Attention Employers! New Labor Law Regulations Are Now in Force

The new Act of March 20, 2025, on the Labor Market and Employment Services was signed by the President of Poland on April 10, 2025, which means the new regulations will come into force on June 1, 2025. The act introduces a number of significant changes to the functioning of labor market institutions, the system of professional activation, and employer-employee relations.

The existing Act of April 20, 2004, on the Promotion of Employment and Labor Market Institutions will cease to be in force on the date the new legislation takes effect.

New structure and role of public employment services

The reform provides for a comprehensive reorganization of public employment services. It emphasizes specialization and increased efficiency in supporting the unemployed and job seekers. County and provincial labor offices will receive new IT tools and greater operational autonomy, while also being subject to stricter performance evaluation measures.

From the perspective of employers, a particularly important change is the significant acceleration of processes related to obtaining training support, adapting workplaces, and matching candidates to open positions.

More funding for professional development and employment of seniors

New employment support instruments of particular interest to employers include:

• Expanded access to the National Training Fund (KFS)

The KFS, which had previously been available mainly to micro, small, and medium-sized enterprises, is now also accessible to self-employed individuals and those employing workers under civil law contracts. This opens up new opportunities for co-financing the improvement of professional qualifications.

• Subsidies for employing people aged 50+ and pensioners

Financial incentives have been introduced for hiring unemployed persons over 50 and pensioners registered as job seekers. Employers may apply for partial reimbursement of remuneration and social security contributions for a period of up to 12 months.

• New rules for cooperation with employment offices

Employers will gain access to a modernized ICT system for employment services, allowing them to post job offers and browse candidate profiles in real time. In addition, an obligation to actively cooperate with employment offices has been introduced for those using support instruments.

• Changes for the unemployed – more flexible registration and full benefits

Unemployed individuals will no longer be required to register at the employment office corresponding to their place of residence. Instead, they may register at the office appropriate for their actual place of stay.

It will also become possible for those whose benefit entitlement period is less than 5 years to receive 100% of unemployment benefits. Previously, such individuals were only entitled to 80% of the benefit.

People in particularly difficult labor market situations – such as persons with disabilities – will be given priority access to the forms of support offered by employment services.

New requirements for temporary employment agencies

One of the most important changes introduced by the new legislation is a two-year grace period for new employment agencies.

According to Article 305(3) of the Act, employment services and temporary work for foreigners may only be offered after two years from the date of registration of the agency.

In practice, this means that a newly established agency will be limited for two years to employing:

• Polish citizens,
• EU citizens,
• and foreigners exempt from the obligation to obtain a work permit (e.g., holders of a Polish Card or Ukrainian citizens under the notification procedure).

The purpose of this restriction is to prevent the creation of agencies solely intended to gain quick access to foreign labor. However, this may also create a significant entry barrier and could strengthen the market position of already established large entities.

What does this mean for employers?

This amendment marks a step toward a modern labor market based on effective support instruments and balanced activation policies. For employers, it means broader access to funding and services, but also greater responsibilities in terms of documentation and cooperation with public authorities.

Entities operating or using the services of temporary employment agencies should pay particular attention to the new regulations.

For more detailed information on the upcoming changes in labor law, please contact the labor law specialists at our Law Firm at: [email protected]