Poland | Employment Tax | Employer obligations towards posted workers – implementation of the Directive on transparent and predictable working conditions

13 June 2023

Employment Tax

Poland | Employer obligations towards posted workers – implementation of the Directive on transparent and predictable working conditions

Summary

On April 26, 2023, the amendment to the Labor Code and other acts entered into force, which was dictated by the need to implement the provisions of two directives of the European Parliament and of the Council (EU) into the Polish legal order, i.e. Directive No. 2019/1152 of June 20, 2019 on transparent and predictable working conditions in the European Union and Directive 2019/1158 of 20 June 2019 on work-life balance for parents and carers and repealing Council Directive 2010/18/EU. The introduction of changes in the EU was caused, among others, by the fact that the existing regulations did not correspond to the current situation on the labor market, as they did not guarantee sufficient protection of employees, including those covered by new and non-standard forms of employment.

The amendment to the Labor Code extends the information obligations of employers towards employees, including those posted to other countries. Below we present the most important changes in this area.

The most important proposals for changes

The amendment introduced many changes in the scope of employer’s information obligations towards employees, including new information obligations for employees posted outside Poland.

Additional information obligations towards employees posted outside Poland

Pursuant to the new regulations, in relation to employees posted to work in another Member State of the European Union or a third country, a catalog of information has been introduced that the employer provides to the employee before his departure to work abroad for a period exceeding 4 consecutive weeks. Pursuant to the new regulations, in addition to the standard mandatory information, the employer is obliged to inform the posted employee about:

• the country or countries in which the work or business task outside the country is to be performed;
• expected duration of work abroad;
• the currency in which the remuneration will be paid to the employee, while performing work outside Poland providing this information is also possible by indicating the relevant provisions of the labor law;
• benefits in cash or in kind related to the performance of work outside Poland, if such benefits are provided for in the provisions of the labor law or they result from the employment contract;
• ensuring or not ensuring the employee’s return to the country;
• conditions for the employee’s return to the country, if such return is provided.

According to the regulations, documents containing all the required information must be provided to the employee before departure.

The employer informs the employee about his duties in paper or electronic form. The employer posting an employee from the territory of Poland should keep evidence of the transfer of this information.

An employer who fails to comply with the information obligation by violating this obligation is liable to a fine for an offense in the amount of PLN 1,000 to PLN 30,000.

• Employer’s information obligations towards employees posted as part of the provision of services

The amendment also introduced changes to the regulations on posting employees to foreign branches of the company, to other countries in order to perform the contract concluded with a foreign entity and sending temporary workers by temporary employment agencies to other EU countries (posted workers – covered by Directive 96/71/EC).

It is worth noting that the changes are basically consistent with the changes introduced in the Labor Code, but in addition, the employer should inform the posted worker from Poland about:

• the remuneration to which he/she is entitled under the applicable law of the host Member State,
• posting allowances and arrangements for reimbursement of travel, board and lodging expenses, where applicable,
• a link to the single official national website of the host Member State for information on the terms and conditions of employment that must apply to posted workers.

This information may be provided to the employee in electronic form, provided that it is available to such employee with the possibility of printing and storing it, and the employer posting the employee from the territory of Poland should keep proof of its transfer or receipt.

The amendment also introduces a prohibition of discrimination for an employee who requests such information, and in particular may not constitute reason for termination of employment. What is more, in case of violation of his right to provide information about employment conditions and their change, an employee posted from the territory of Poland has the right to compensation in the amount not lower than the minimum remuneration for work.

If the employer violates the obligation to inform the employee, he will be fined from PLN 1,000 to PLN 30,000.

How can we help?

As Vialto Partners, we will be happy to help you understand the scope and impact of the changes on your organization. We can pass on knowledge about the introduced changes to your teams and employees, prepare relevant information for your organization and employees going abroad, and help in preparing the information required for employees posted from abroad to Poland.

Contact:

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

•  Jadwiga Chorązka, Managing Director | jadwiga.chorazka@vialto.com
•  Joanna Narkiewicz-Tarłowska, Director | joanna.narkiewicz-tarlowska@vialto.com
•  Grzegorz Ogórek, Senior Manager | grzegorz.ogorek@vialto.com

More information about Vialto Partners can be found at this link: www.vialtopartners.com

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