Ideas For A New Labour Code Met With Criticism

The Codification Committee, a government body entrusted with the task of preparing a first draft of an entirely new Labour Code, the regulation which affects all employers and employees in Poland, finished its work this week. Even though the project is the first step to introducing a whole new labour code, the Committee did not disclose the results of their year-long work. The public has to wait for state officials to share their ideas a little longer, and it is not clear how long.

However, even though the whole report has not been made public yet, the media received numerous leaks, rumors, and glances into the new regulation. Polish journalists learned the general concepts and some of the ideas that the lawmakers worked on. The reaction to this information is far from ecstatic.

The Codification Committee projects a complete overhaul of the present system of employment contracts. It appears the government wants employers to move away from civil law agreements between company owners and their employees. The agreement for the performance of a specific task (umowa o dzieło) and mandate agreement (umowa zlecenie) are to be done away with completely. Emphasis will be put on employment agreements for non-fixed terms. This means labour code regulations in Poland will become less flexible.

Some of the other proposals for Labour Code may include:

• Limiting the possibility of moonlighting,
• A new type of employment contract: seasonal employment agreement,
• Increasing the maximum length of trial period employment to six months,
• Limiting the maximum period of a fixed-term agreement to 18 months,
• Obligation to justify termination of employment agreement for non-fixed term.

The project of the new Labour Code, which is very likely to change during the legislative process, has been moved to the Ministry of Family, Labour and Social Policy.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our company formation in Poland, or contact us for a free consultation.