Employer of Record in Poland

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Poland if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Poland below, to avoid any compliance issues.

Employment Contract Requirements

Polish labor law classifies contracts as indefinite, extendable fixed-term (up to 33 months), and probationary (up to three months). Employment contracts must be in writing and include, at a minimum, the following information for legal validity:

• Identification of both parties
• Type of contract
• Date of contract commencement and date of its conclusion (and employment duration for temporary contracts)
• Workplace and type of work
• Base salary as well as other compensation or benefits
• Working hours and annual leave

Onboarding Process

We can help you get a new employee started in Poland quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Employers in Poland must adhere to labor laws that establish standard working hours at 8 hours per day and an average of 40 hours per week. The total working time, including overtime, cannot exceed 48 hours per week on average over the applicable reference period. Employees are entitled to mandatory daily rest of 11 hours and weekly rest of at least 35 consecutive hours to promote work-life balance. While some industries, such as healthcare and transportation, operate under different regulations, the general framework ensures fair working conditions for employees. Managerial staff may be exempt from standard working hour limitations but could be entitled to compensation for work on Sundays or public holidays.

Overtime work in Poland is strictly regulated, with a standard cap of 150 hours per year unless otherwise specified in collective agreements. Employers must compensate overtime at an additional rate – 100% for work performed at night, on Sundays, and public holidays, and 50% for overtime on regular working days. Alternatively, employees may opt for time off in lieu of overtime pay. Failure to comply with these regulations can result in penalties, including fines and legal sanctions. Ensuring compliance with these laws is essential for maintaining a positive workplace environment and avoiding legal repercussions.

As of January 1, 2025, Poland's minimum wage has increased to 4,666 PLN per month and 30.50 PLN per hour.

This adjustment reflects the government's response to economic conditions, particularly inflation, to maintain workers' purchasing power. The minimum wage applies uniformly across all employment categories, including full-time, part-time, interns, trainees, and expatriates, ensuring fair compensation for all workers in the country. Employers must adhere to these regulations to remain compliant with labor laws and avoid potential penalties.

The Polish government conducts annual reviews of the minimum wage, with adjustments influenced by economic indicators such as inflation, employment rates, and overall cost of living. While the minimum wage is standardized nationwide, industries with high demand for specialized skills often offer salaries above the legal minimum. Additionally, Poland is aligning its wage policies with EU directives to enhance employee protections and ensure a fair standard of living. Employers must stay informed on legislative updates to maintain compliance and support their workforce effectively.

Employment laws in Poland can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.

This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.

Employers in Poland must navigate various payroll taxes, including income tax withholding, social security contributions, and health insurance levies. Understanding the calculation methods, submission procedures, and due dates is essential for compliance. For 2025, Poland's income tax system features progressive rates of 12% up to PLN 120,000 and 32% for higher earnings.

Monthly payroll tax payments are typically due by the 20th day of the month following payment. Annual tax returns must be filed by April 30th of the following year, with corporate tax returns due by the end of the third month following the tax year. Leveraging payroll management software can simplify these tasks, ensuring that businesses meet their obligations and maintain accuracy.

When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In Poland, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.

Key Ways an EOR Supports Payroll in Poland:

• Rapid Payroll Setup: Onboards employees quickly with ready-to-go infrastructure.
• End Administration: Handles salary, tax, and benefits with no extra internal resources.
• Vendor Simplicity: Consolidates payroll across countries for centralized oversight.
• No Entity Required: Operates legally, saving your business the time and resources needed for local incorporation.

In Poland, work permits and visas are essential for employers hiring foreign workers from outside the European Union, EEA, or Switzerland. The process involves obtaining a Type A, B, C, D, or E work permit depending on the nature of employment. Type A permits are the most common for foreigners directly employed by Polish companies and are valid for up to 3 years.

Type C permits apply to intra-company transfers when a foreign employer assigns a worker to their branch in Poland. Type E covers employment situations not specified under Types A through D. Employers must submit an application, provide supporting documentation, and until May 31, 2025, in some cases, pass a labor market test to prove no local candidates are available. As of June 1, 2025, the labor market test requirement has been eliminated. Once the work permit is approved, employees can apply for a National Work Visa (D-Type) or a Schengen Visa (C-Type) to legally enter and stay in Poland.

The D-type national visa permits stays for more than 90 days but not longer than one year, and also allows travel in other Schengen Area countries for up to 90 days in a 180-day period. Compliance with immigration regulations, proper documentation, and timely renewals ensure a smooth process for hiring international employees.

Poland's leave policies are structured to support work-life balance while ensuring compliance with labor regulations.

Annual leave:

• 20 days for employees with less than 10 years of service
• 26 days for employees with 10 or more years of service
• Unused leave can carry over until September 30th of the following year

Other types of leave:

• Sick leave (with medical certificate required)
• Maternity and paternity leave
• Parental leave
• Force majeure leave
• Unpaid leave, carers' leave, and emergency leave

Public holidays total 14 days per year, separate from annual leave entitlements.

Employers must comply with documentation requirements, such as medical certificates for sick leave, and ensure adherence to labor laws. Implementing clear leave policies, maintaining accurate records, and communicating entitlements effectively are key best practices for businesses operating in Poland.

In Poland, employers are required to provide essential employee benefits, including social security contributions, health insurance, pension contributions, paid annual leave,and workplace injury benefits.These mandatory benefits ensure financial security, healthcare access, and legal protection for employees. Additionally, employers often enhance their compensation packages with supplemental benefits such as private health insurance, additional retirement plans, flexible work arrangements, and professional development allowances.

While these supplemental perks are not legally required, they help attract and retain talent in a competitive job market. Compliance with Polish labor laws, particularly regulations set by the Social Insurance Institution (ZUS), is crucial to avoid legal penalties and ensure employee well-being.

For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In Poland, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.

Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in Poland without building complex infrastructure or worrying about compliance missteps.

In Poland, employment termination is governed by strict labor laws to ensure fairness and compliance. Employers can terminate employment through mutual agreement, with notice, or without notice in cases of serious misconduct. Notice periods vary based on the employee's tenure, ranging from 2 weeks for those employed for less than 6 months to 3 months for employees with over 3 years of service. Employers must provide a written notice of termination, specifying the reason and informing the employee of their right to appeal. In cases of collective redundancies, employers are required to consult with trade unions and adhere to legal thresholds before proceeding.

Severance pay is mandatory for employees working in companies with at least 20 workers, with compensation based on tenure—ranging from 1 to 3 months' salary. The maximum severance amount is capped at 15 times the national minimum wage. Employers must also ensure that final payments, including outstanding wages and unused leave compensation, are settled promptly. Employees who believe they have been unfairly dismissed can challenge the decision in the Labour Court, which may result in reinstatement or financial compensation. Following due process, including proper documentation and final settlements, is crucial for compliance with Polish labor laws.