has significant freedom in organizing their work and is not bound by location or working hours. For the employer, it’s a way to assign a one-time task without engaging in a long-term employment relationship.
However, one should be aware of the risks associated with this form of contract. The lack of social insurance contributions means that the contractor does not save for retirement and is not covered by health insurance under this employment. Moreover, control authorities increasingly question the legitimacy of using contracts for specific work in situations where the nature of the work resembles employment under an employment contract or contract of mandate, which may result in the need to pay overdue contributions.
Comparison of Employment Forms
Choosing the appropriate form of employment depends on many factors such as the nature of the work, financial expectations, and the need for stability or flexibility. Below, we present a comparison of the most important features of each contract to help you make an informed decision.
Comparison Table
| Feature | Employment Contract for an Indefinite Period | Employment Contract for a Definite Period | Contract of Mandate | Contract for Specific Work |
|---|---|---|---|---|
| Legal Regulation | Labor Code | Labor Code | Civil Code | Civil Code |
| Employment Stability | High | Medium | Low | Low |
| Employee Rights | Full | Full | Limited | None |
| Social Insurance Contributions (ZUS) | Yes | Yes | Yes | No |
| Right to Leave | Yes | Yes | No | No |
| Protection Against Dismissal | High | Medium | Low | Low |
| Work Time Flexibility | Low | Low | High | High |
| Overtime Pay | Yes | Yes | No | No |
Procedures for Concluding and Terminating Contracts
The process of concluding and terminating contracts varies depending on their type. Knowing these procedures is crucial for safeguarding your rights and avoiding potential conflicts with the employer.
Concluding Contracts
- Employment Contract: Should be in writing before allowing the employee to work. It must include elements such as the type of work, place of performance, remuneration, working hours, and the start date.
- Civil-Law Contracts: A written form is not required but recommended for evidence purposes. The contract should precisely define the scope of tasks, remuneration, and completion date.
Terminating Contracts
- Employment Contract for an Indefinite Period: Can be terminated with notice (the notice period depends on the length of service) or without notice due to the fault of the employee or employer.
- Employment Contract for a Definite Period: Ends upon the expiration of the term or can be terminated under certain conditions.
- Contract of Mandate and Contract for Specific Work: Can be terminated according to the terms specified in the contract or in accordance with the Civil Code. The parties have greater freedom in shaping these provisions.
Employee Rights Under the Labor Code
The Labor Code guarantees a range of rights for employees employed under an employment contract. These include, among others:
- Remuneration not lower than the minimum wage.
- Paid vacation leave.
- Safe and hygienic working conditions.
- Social and health insurance.
- Protection against unjustified dismissal.
In the case of civil-law contracts, these rights do not apply, meaning the worker is deprived of many privileges and safeguards.
How to Choose the Right Form of Employment
Choosing the form of employment should be a conscious decision based on an analysis of your own needs and expectations. Here are some factors to consider:
- Employment Stability: If you value certainty and long-term employment, an indefinite employment contract will be the best choice.
- Flexibility: If you appreciate freedom in organizing your work time, consider a contract of mandate or contract for specific work.
- Employee Rights: If social benefits and legal protection are important to you, an employment contract will provide the most benefits.
- Nature of Work: For project-based or creative work, a contract for specific work may be most appropriate.
- Costs and Taxes: Be mindful of the differences in social insurance contributions and taxation of each contract.
Summary
Understanding the various forms of employment available in Poland is crucial for consciously planning your professional career. Each of the discussed contracts has its advantages and disadvantages, and choosing the right one depends on individual needs and life situations. An employment contract for an indefinite period offers the greatest stability and full employee rights, while civil-law contracts provide greater flexibility but less protection. Before making a decision, it’s worth thoroughly analyzing your priorities and consulting an expert or lawyer.