Expand your organization into Poland, with or without a Polish entity
Poland has fast-become an excellent place to do business. Over the last two decades, Poland and its economy have grown dramatically. It has many burgeoning industries, an increasingly well-educated workforce, and a huge amount of opportunity.
If you are interested in expanding to this exciting Central European country, you will first have to navigate its complex and unique business and employment laws. While this is possible to do independently, it can result in significant delays to your expansion, with language barriers, complicated administrative procedures, and more potentially stalling progress.
At Horizons, we work to help businesses from any and all industries expand into Poland. Our professional employer organization (Poland PEO), employer of record, and payroll services can offer you everything you need to start your Polish expansion rapidly, efficiently, and compliantly.
As the only PEO in Poland with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Polish workforce, along with any ongoing HR and compliance work. Our bespoke services can save you thousands in expansion costs and provide you with a faster route into Poland.
Our Poland PEO simplifies your expansion
Horizons enables your business to expand its operations into Poland, without setting up a legal subsidiary.
Employment & Labor Laws in Poland
📝 Employment contracts in Poland
When hiring employees in Poland, it is vital that you write up a formal contract of employment for every employee and submit it to the social security office at least one week before the contract begins.
Contracts should include all relevant details, such as wage/salary, vacation and sick leave, and so on, and should be written in Polish with Polish zloty as the currency.
By partnering with our Poland PEO, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.
⏰ Working hours in Poland
The normal maximum working week in Poland is 40 hours, with no more than eight hours per day. If employees exceed this, they will need to be paid overtime. Overtime rates in Poland are between 150% and 200% of normal pay rate, or the employees can be offered an equal amount of time in future paid leave.
📅 Public holidays in Poland
Employees in Poland receive 13 main public holidays. The following is an expanded list, and not all employers will offer all as paid leave:
New Year’s Day
Three Kings’ Day
All Saints’ Day
St. Stephen’s Day
🏖 Poland vacation leave
The amount of vacation leave in Poland that an employee is entitled to depends on how long they have worked (or been in education) in the country. For less than ten years working, employees are entitled to 20 days of paid vacation. For more than 10 years, the allowance increases to 26 days. Unused vacation leave carries over for up to three years.
😷 Poland sick leave
Employees in Poland can legally take at least 33 days of paid sick leave when they present a valid note from a doctor, with payments covered by their employer for this period. For longer absences the government covers any payments.
👶 Parental leave in Poland
Employees in Poland are entitled to paid parental leave, and payments are covered by the government as opposed to the employer.
The standard amount of leave for the birth of one child is 20 weeks, but this can be as high as 37 weeks in the event of five or more children being born at once. Mothers must use at least 14 weeks after the birth, but can choose to return to work after this period, if they wish, for the father to use the remainder.
Fathers can take two weeks of leave, which must be taken by the time the child reaches two years old.
After this initial leave, parents can take 32 weeks each of parental leave, either separately or at the same time. Beyond this, employees with more than six months of employment can take up to 36 months of unpaid leave, which must be taken before the child turns six.
💰 Terminations and severance in Poland
Contracts of employment can be terminated at any time if agreed by both the employer and employee. Otherwise, notice period must generally be given. For fixed and indefinite-term contracts, the notice period is two weeks when people have been employed for less than six months, one month of notice if they have been employed for between six months and three years, and three months of notice if they have been employed for more than three years.
Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Poland PEO can mitigate risk for foreign companies and provide guidance through this process.
🏦 Taxation in Poland
Employees and employers in Poland must contribute a percentage of salary towards social benefits. These contributions cover things like pension funds, health coverage, workplace accident insurance, and more. Employees usually need to contribute roughly 14% of their salaries, and employers must contribute up to around 18%.
The personal income tax rate in Poland is between 17% and 32%, depending on earnings.
The corporate tax rate in Poland is generally 19%.
🏥 Health coverage in Poland
Healthcare insurance is covered as part of the social benefits contributions paid by both employers and employees. Private health insurance is not necessary, but some employers choose to provide it as part of their benefits packages.
💳 Poland compensations & benefits
Compensation laws in Poland
The minimum wage in Poland is 2,600 PLN per month, but this is set to rise to 3,000 per month in 2021.
Benefit management in Poland
Building a benefits system for your Polish workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. To set it up independently, it can take several weeks and potentially lead to unexpected delays.
Horizons can simplify your Poland benefits management. Our Poland experts can handle everything for you, helping you focus on a successful expansion operation.