termination of employment in Poland: laws & severance policies

Legal Grounds for Termination of Employment in Poland

When it comes to terminating employment in Poland, understanding the legal obligations regarding severance pay and contributions is essential.

The process of termination varies depending on the specific terms outlined in the employment agreement and any existing collective agreements. It is also determined by the type of contract and the underlying reason for the termination. Valid reasons for termination include:

   
• Mutual Agreement: Both employer and employee agree to end the employment relationship.
   
• Termination with Notice: Either party decides to end the employment contract, adhering to the statutory notice periods.
   
• Termination without Notice (Disciplinary Dismissal): Immediate termination due to serious misconduct by the employee.
   
• Expiration of Contract: The employment contract concludes upon reaching its specified end date.

Employment Laws and Severance Policies in Poland

When it comes to terminating employment in Poland, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Notice Period in Poland

In Poland, the notice period for a temporary or permanent employee is dependent on the employee's length of service as below:

   
• Less than 6 months: 2 weeks' notice.
   
• Between 6 months and 3 years: 1 month's notice.
   
• More than 3 years: 3 months' notice.

Employers are obligated to provide written notice, clearly stating the reason for termination and informing the employee of their right to appeal to the Labour Court. In cases of gross misconduct, such as serious breaches of duty or criminal offenses, the employer may terminate the contract without notice.

Severance Pay in Poland

Employees are entitled to severance pay under specific conditions:

‍Applicability: Severance pay is mandatory for employees of companies with at least 20 workers, or for employees who have been dismissed by fault of the employer.

The severance pay is dependent on the employees length of service, as detailed below:

           
• Less than 2 years of service: 1 month's salary.
           
• Between 2 and 8 years of service: 2 months' salary.
           
• More than 8 years of service: 3 months' salary.
       

The maximum severance pay is capped at 15 times the minimum wage applicable on the termination date.

Probation Period in Poland

In Poland, probationary periods are not mandatory but are commonly used to assess a new employee's suitability. The probation period typically lasts up to 3 months, during which either party can terminate the employment with a shorter notice period, usually ranging from 3 days to 2 weeks, depending on the length of the probation. Employers must provide a valid reason for termination during this period and are required to give written notice.

Process for Ending Employment in Poland

   
• Determine the Mode of Termination: Decide whether the termination will be by mutual agreement, with notice, or without notice.
   
• Verify Legal Grounds: Ensure there are justified reasons for termination, especially in cases without notice.
   
• Consult with Trade Unions: If the employee is a trade union member, consult with the union regarding the termination.
   
• Prepare Termination Documents: Draft and sign the necessary termination documents, including the termination notice and employment certificate.
   
• Off-Boarding: Deregister the employee from the Social Security Authority (ZUS) and settle all final payments.

Employee Rights During Termination in Poland

Unfair Dismissal Protections

Unfair dismissal in Poland includes terminations that are unjustified, lack proper notice, or violate employee protections. Employees have the right to appeal against termination to the Labour Court within 21 days. Remedies may include reinstatement to the previous position or compensation ranging from 2 weeks to 3 months' salary, depending on the circumstances.

Grievance Procedures

Grievance procedures are formal processes that allow employees to raise concerns or disputes regarding workplace issues, including termination. These procedures are crucial for resolving conflicts amicably and ensuring fair treatment. Employees can submit a written complaint to their employer, and if unresolved, escalate the matter to the Labour Court.

Final Pay and Benefits

Upon termination, employers are responsible for settling all final payments, including:

   
• Outstanding Wages: Payment for all work performed up to the termination date.
   
• Unused Leave: Compensation for any accrued but unused vacation days.
   
• Bonuses: Any earned bonuses that have not yet been paid.

Final payments should be made by the next regular pay cycle following termination. Employers must also provide an employment certificate and deregister the employee from the Social Security Authority (ZUS).

What Termination Documentation Is Required by Law?

Employers in Poland are legally obligated to provide the following documents upon termination:

   
• Termination Notice: A written notice specifying the reason for termination and informing the employee of their right to appeal.
   
• Employment Certificate: A document summarizing the duration of employment, position held, and reasons for termination.
   
• Final Payslip: A detailed statement of the final payments made to the employee.

These documents should be provided promptly upon termination to ensure compliance with legal requirements.

How to Stay Compliant as An Employer in Poland

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. And if you need to terminate employment, it’s critical to adhere to local compliance laws. That’s the advantage of using a trusted Employer of Record like Playroll. They can:‍

• ‍Handle international compliance: Different countries each have their own federal and local laws governing employee rights. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. 
• ‍Run payroll for your global team: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
• ‍Scale your team anywhere: Legally hire and swiftly onboard new hires in 180+ regions without the need for entity set-up by leveraging Playroll's infrastructure, so you can freely explore new markets and focus on growth.