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Amendments to the labour

law introduced in 2017

The year 2017 brings a number of amendments
to the labour law, which pertain to different areas
and, to some extent, materially modify solutions
that have existed unchanged for years.

Below, we present a short description of benefit fund. Previously this threshold employment, or
the key changes and their most important was set at the level of 20 employees. The • when an employee requests an
implications for employers. amendment applies prospectively and employment certificate with regard
therefore does not influence regulations to already completed employment
1. Exempting small entrepreneurs that have been introduced earlier. relationships (e.g. a probation period or a
from the obligation to introduce previous fixed-term contracts), although
internal regulations on work 2. Simplifying principles of issuing his/her employment is being continued.
and remuneration and from the employment certificates New solutions will apply to fixed-term
obligation to establish a social Currently, the obligation to issue an contracts (including probationary contracts)
benefit fund employment certificate in case of a fixed- concluded after 1 January 2017 and before
Companies employing less than 50 people term employment arises only: that date, if they remain in force as at 1
have been released from the obligation • after termination or expiry of an January 2017.
to introduce internal regulations on work employment contract, if the employer As regards fixed-term employment
and remuneration and to establish a social does not intend to continue the relationships that ended on or before
1 January 2017, in case of employment 6. Minimum salary increase 9. Recording the contractors’ working
certificates that have not been issued and The minimum salary amounts to PLN time
the 24-month period provided for their 2,000 (approx. EUR 460) as of 1 January Companies are also obliged to record
issuance has not expired, employers have 2017. Employers should review their working time of their contractors. The
time to do so until the end of June 2017. remuneration policies in this respect. recording manner should be provided
However, if an employee requests an Newly concluded contracts should include for in service agreements. Otherwise,
earlier issuance, a relevant certificate must the amendment. Contracts concluded contractors will be allowed to record
be issued immediately. earlier and providing for a lower amount working time at their discretion. This
will be amended by operation of law, if not obligation applies both to newly concluded
3. Contents of an employment amended by the parties. agreements and to those concluded before
certificate Other benefits for employees the 1 January 2017.
A new ordinance of the Minister of Family, amounts of which have been linked with
Labour and Social Policy on an employment the minimum salary, e.g. a night-time 10. Penalty for not observing the act on
certificate (of 30 December 2016) has allowance, will also be higher this year. Also remuneration cap in public sector
entered into force as of 1 January 2017. the cap on the statutory redundancy pay companies
It expands the scope of information that will be increased to PLN 30,000 (approx. The new act on remuneration cap in
should be disclosed in an employment EUR 6,900). public sector companies (effective as of
certificate, e.g.including information about 9 September 2016) has been amended
the use paternity and parental leave. 7. Equalisation of minimum salaries and as of 1 January 2017 treats persistent
The amendment applies prospectively regardless of employment history failure to comply with remuneration
Companies should adjust their template As of January 2017 there is no longer an principles provided for therein as a
employment certificates to the new option to offer employees a salary lower punishable offence. This applies to cases
requirements. than the statutory minimum in their first when the obliged party (in general, a
year of employment. The provision allowing representative of the State Treasury or of
4. Agreements on joint liability for for that has been cancelled. Employers a local government body) fails to introduce
damages invalid if not concluded in should review their remuneration policies new solutions. Such a person should not
writing in this respect. Newly concluded contracts be held liable if, despite his/her attempts,
New regulations explicitly provide for with people entering the employment a resolution adjusting remuneration terms
invalidity of agreements on joint liability market should include the new minimum. to the new requirements has not been
for damages suffered by a company, if not Contracts concluded earlier and providing passed. In principle, relevant compliance
concluded in writing. Up to date invalidity for a lower amount will be amended by procedures should commence before 30
of verbal agreements has been accepted in operation of law, if not amended by the June 2017 in companies whose financial
practice, although the statutory regulations parties. year is the calendar year.
did not include specific regulation in this
respect. As a result, the recent amendment 8. Minimum hourly rate for
does not appear bring any material contractors
practical effect Save for some statutory exceptions, a
minimum hourly rate for contractors has
5. Equalising and extending the been introduced as of January 2017 in
time to file an appeal against the amount of PLN 13 (approx. EUR 3). Anna Skuza
employment termination Remuneration determined in contracts of Radca prawny,
Time for employees to file an appeal to a mandate should be paid in cash at least Managing Associate
labour court against termination upon a once a month. Moreover, contractors will tel.: +48 22 511 08 13
notice and immediate termination without not be allowed to waive their right to the e-mail:
a notice has been equalised and extended fee resulting from the minimum hourly
to 21 days. Before 2017 it was 7 days for rate. Companies employing staff on the
termination upon a notice and 14 days in basis of contracts of mandate or service
case of a termination without a notice. agreements should verify whether any
changes in their remuneration policies
The amendment applies both to are necessary and include the minimum
termination letters served after 1 January hourly rate in the concluded contracts.
2017 and to those served in December The State Labour Inspectorate will enforce Marcin Sękowski
2016, if the time to file an appeal has not compliance with the new regulations. Radca prawny,
expired before 1 January 2017. Senior Managing Associate
tel.: +48 22 511 08 75