Employment contracts play a crucial role in defining the employer-employee relationship in Poland. The Labour Code outlines the specific legal requirements that these contracts must meet. This blog explains the essential elements needed for a valid employment contract and whether Polish law requires a written form.
Essential Elements for a Valid Employment Contract
To ensure a contract is valid, both employers and employees must follow the rules set out in the Labour Code. These elements help establish a clear and legally binding agreement.
1. Both Parties Must Agree
Both the employer and the employee must willingly accept the contract terms. Neither party should feel coerced or pressured into the agreement.
2. Define Employment Terms Clearly
The contract must outline specific details, including:
- Type of Contract: State whether the agreement is permanent, fixed-term, or probationary.
- Job Responsibilities: Clearly describe the employee’s duties.
- Workplace or workplaces Location: Specify where the employee will work.
- Salary Details: Include the payment amount, frequency, and any additional benefits.
- Working Hours: Define the work schedule and conditions.
- Starting date of work.
- In the case of a probationary employment contract:
a) duration or end date of the contract, and, if agreed by the parties, a provision extending the contract by the time of leave and any other justified employee absences, if such absences occur;
b) the period for which the parties intend to conclude a fixed-term employment contract as referred to in Article 25 § 22, as well as a provision extending the contract in the case referred to in Article 25 § 23;
- In the case of a fixed-term employment contract – its duration or end date.
3. Follow Labour Laws
Ensure the contract complies with Polish labour regulations. For example, the salary must meet or exceed the minimum wage.
4. Sign and Document the Agreement
While verbal agreements are legally binding, having a signed document is critical to protect both parties and clarify the terms.
Does an Employment Contract Require Written Form?
Polish labour law provides clear guidance on how to formalise employment contracts. While verbal agreements are allowed, written contracts offer more benefits and are legally required in specific situations.
Legal Obligations
If the employment contract has not been concluded in writing, the employer shall confirm to the employee in writing the arrangements regarding the parties to the contract:
- The type of contract
- Terms of employment, such as job duties, salary, workplace location, and working hours.
- It’s terms before admitting the employee to work.
Advantages of Written Contracts
Although verbal contracts are valid, written agreements ensure:
- Clarity: They remove ambiguity and ensure both parties understand their rights and responsibilities.
- Evidence: They provide proof of the agreed terms in case of a dispute.
- Compliance: Employers avoid penalties by documenting the agreement.
What Happens When Employers Don’t Comply?
Employers who fail to provide written confirmation may face financial penalties from the State Labour Inspectorate. They may also risk damaging their reputation and facing legal challenges.
Practical Tips for Employers and Employees
For Employers:
- Draft a written contract before the employee starts work.
- Ensure the agreement includes all mandatory details and follows the Labour Code.
- Provide the employee with a copy and keep one for your records.
For Employees:
- Request a written contract if your employer does not provide one.
- Review the terms to ensure they meet legal standards and your expectations.
- Keep a signed copy for future reference.
Final Thoughts
Employment contracts protect both employers and employees by outlining clear expectations and legal requirements. By including all essential elements and ensuring the agreement is in written form, you can establish a transparent and compliant working relationship. Whether you are hiring or starting a new job in Poland, prioritising these aspects will lead to a smoother and more secure professional experience.
Do you require assistance ?
If you require assistance with employment law, don’t hesitate to get in touch with our employment specialists in Poland. Our team is ready to guide you through the complexities of employment contracts and ensure compliance with Polish labour regulations.
Written by Katarzyna Szulc