What Severance Pay Rules Must Employers Follow in Poland?

Which Employees Qualify for Severance Pay?

• Employees dismissed for reasons not attributable to them (economic or organizational) by an employer with at least 20 employees.
• Employees whose employment is terminated by notice, mutual agreement initiated by the employer, or without notice for objective, non-disciplinary reasons.
• Employees with at least one day of employment under an employment contract (fixed-term or indefinite) with the dismissing employer.
• Employees who are not covered by separate, more favorable collective redundancy or social package arrangements for severance.
• Employees who do not already receive equivalent statutory severance for the same termination basis under another specific statute.
• Employees whose termination is genuine and not a sham designed to avoid severance obligations.

What Are the Legal Timelines for Paying Severance?

In Poland, severance linked to redundancies should be paid no later than the regular payday for the period in which the employment relationship ends. In practice, many employers pay it together with the final salary and unused holiday payout on or shortly after the termination date. You should clearly document the severance amount and payment date in the termination documentation and final payslip. Delays can trigger statutory interest and potential claims for breach of employment obligations. To stay safe, your company should treat severance as due immediately upon termination becoming effective and avoid any staged or conditional payments unless clearly allowed by law.

What Penalties Apply if Severance Is Not Paid Correctly?

If your company fails to pay severance correctly in Poland, you risk financial, administrative, and reputational consequences. Employees can challenge the termination, claim unpaid amounts, and seek court intervention. Labour inspectors may also investigate your practices, especially in larger redundancy programs, and impose fines for non-compliance.

• Employees can file court claims for unpaid severance and correction of the termination, including reinstatement or additional compensation.
• Courts can award the outstanding severance plus statutory interest for late payment.
• Labour inspectors may impose fines on the employer for breaches of employee rights and record-keeping duties.
• Non-compliance can complicate future collective redundancies and trigger closer regulatory scrutiny.
• Reputational damage can affect hiring, union relations, and negotiations with works councils.

Does Outsourcing Employment via an EOR Change Severance Liability?

Using an Employer of Record (EOR) such as https://www.playroll.com/employer-of-record does not remove the need to comply with Polish severance rules, but it can shift who is the formal employer responsible for payment. In a compliant EOR model, the EOR is the legal employer in Poland and must apply the Labour Code and redundancy statute when terminating. However, your company, as the client, typically decides on the business reasons for termination and may be contractually obliged to fund all severance costs. Courts and authorities can look beyond the contract if the EOR is a façade and your company effectively acts as the real employer. You should ensure your EOR contract clearly allocates severance liability, funding, and decision-making in line with Polish law.

Be 100 Percent Compliant in Offering Severance with Playroll

Polish severance rules can feel technical, especially when you are juggling thresholds for economic dismissals, length-of-service bands, and caps. Playroll helps your team translate the Labour Code and redundancy statute into clear, actionable steps for each termination. You get local guidance on whether severance is triggered, how to calculate it safely, and how to document the decision so it stands up to scrutiny.

With Playroll, you can also standardize your global offboarding process while respecting Polish specifics, like timing of payments and interaction with notice periods. Our platform and in-country experts help you budget for severance, avoid misclassifying dismissals, and coordinate with any Employer of Record setup so that no one is surprised by last-minute costs or claims.