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The term “workplace”, although it sounds a bit archaic, formally means a combination of resources aimed at conducting business activity. In fact, even being part of a large company, the workplace operates almost independently and can be managed entirely by an outsourcing company. In the case of a takeover, the new entrepreneur undertakes to maintain the existing terms of employment of employees of the workplace, although it often happens that it tries to circumvent the regulations, e.g. by persuading existing employees to sign new contracts. What happens then?

Employees as a well-coordinated and trained team handling a specific business process are a tasty morsel on the market, as people are the greatest asset of most entrepreneurs – says Anna Wiluś-Antoniuk, legal counsel at the LeasingTeam employment agency, specializing in outsourcing of employees and HR services – fortunately, the labor law guards employees and the takeover results in continuity of employment, i.e. the durability of the same employment relationships, that existed at the original employer.

A metaphorical kiosk

A workplace is a rather strange concept, difficult to identify, a bit like the Yeti, or Bigfoot – says the LeasingTeam expert – This enigmatic term has long appeared in the provisions of the labour law, although since the political change in 1989 we have been reluctant to use its name. Associated with the socialist nomenclature of the “company canteen for employees”, this concept is dying out, reviving only in two types of discussions: about the company social benefits fund and the transfer of the workplace to a new employer. Discussions in the latter area affect employees more often than they think.

The Supreme Court explains that “an establishment” or “part of an establishment” are terms equivalent to the term “economic unit”¹. It is a set of components that allows work to be performed in it². My favorite personal example of a workplace is a newspaper kiosk: an organizationally separate place where sellers perform their assigned activities, which is usually part of a large company with a national reach, but could just as well be an independent small company that lives by supplying newspapers to the local community.

Workplace as part of the company

However, it is not always so simple and tangible to define the workplace or its part. Not every entrepreneur has a business structured into separate parts. However, in the activities of most entrepreneurs, metaphorical “kiosks” can be identified, which often change owners, and the employees employed in them – employers.

The Supreme Court³, in helping to define an establishment, suggests that in order to determine whether we are dealing with a permanently organized business unit that may constitute a permanent establishment, the type of enterprise, its assets and their value, customers associated with this unit, as well as the type of business conducted in the unit should be taken into account – explains Anna Wiluś-Antoniuk – The metaphorical “kiosk” of a large company producing anything (e.g. a plush Yeti, why not) will probably be its production department (i.e. the hall, production lines, folding and packing machines of these interesting toys, etc.), but also, for example, the accounting department. Employed accountants in a company producing stuffed animals, desks, computers, tasks and the “client” (i.e. the employer – the factory for which they keep the accounting books) also seem to be an organized economic unit that could operate independently on the market. The accounting department can therefore be a workplace or at least a part of it.

Outsourcing workplace

In a company providing services on the employment market, such as outsourcing of human resources to handle specific business processes, very often along with gaining a client, a workplace appears – says LeasingTeam’s legal counsel – By taking over e.g. a production line in a stuffed animal factory, the outsourcing service provider creates a unit in its structures intended in terms of the competence and skills of the staff for the production of stuffed animals. This unit also gains a customer, so the only thing it needs to be independent is the equipment (the production line from which ready-made cuddly toys jump off). However, by concluding an outsourcing agreement, the service provider usually obtains the right to use some of the service recipient’s equipment, and this is how a workplace is created that is no less tangible than a kiosk.

Plays of predatory competition

Organized “kiosks” of an entrepreneur providing outsourcing services are sometimes a victim of predatory competition. Hunting for good crews, trained and acquired by another entrepreneur, is therefore not as rare a phenomenon as the sight of Bigfoot. Apart from the fact that the takeover of the staff of another entrepreneur should be assessed negatively not only for ethical but also for legal reasons (as an act of unfair competition), it is also worth emphasizing that in general such a takeover will have the effect of taking over an organized part of the enterprise by a predatory acquirer within the meaning of Article 23¹ of the Labor Code – explains the expert – the result is continuity of employment, i.e. the durability of the same employment relationships that existed with the original employer, with the new employer.

Entrepreneurs hunting for the personnel of other entrepreneurs try to escape the rules of the Labor Code, persuading employees, for example, to terminate contracts with the first employer and sign them anew with the new employer. There are attempts among entrepreneurs who take over other people’s employees to create the impression that the transfer of the workplace did not take place, because by complete coincidence all those employed in, for example, handling the production of stuffed animals in company A decided to leave A and work in B. Fortunately, the courts in such cases are not easily deceived. There is no doubt in the case law that the transfer of an establishment or part thereof does not depend on a legal transaction between the employers (i.e., e.g. signing a contract for the sale of a part of the workplace), and the will of the parties as to the transfer of the workplace is not decisive ⁴. Therefore, it is possible to assume the rights and obligations of the predecessor, entering into employment relationships in his place, without actually wanting to. What matters is the effect.

New employer – old rules

By hunting for employees of your competitors, you can wake up “in the shoes” of your competitor, i.e. your previous employer – warns the LeasingTeam expert – counting on a simple takeover of a good crew on your own terms, you can become an employer of a crew with a large number of overdue vacation days, with active trade unions and other circumstances shaping the situation of employees differently than the entrepreneur taking over them could imagine.

Labour law favours employees and only fair competition, burdening market predators with the responsibility for continuing employment relationships after the transfer of the workplace to a new owner. The principle of continuation of employment means that the new employer takes over the employment contracts with the acquired employees in an unchanged form, with all the “benefits of the inventory”, which in particular means full responsibility for maintaining and exercising all acquired rights of the acquired staff.

In many companies, there are situations in which additional employees need to be hired, e.g. due to increased production, a special order or seasonal activity. However, temporary employment involves additional costs of recruiting and retaining an employee. An alternative solution that will help reduce these costs is employee leasing, offered, m.in, by LeasingTeam. Find out what exactly this service is and what it looks like in practice.

Employee leasing – what is it?

Employee leasing is a form of cooperation between three entities – a company, a temporary employment agency and an employee. A company that is interested in hiring additional labor applies to a special agency that uses its resources and allows the company to “borrow” the employee they need for a certain period of time or until a specific task is completed.

There is another form of employee leasing, in which one company rents its employee to another company, on the basis of granting him unpaid leave – similar to a temporary agency for a specific period of time or until the completion of a required task. In order for the cooperation to take place, the employee must give written consent to such an exchange – no company can impose it on him. In such a case, the employee’s employment relationship with the parent company is suspended for the time of return from leave.

In practice, it looks like this:

Company A, where the employee is employed, comes to an agreement with company B on the terms and conditions of his rental. Company A gives the employee unpaid leave, on the basis of Article 174¹. § 1. KP. so that he could work for B’s employer for a certain period of time.

Employee leasing and temporary work

The employee rental service does not have any specific regulations in Polish law except for the aforementioned article. The term “employee leasing” does not appear in any of the regulations.

The case is slightly different in the case of temporary work. In this form of employment, the provisions of the Act of 9 July 2003 on the employment of temporary workers apply. According to her, temporary work is:

„[…} performing for a given employer/user, for a period not longer than specified in the Act, tasks: a) of a seasonal, periodic, ad hoc nature, or b) the timely performance of which by employees employed by the employer/user would not be possible, or c) the performance of which is the responsibility of an absent employee employed by the employer/user”¹.

This Act specifies that an employee for one employer/user may perform services for a total of 18 months, however, for a period that includes the next 36 months. In the case where a borrowed employee replaces a person who is permanently employed in a given company, the maximum working time for one employer is 36 months.

Advantages of employee leasing

Employee leasing is a service that guarantees many measurable benefits to the company. The biggest advantages include:

• relieving the company’s resources – when “borrowing” an employee, you do not have to worry about recruitment, paying salaries, contributions and other formalities – everything will be taken care of by the selected temporary employment agency,
• flexible employment structure – thanks to a qualified agency, you can adjust the level of employment to the current needs in the company,
• saving time and costs – by deciding to hire an employee through an agency, you save both the time that would be needed to recruit and keep the employee’s records, as well as the money that would have to be spent on the entire process,
• access to specific specialists – the agency has a pool of qualified specialists with the required skills, so you do not have to devote your resources to looking for a person with the desired competences,
• Try & Hire – you gain the opportunity to check a given employee in the company environment, before hiring them permanently or creating a new position, which further reduces the costs of recruiting them on the labor market,
• guarantee of production continuity – your company is experiencing a siege related to orders and you need additional employees practically overnight? The agency provides you with up to several dozen qualified specialists who guarantee timeliness and uninterrupted production.

Is employee leasing profitable?

If you want to quickly find an employee with specific competences, then employee leasing or temporary work are the perfect solution for you. Using the services of a qualified and professional agency, such as LeasingTeam, guarantees that your company will get the right help when it needs it, and you will not have to worry about formalities. Check out our offer and see for yourself how convenient it is!

The costs of hiring an employee in Poland are horrendously high. Many employers do not create additional jobs despite the demand, because in addition to the salary for the employee, they have to take into account huge expenses related to social security contributions. In the past, employment costs could be reduced by opting for civil law contracts, primarily a contract of mandate. Currently, even this is associated with high costs.

How much does the employer really spend due to hiring employees? In addition to typical labour costs, what should be included in the final calculation? How to reduce the costs associated with employment without giving up on qualified employees?

Costs of hiring an employee under an employment contract

The most desired and most popular form of employment in Poland is an employment contract. The legal regulations related to it result from the Labour Code. Employees are not always aware of the high costs incurred by the employer. They are interested in the net salary received in hand. But the costs of hiring an employee are much higher – the employer has to dig much deeper into his pocket.

In addition to the salary and income tax, which in practice is paid by the employer, the costs incurred by the employer also include the following contributions:

• pension contribution – 9.76%,
• disability pension contribution – 6.50%,
• accident premiums – 1.67%,
• Labour Fund – 2.45%,
• guaranteed employee benefits fund – 0.1%,
• In total, the additional burden on the employer reaches about 20% of the gross salary.

In 2021, the minimum wage was PLN 2800 gross. In 2022, its amount increased to PLN 3100 gross. However, this is not the end of the increases, and next year they will be even more radical. From 1 January 2023, the minimum wage will increase to PLN 3490, and then from 1 July it will reach PLN 3,600 gross.

With the current minimum wage, the employer incurs an additional cost of over PLN 616 in terms of contributions. In turn, from July 2023 with a minimum wage of PLN 3,600 gross. The total cost of the employer will reach PLN 4,337.28, which means PLN 737.28 allocated each month for mandatory contributions.

However, it is worth taking into account that minimum wages are rather rare. Specialists earn at least several times more. The other costs of employing an employee also increase proportionally. In a word, the employer’s situation is not comfortable.

Costs of hiring an employee under a contract of mandate

A contract of mandate is still a fairly popular form of employment, especially among temporary workers, seasonal workers and lower-level employees, where there is a relatively high turnover. The issue of a contract of mandate is regulated by the Civil Code. Some employers still choose this form of employment because it gives more flexibility, for example when it comes to dismissing an employee.

What are the costs of employment under a contract of mandate? They are variable. The costs of employing an employee under a contract of mandate who is under 26 years of age and has the status of a student are only the gross salary. The situation is similar in the case of employees who are employed in another company, where they receive remuneration equal to at least the minimum wage. Unfortunately, in other cases, which are the vast majority, the employer incurs exactly the same costs as in the case of employment under an employment contract.

Labour costs related to a contract for specific work

The situation is different in the case of contracts for specific work, which are not subject to contributions, so the only cost incurred by the employer is the employee’s gross salary. Why, then, is this type of civil law contract not more widely used in Polish companies?

Because the contract for specific work does not bind the employee with the employer in any way, but only obliges him to perform a specific work included in the contract. In practice, this means that an employee who would sign such a contract can perform the work anywhere, does not have to appear at the company’s headquarters and is not subject to the employer’s control.

It is worth mentioning that the modern labor market is largely an employee’s market and it is the employees or potential employees who have more to say when negotiating the terms of cooperation. A contract for specific work is not attractive for permanent or even temporary employees, because it does not guarantee them any employee rights and privileges. Currently, it is used for its intended purpose by professionals who accept specific orders from clients.

High employment costs and the characteristics of the labour market

An employer who is considering creating additional jobs must take into account other factors. Dry costs of hiring an employee are not everything. The modern labor market is employee-friendly, who can usually choose from many offers and expect additional benefits from the employer. These include, among others, Private Medical Care, additional health insurance, sports benefits and other non-wage benefits.

In addition, it is also worth taking into account all costs related to social facilities, as well as HR and payroll services and the recruitment of employees itself. Maintaining an HR department, even a small one, requires the creation of additional jobs. It is worth remembering that each recruitment process is also associated with the risk of not being able to find the right specialist. Fortunately, and at least this risk and the associated costs can be reduced.

Permanent recruitment with an agency – it pays off

More and more companies are recognising the benefits of recruitment support provided by an employment agency. Permanent recruitment has become a valued service. What do they consist of? The agency takes care of the entire recruitment process. Thanks to the fact that specialized external companies have extensive experience and a database of candidates, the probability of finding the right employee who will accept the conditions offered by the employer is much higher. What does the permanent recruitment process look like?

First of all, the agency together with its client, i.e. the employer, precisely define the needs and expectations related to a given position. This creates a profile of the ideal candidate. In the next stage, the agency deals with the search for suitable candidates. For this purpose, it uses its own contact database, but also professionally prepared advertisements posted on recruitment portals and industry websites. The initial selection of candidates takes place while still in the agency, which is a huge time saver. The same applies to initial interviews. As a result, the employer who is the agency’s client receives a list of indicated candidates. Subsequently, he can recruit some of them himself.

Costs of hiring an employee and the benefits of permanent recruitment carried out by an agency

Given the high cost of employment, the risk of ineffective recruitment becomes even higher. The employer wastes time and resources on training the recruited employee, and if after a few months of the trial period it turns out that the candidate does not meet expectations, the whole process starts again. Therefore, permanent recruitment carried out with the help of an employment agency is extremely profitable.

The most important benefits of permanent recruitment carried out by the agency:

• quick access to candidates presenting appropriate qualifications;
• the possibility of recruiting among passive candidates who, theoretically, are not currently looking for a job, so they would not make it to the advertisement;
• maximum reduction of the time allocated for recruitment;
• faster onboarding of a new employee who already has extensive experience;
• no need to maintain an HR department responsible for recruitment, which compensates for high employment costs;
• substantive support of the agency at every stage of recruitment;
• recommendations from experienced recruiters on how to choose the right candidate.

The high costs of hiring an employee in Poland make it not worth taking the unnecessary risk associated with unsuccessful recruitment. Permanent recruitment by specialized agencies reduces costs and risks, allows you to find the best specialists and speeds up the recruitment process itself.

Some entrepreneurs complaining about high labour costs may also consider more flexible forms of hiring employees if the demand for labour changes over time, or for various reasons the full-time employee will be absent from work for a long time. In such a case, temporary work turns out to be a reasonable solution, which reduces costs and formalities on the part of the employer to an absolute minimum.

The LeasingTeam Group is launching a digital HR service system – the TalentPoint platform. It is a proprietary solution in the field of human resources management, which has been built on the basis of several years of experience of the Group in the HR market.

After a thorough business analysis using the customer development methodology, the problems that most often accompany employees and customers and are the most time-consuming to solve were diagnosed. Thanks to this research, it was possible to create a tool that is primarily functional and meets these needs.

– We built the TalentPoint platform based on a comprehensive analysis of business needs, in-depth deconstruction of existing processes, and interviews with users. Its development is constantly guided by the desire to find solutions to real, well-identified problems. All over the world, the development of HR software is very dynamic and we believe that we are fighting for the customer without complexes, and our software can play an important role in the demanding Polish market. For example, we paid a lot of attention to the issue of user experience – so that the platform is as intuitive as possible and leads users “by the hand” through its individual stages of activities and complex processes. We also want to compete with the quality and speed of the platform’s technical service and a holistic approach to the digitization of HR processes – says Marek Deręgowski, Business Development Director at IT LeasingTeam, the company responsible for the implementation of TalentPoint.

Basic functionalities of TalentPoint

TalentPoint is a tool with a wide range of usability – thanks to its architecture and created API, it can work with many ERP and HR and payroll systems, covers all groups of employees, making the use of this platform extremely simple and brings many benefits to the company. Thanks to TalentPoint, each employee will save time on formalities, e.g. sign an online contract and settle working hours on their own. In addition, he will be able to recommend friends to work and receive an adequate, predetermined remuneration for it. The platform also streamlines the process of transferring salaries, gives insight into basic current information (number of vacation days, payslips, official reports). By the end of the year, the creators want to implement, m.in, modules related to business trips, certificates for employees and additional analytical reports. They are also planning further integrations with the systems of the Group’s customers, which will allow for the automation of data exchange.

Digital transformation strategy

TalentPoint is another step of the LeasingTeam Group towards digital transformation. The first was the implementation of an integrated administrative platform, which allowed to improve the circulation of documents and communication between employees.

– Before we decided on our own platform, we analysed the available tools – each of them would require time-consuming and laborious transformation to meet our needs, and at the same time would prevent us from responding quickly to new customer and employee requirements. Along with the development of the LeasingTeam Group, there was an obvious need to evolve IT solutions. As part of our digital transformation strategy, we plan to digitize further business processes and create new tools. Software plays a key role in companies from every area of the economy, which is why we decided to build our own development team, which will allow us to achieve our goals in the long run and increase our competitive advantage – says Andżelika Majewska, Vice President of LeasingTeam.

Interestingly, the driving force behind LeasingTeam Group’s activities was the pandemic, which set the pace for implementation activities, as it showed how important modern online solutions are in the HR industry, especially if they can flexibly respond to the needs of specific organizations, as is the case with TalentPoint.

TalentPoint was created on the basis of many years of practice of LeasingTeam Group in the area of HR, both in terms of IT systems and practical handling of HR projects. The platform, which has been developed and improved for a long time, will allow for more effective work by automating many processes and thus facilitate the achievement of the intended goals of each company. The system is and will be constantly developed, but TalentPoint is already ready for use. “After the initial presentations of the system, we received very positive feedback and the first few customers interested in the comprehensive digitization of HR processes ,” says Marek Deręgowski, Business Development Director at IT LeasingTeam.

In a crisis situation caused, among others, by changes in the market, competition, economic crisis or fortuitous events, an entrepreneur wishing to save the company may use one of the methods of cost reduction, i.e. group redundancy. During a crisis occurring in a company, an entrepreneur faces very difficult decisions. The group redundancy procedure involves many regulations and formalities to take care of. Details concerning them are specified in the Act on Collective Redundancies.

What are collective redundancies?

The Act on collective redundancies applies when the employer employs at least 20 people and when the company terminates the employment relationship for reasons not attributable to the employees.

Collective redundancies can only be considered if the entrepreneur meets the above conditions by laying off the following within 30 days:

• 10 employees if it employs fewer than 100
• 10% of employees if it employs between 100 and 300 people
• 30 employees if it employs more than 300 people

Whether the Act on collective redundancies can be applied in a given case is determined by the number of employees in force at the time of termination of the employment contract. It is worth remembering that the number of employees does not take into account temporary workers, as well as other persons providing services to the employer on terms other than an employment relationship, including civil law contracts.

Act on collective redundancies – criteria for selecting dismissed employees

In the light of the law, when collective redundancies occur for reasons not attributable to employees, the employer does not have full discretion in selecting employees with whom the employment relationship will be terminated. The guiding principle applied in this case is the principle of non-discrimination of employees.

When selecting employees for dismissal, the employer is obliged to take into account all employees affected by the situation, and then to be guided only by objective premises when making decisions.

At the same time, the employer may be guided by its own interest and needs when making a decision to select specific employees for group redundancy. In this way, the employer takes into account criteria such as:

• the length of service of a given employee in the company,
• education and professional qualifications of the employee in a specific position,
• the course of previous employment in the company and the qualifications acquired during it.

Act on collective redundancies – employees under increased protection

An employer planning group redundancies does not have full freedom in the selection of employees who will be covered by the group redundancy. There are groups of employees who, for various reasons, are under increased protection, and the employer only has the right to terminate the current working conditions and pay of these employees.

Here are examples of employees with enhanced protection who cannot be covered by collective redundancies:

• members of the company’s trade union organization who are authorized by the organization to represent it before the employer;
• members of the management board of the trade union organization operating in the plant;
• members of special negotiating teams;
• members of the European Works Council;
• employees called up for active military service,
• compulsory military service or military training;
• social labour inspectors.

The only exception to this rule, allowing the termination of employment with an employee subject to enhanced protection, is the liquidation of the company or declaring it bankrupt.

If the employer decides to terminate the terms and conditions of work and pay for these groups of employees, and this results in a reduction in their remuneration, employees are entitled to a compensatory allowance. It is exactly the difference between the remuneration arising from the changes and the previous remuneration. Employees subject to enhanced protection benefit from the compensatory allowance until the end of the period during which they would benefit from special protection.

Additional obligations of the employer

Group redundancies also oblige the employer to complete the formalities specified in the law. An employer intending to carry out group redundancies must consult the trade unions and notify the relevant district labour office and inform them of the arrangements made through negotiations with the trade unions.

Consultation of collective redundancies with trade unions

When planning group redundancies, the employer is obliged to consult this decision with the company’s trade unions operating in the company. If there are no trade unions in the company, such an obligation exists for employee representatives. Trade unions or employee representatives must receive a letter from the employer containing key information about the planned redundancies.

The document should include the reasons for the planned group redundancy. The letter must also include the number of employees employed along with the occupational groups to which they belong. Among them, the employer indicates the groups that will be covered by the redundancies according to the plan. The document must also include information about the order in which the redundancies are made, the period in which the redundancies will take place and the aforementioned criteria for selecting employees, on the basis of which the dismissed employees will be selected.

Then, the employer and trade union representatives prepare an agreement on group redundancies. The document should be created after a maximum of 20 days from the moment when the employer informed the trade union organizations or employee representatives in writing about the planned redundancies.

It happens that the employer and representatives of trade unions cannot reach an agreement and work out such a document. In such a case, the employer prepares the regulations on collective redundancies on its own, but it is the employer’s obligation to take into account, as far as possible, the proposals presented by trade union organizations or employee representatives as part of prior consultations. The prepared agreement or regulations specify how many employees will be affected by the redundancies, what the criteria for selecting employees will be, as well as the order of dismissals and the deadlines for termination.

Group redundancies – notification of the labour office

This is not the end of the employer’s obligations regarding collective redundancy. After working out an agreement with the trade unions or preparing regulations regarding redundancies, the employer notifies the relevant district labour office of the arrangements in writing. A copy of the document is sent to the company’s trade union organizations or employee representatives. They have the right to give the authority their opinion on the exemption.

What should be included in the letter notifying the office about the conditions of the collective redundancy?

• The period during which the collective redundancy of employees will be made.
• Information on consultations on collective redundancies with trade unions or employee representatives.
• The number of employees in the company, as well as the number of dismissed employees along with the reasons for their dismissal.

An employer carrying out a collective redundancy may terminate the employment relationship with employees only after 30 days from the submission of a written notification to the labour office.

REMARK! In the case of a collective redundancy, the termination of the contract with the employee may take place no earlier than 30 days from the date of notification of the agreement concluded with the trade unions to the labour office.

Severance pay

Employees dismissed as part of group redundancies receive a benefit in the amount depending on the period of employment with a given company. The severance pay is as follows:

• the equivalent of 1 month’s salary if the employee has been employed by the employer for less than 2 years;
• the equivalent of 2 months’ salary, if the employee has been employed by a given employer for a period of 2-8 years;
• the equivalent of 3 months’ salary if the employee has been employed by the employer for more than 8 years.

The severance pay may not be higher than the value of 15 times the minimum wage in force on the date of termination of the employment relationship.

>> The most important information about employee severance pay after dismissal

Rehiring an employee after a collective redundancy

Employees who have been laid off under collective notice have priority to return to the company. However, there is no guarantee that you will receive the same position, salary or working conditions if:

• the employer re-employs employees in the same occupational group;
• the registered employee reported within one year of dismissal the intention to take up employment with this employer;
• Less than 15 months have passed since the termination of the employment relationship with the employee as part of a collective redundancy.

The employer is obliged to hire a previously dismissed person. Otherwise, the employee may demand employment and compensation.

Where there are fewer jobs than previously made redundant workers, criteria should be created based on the principles of equal treatment to choose who will be re-recruited.

What is a certificate of employment and who is it obligatory?

A certificate of employment and earnings is a document issued by the employer at the employee’s request. It is used to confirm the source and amount of income, which is necessary or useful in many situations. There are no specific provisions in the Labour Code indicating how to apply for a certificate of employment. According to its provisions, the issuance of the document by the employer is also not obligatory. It results only from his good will, except for one situation – when a certificate of earnings is necessary to determine the right to ZUS benefits (pension) and their amount. Then, in accordance with the Act on Retirement Pensions and Disability Pensions of the Social Insurance Fund, the employer is obliged to issue a document.

However, it is worth knowing that refusal to issue the certificate in other situations can be considered as acting to the detriment of the employee, and thus a breach of the obligation to care for the employee’s welfare.

Who issues a certificate of income and employment?

The employee asks the employer to issue a certificate of income or employment. In practice, however, it is usually its representative – a manager or, for example, an accountant. These may be persons authorized to issue this type of documents. However, the employee should make sure that the institution that asks for proof of employment will accept such a document. Sometimes it happens that the signature of the employer itself is also required.

Certificate of employment – contract of mandate and other forms of employment

And what about the certificate of employment in the case of a contract of mandate or a contract for specific work? In this case, the principal can also issue such a document. However, it is not obliged to do so under any regulations. Usually, however, there is no problem with obtaining a certificate. In the case of temporary employment, you should apply directly to the agency with which you have signed a contract for a certificate of employment and earnings. The Agency is also obliged to issue an employment certificate (confirmation of employment in a specified period) after the end of the contract (within 7 days).

When is a certificate of employment and earnings needed?

A certificate of income or employment may be needed by an employee in various situations. Most often, employees ask for a document to present to a financial institution (bank) when applying for a loan. It is needed for both mortgage loans and other types of loans and concluding leasing or installment agreements. A certificate of earnings is also often required by non-bank institutions granting loans. They are primarily used to calculate creditworthiness. Sometimes they can be replaced with a bank statement or statement, but this is usually only possible when borrowing smaller amounts and shorter loan periods. A certificate of employment from the employer gives the institution greater certainty that loan installments, purchase or leasing, will be repaid on time.

Certificates of employment and earnings are also often requested by employees who are parents. They may be required in a kindergarten or other type of care and education facility. In some places, there is a need to show income per family member or confirm that the parents work, so they cannot take care of the child on their own during the day.

In addition, it happens that a certificate of income or employment is required:

• when applying for social assistance, subsidies or subsidies,
• in court – e.g. in cases for granting, increasing or reducing maintenance,
• by a telecommunications operator, internet provider, etc. – before signing a contract for the provision of services,
• when applying for a scholarship or social assistance for a school-age child or a student,
• in the process of applying for a place in a student dormitory.

Therefore, it is quite an important type of document for employees.

What should a certificate of employment and earnings contain?

Preparing a certificate of employment and earnings should not be a problem for anyone. A template of such a document can be found on the Internet. It also happens that the institution requiring the submission of the certificate has its own form, which only needs to be supplemented with the company’s and employee’s data, signed and stamped with the company. Certainly, the content of the document must include:

• employee data: name, surname, PESEL number, series and number of ID card or passport,
• data of the company or institution issuing the certificate,
• information about current employment: most often the date of starting work, the name of the position held, the type of contract (whether it was concluded for a definite or indefinite period of time or a substitute),
• the amount of the employee’s earnings calculated on the basis of the salary for the last three months (gross),
• information about possible bankruptcy proceedings of the employer or bailiff enforcement of the employer.

Remember to include the stamp and signature of the employer – without it, the document will be invalid.

Employers know very well how many duties and great responsibility are associated with running your own business. Many formalities are required, for example, when hiring employees, which is also associated with high costs. Check what forms of employment are available and which one is the most advantageous.

What does the choice of the form of employment depend on?

Each form of employment of employees is associated with slightly different obligations of the employer and costs. Each is also intended for different purposes. Therefore, its choice should depend to a large extent on how the cooperation between the employer and the employed party will proceed. There are positions where it is important to constantly monitor the employee, but there are also those where the time, manner or place of work does not matter – only the effect matters. This may affect the optimal form of employment.

In this case, a lot depends on the expectations of both parties, as well as the specifics of running the business and the needs of the employer. Therefore, no form of employment can be considered universally the best. Therefore, it is worth familiarizing yourself with the features of each solution and making your own decision.

Forms of employment – employment contract

An employment contract is often considered to be the “best” form of employment – especially from the employee’s point of view. In fact, the employee can enjoy numerous privileges and, above all, stability. Formally, only people employed under an employment contract can be called employees. Only they are also covered by the Labour Code. Therefore, from the employer’s point of view, this form of employment is not necessarily beneficial – primarily because it causes many restrictions.

An employment contract applies to the performance of work in a specified position, at a specific place and time, under the direction of the employer or another person indicated by the employer, for a specific remuneration. It involves the need to cover the costs of full ZUS contributions. The most important characteristics of this form of employment are:

• regulated working time,
• the need to ensure remuneration above the minimum wage threshold set by the government,
• the employee’s right to paid leave,
• sick pay,
• detailed rules for hiring and dismissing employees,
• additional remuneration for work on Sundays and holidays or overtime.

The employer must then take into account high employment costs – much higher than in the case of other contracts. The minimum cost of employing an employee under an employment contract is the amount of the minimum wage plus approx. 20% of social security contributions. The method of terminating the contract may also be a problem. The employee is protected under this form of employment.

It is also worth knowing that there are different types of employment contracts. These are the following agreements:

• for an indefinite period of time,
• for a trial period (up to 3 months),
• for a limited period of time,
• for the duration of the work,
• as a replacement.

So does an employment contract have any advantages from the employer’s point of view? It certainly increases the attractiveness of a given position, helping to attract better employees. By offering an employment contract, permanent recruitment of specialists and qualified employees is much easier. It also helps in reducing turnover and improving collaboration thanks to team stability. It increases employee loyalty and can translate into the quality of their work. However, these are also threats, because a person employed under an employment contract can abuse their privileges without major consequences.

Contract of mandate – a better form of employment?

An alternative for employers who are afraid of the obligations and costs associated with an employment contract is a contract of mandate. It is concluded on the basis of the provisions of the Civil Code. It is associated with greater independence of the employee and fewer obligations of the employer. It is usually concluded for the performance of a specific work for a specific remuneration. The employee is then referred to as the contractor, and the employer – the principal. The contractor is obliged under the contract to perform the order diligently, but there is no specific effect in this case.

A contract of mandate is definitely a form of employment that is less desirable by employees. It does not involve paid leave or the possibility of taking sick pay. It can be terminated without numerous formalities and without notice. In this case, the provisions of the Labour Code do not apply either, e.g. regarding the maximum working time, uninterrupted rest or overtime. However, the employer’s costs are much lower, which usually means a higher net (“take-home”) salary for the employee. Currently, all contracts of mandate are subject to mandatory contributions until the monthly income from all insurance titles is exceeded – PLN 2600 gross. For contracts of mandate, there is also a minimum hourly rate of remuneration.

However, it should be known that according to the law, a contract of mandate is intended to be used only in situations where the employment does not have the characteristics of an employment relationship. Therefore, this applies to positions characterized by independence and freedom in the organization of work and the lack of strictly defined working hours. If the work is to be performed at a specific place and time, and the employee is subject to the instructions of the supervisor and does not have freedom to organize his duties, the use of a contract of mandate may be associated with unpleasant legal consequences for the employer.

Contract for specific work – a form of employment in which the effect is the most important

A contract for specific work is the least frequently used form of employment, because it is characterized by a specific purpose. It is concluded on the basis of the provisions of the Civil Code and concerns the performance of a specific work. This means that what matters is the result of the work done. Usually, the maximum time of its performance is specified under the contract for specific work, but apart from that, the employee has full freedom regarding the organization of time, place and method of work.

The contractor is not subject to social security contributions, nor does he have any employee privileges. There are no minimum wage rates. It is possible to apply high flat-rate tax-deductible costs. It is a form of employment associated with minimal formalities, ideal in situations where only the effect of the work done counts. Employment costs are the lowest in this case.

According to the World Economic Forum’s report on the future of jobs, by 2025 as many as 50% of all employees will require retraining. Does the retail industry also apply to it and what is the reason for this?

The retail industry, like many others, automates work, which inevitably entails the need to eliminate or reduce some jobs. The number of vacancies for cashiers will be reduced the fastest. We have been observing this trend for some time, but the pandemic has definitely accelerated the whole process. Most supermarket and discount store owners made an immediate decision to equip their stores with self-service checkouts. However, along with them, there was a need to hire new people or retrain the current employees who will watch over the cash registers and help customers make purchases.

Another challenge for the traditional retail industry is the growing e-commerce. The pandemic has strongly affected the shopping habits of Poles. We have been somewhat forced to shop online and I am convinced that many of us have liked this form and will stay with it. E-commerce will certainly absorb some of the employees of the traditional retail industry, who will be good employees after a little retraining.

In my opinion, the total number of available vacancies in the retail industry should not drop drastically, but there will certainly be a reshuffle between positions and tasks. Although Amazon is successfully experimenting with stores that do not have customer service at all, their introduction to the market on a larger scale is still a matter of many years, and supplying such a store also involves human work.

Automation is also progressing in retail in the form of placing self-service checkouts in stores. Can their dissemination seriously threaten cashiers/salespeople?

The position of a cashier has been on the list of those “threatened” with disappearing from the labor market for a long time. Indeed, we are currently recording a decreasing demand for this position, which we observe among customers, but also confirmed by statistics, e.g. a study by Grant Thornton and Element shows that in January 2021, the demand for cashiers fell by 42% compared to January 2020. By far the main reason for this is the popularization of self-checkouts. Automation will be most visible in larger stores, where self-checkouts have an economic raison d’être. Smaller local stores will not decide on such an investment in the near future.

The cashier’s position will evolve towards customer service – support during shopping or contact with the customer in the case of e-commerce. At the moment, however, it is difficult to imagine grocery stores without cashiers. Why? Seniors are much more willing to use traditional cash registers, and cash settlements are still quite popular in Poland.

Not all activities can be replaced by machines. What retail employees should develop key competences to defend their jobs?

The World Economic Forum report presented a list of the most important competences desired in the changing market reality:

1. Analytical thinking and innovation
2. Active learning and learning strategies
3. Solving complex problems
4. Critical thinking and analysis
5. Creativity, originality and ingenuity
6. Leadership and Social Impact
7. Use of technology, monitoring and control
8. Technology Design and Programming
9. Resilience, ability to cope with stress, flexibility
10. Inference, problem-solving and ideation

Manual workers, including cashiers, who will be replaced by automation will have to find their way in the new reality and improve their competences to manage such systems and use their previous experience to support new processes. An alternative solution is to change industries towards professions that have not been so seriously affected by automation, but are related to them, such as customer service.

Has the broadly understood trade already dealt with the shortage of workforce or is there still a shortage of qualified workers?

Taking into account the demographic situation in Poland, the problem of the shortage of workforce will only grow. Although the pandemic period and the closure of other industries caused a temporary influx of people willing to work in trade, it lasted literally several months. Currently, the situation has returned to that before the pandemic – there is a particular shortage of lower-level employees, and companies are struggling with a high turnover. It is therefore not surprising that stores are investing in automation.

People with what qualities/qualifications will work best in trade, e.g. in a grocery store?

Everything depends on the duties of the person. Will she be only a cashier, or will she also be responsible for, for example, putting out goods, taking care of order in the store, collecting deliveries, etc. In many discount stores, these functions are combined by one person. Working in a grocery store certainly requires physical fitness and willingness to work shifts, but soft skills such as openness, patience with the customer, optimism and smile, and often the ability to resolve conflicts, are crucial. Hard qualifications, such as cash register operation, delivery management, etc. You can learn over time, although if a given candidate has knowledge and experience in this area, he or she is certainly more attractive in the eyes of the employer.

Retail, especially FMCG, is not a rewarding and easy job. It is not only automation that makes some people not want to work in retail. What are the biggest concerns of employees related to working in retail and how can an employer remedy this?

In my opinion, the development of automation does not significantly affect the candidate’s decision to look for a job in retail, or more specifically in a store. Employees are mainly afraid of excessive physical exploitation (receiving deliveries, carrying and putting out goods, etc.) and shift work and work on Saturdays. While the employer has no influence on the second factor – this is the specificity of the industry, the first one is significant and significant. The key is to skillfully manage people and tasks, and regularly rotate employees in individual positions. The store manager should take care of all this. Our observations show that the turnover or its in the store depends on his approach.

Foreign employees are an opportunity for many Polish companies to fill vacancies and develop their business. Jobs in Poland are particularly popular among immigrants from Ukraine, Belarus or Russia, but there is also no shortage of workers from China, India, the Philippines and many other countries around the world in our country. What does the employment of a foreigner look like? What formalities must be met? Read and check!

How to employ a foreigner – the basics

Certainly, it cannot be said that the employment of a foreigner in Poland is a problematic issue. However, it is associated with certain important legal regulations and procedures. Their fulfillment is necessary if you want to avoid problems with the justice system.

It is worth knowing that a foreigner is considered to be any person who does not have Polish citizenship, while employment is the performance of work on the basis of an employment relationship, an employment relationship and a homework contract. A foreigner may also perform work or provide services under civil law contracts. In most cases, hiring a foreign national requires applying for a permit.

Employment permit for a foreigner

A permit to employ a foreigner can be obtained from the voivode after submitting an appropriate application. This is an obligation that belongs to the employer. In order to receive a permit, two main conditions must be met:

• the remuneration of the foreigner specified in the contract cannot be lower than the remuneration of employees in comparable positions,
• The voivode must receive a confirmation from the starost that the employer’s staffing needs cannot be met – on the basis of data on the unemployed and job seekers or the results of recruitment conducted by the employer.

It is also possible to obtain a permit to employ a foreigner in the so-called simplified mode – without information from the starosta. This happens only if the profession or type of work that the foreigner would perform is included in a special list. It is also not necessary to obtain information from the starost when renewing the permit, as long as it concerns the same employee and the same position.

A permit to employ a foreigner is issued for a definite period of time (maximum 3 years), unless he or she serves on the management board of a company having the status of a legal person and employing (on the date of submitting the application) more than 25 people – then the permit may cover up to 5 years. If the foreigner is to be delegated to perform an export service, the permit covers only the period of delegation. Obtaining a permit involves a fee for the State Treasury (from PLN 50 to 200, depending on the type and duration of the permit). The fee for an application for renewal is half of the amount required for obtaining a permit. There are 5 types of work permits for foreigners in the territory of the Republic of Poland granted by the voivode, marked with letters from A to E. Seasonal work permits are marked with the letter S and granted by the starosta.

Hiring an employee from Ukraine – is a permit necessary?

However, there are cases in which a permit to employ a foreigner is not needed. This applies to, m.in, citizens of countries such as:

• Russia
• Ukraine
• Belarus
• Georgia
• Moldova
• Armenia.

In this case, a simplified employment procedure applies, as long as the foreigner performs work for a period not longer than 6 months within the next 12 months (regardless of the number of employers). In such a case, the employer is only obliged to submit a statement of intention to employ the district labour office.

A work permit for a foreigner in Poland is also not required in a number of other cases listed in Article 87 of the Act of 20 April 2004 on the promotion of employment and labour market institutions (Journal of Laws of 2018, item 1265). Without additional formalities, m.in refugees, people with a permit to settle in Poland, citizens of EU, EEA or Swiss member states can be employed. In addition, a permit is not required for:

• foreign language teachers in nursery schools, schools, other educational institutions, teacher training institutions, colleges referred to in the school education regulations or in the Voluntary Labour Corps (OHP);
• full-time students of studies in the Republic of Poland (but only in July, August and September),
• students doing professional internships referred by organizations that are members of international student associations,
• posted to the territory of the Republic of Poland by a foreign employer, if they retain their permanent residence abroad, for a period not exceeding 3 months in a calendar year.

Recruitment of employees from abroad

Are you interested in supplementing the staff with foreigners, but you don’t know how to go about it? The best idea will be to recruit employees from abroad organized by a reliable intermediary, such as Leasing Team. This way it is possible to hire an employee from Ukraine, Belarus, Moldova or other countries in the East, as well as from Asian countries such as India, Nepal or the Philippines. Thanks to this, you will not only be relieved of all formalities, but also gain employees with competencies perfectly suited to a given position. As part of the service, it is also possible to help with HR and payroll, as well as the organization of accommodation or travel. The agency also deals with the preparation of contracts. Thanks to this, the complicated process of employing foreigners becomes much simpler!