Amendments to the Polish Labour Code in 2016

In 2016 numerous new provisions of Polish Labour Code came into force. The key changes in the Labour Code in 2016 concern fixed-term employment contracts as well as concluding employment contracts.

Amendments to the regulations introduce new rules of employment based on a fixed-term employment contract. The employer will be able to conclude only three such contracts with an employee for the maximum period of 33 months. Notice periods will also be changed.

Up until now, the limitation was two fixed-term contracts, but with no time limitation. It was possible to conclude one agreement for example for five years, and then another one for another five years. If there was a gap of over one month between the first and the second fixed-term contract with the same employee, the time would be zeroed.

From 2016 there will be no such possibility. The employer may conclude only three fixed-term contracts with one employee, while the total time of the contracts will not be allowed to last more than 33 months. A gap between the contracts will not matter. However, there are exceptions to the rule, e.g. it will not apply in case of replacing another employee, seasonal and casual work, employment in foreign branches and serving a term of office.

The reason for this is that sometimes it is very difficult to predict the time an employee replacement will be needed – in this case the aforementioned rule of 33 months will not apply. The employer will be also able to disobey the rule for other important reasons, but under the requirement to present justification before Regional Labour Inspector.

Amendments will also affect the contracts that are in force at the moment the new provisions come into force. If a contract was concluded for a period of more than six months, it will be subject to the new provisions. For example, if there had been two contracts already concluded with an employee, it would be only possible to conclude one more contract with the person. If the employer concludes a third contract or if their total length exceeds 33 months, by virtue of law such contract will be treated as employment contract for an indefinite period.

The new regulations also introduce changes to the periods of notice in case of terminating fixed-term contracts. From next year, contract termination will be governed by the time the contract is concluded for, not its type. In case of an employment contract concluded for less than six months, the employer will be obligated to terminate it with two weeks’ notice. In case of a contract signed for more than half a year, this will be one month, and in case of employing for at least three years – three months.

This means the employers have to use longer notice periods, the same as for contracts for an indefinite period. However, the amendments do not include requirement to provide reasons for contract termination, which is favourable to the employers. Another important change is elimination of the so called “first day syndrome” among the employers. This means employment contract terms have to be confirmed in writing before the employee is allowed to commence work and not, as previously, on the day the work is started, at the latest.

Current regulations allow the employer to fulfil the paperwork obligations connected with a contract by the end of the first day of work. This enables postponement, and in case of an inspection, explaining that the employee is first day at work and the statutory deadline has not yet passed. In the view of Chief Labour Inspectorate, the so called “fist day syndrome” is in most cases false information that employers use to hire illegally.

The amendments are to prevent such practice and allow employees to fully take advantage of labour rights. It will also be easier for labour inspectors to reveal cases of illegal employment.

The employer and all employees will be under obligation to have an employment contract in writing or written confirmation of contract terms – even before an employee is allowed to commence work. For a lack of written confirmation of contract terms before allowing an employee to work, the employer will face a money penalty.

According to the author of the changes, the Ministry of Family and Labour, the amendments will not completely eliminate the grey market in employment but should make it shrink.