End of commission contracts for foreigners: Work in Poland only on a permanent basis?
Poland’s government is planning to introduce an amendment to the law, which would limit the possibility of obtaining a work permit only to situations in which a foreigner is hired on the basis of an employment contract. The bill, published on May 23, 2024 by the Government Legislation Center, is currently under discussion. Read this article to learn more!
New law on the way: No more civil contracts for foreigners
The main goal of the changes is to tighten the migration system, eliminate loopholes that have been exploited by companies to fictitiously employ foreigners, and simplify procedures related to legalizing the work of foreigners. The new regulations are also expected to promote the digitization of work permit processes, which will make it easier for employers and foreigners to handle the paperwork.
No job, no work – changes in work permits for foreigners
In Article 6(1) of the proposed law, a work permit is issued if a foreigner:
- will perform work in the territory of Poland on the basis of an employment contract with a Polish entity trustor of work toa foreigner, and in the case of directing this foreigner by an entity trustor of work to another entity – on the basis of an employment contract concerning temporary work with a Polish entity trustor of work to a foreigner being a temporary work agency (the so-called type A work permit for most employees), or
- while staying on the territory of Poland, will perform a function in the management board of a legal person entered in the register of entrepreneurs of the National Court Register or a capital company in organization, or will represent a limited partnership or a limited joint-stock partnership, or will manage the affairs of such a company, or will act as a proxy (work permit for a member of the management board or a proxy), or
- is an employee of a foreign entity and will be delegated to the territory of Poland to perform work (work permit for a delegated employee), or
- will perform work in the territory of Poland within the scope of activities specified in regulations issued pursuant to Article 43(2) (seasonal work permit).
This means that civil law contracts, such as a contract of mandate, will no longer entitle to a work permit. The changes also include declarations of entrustment of work, which will also only be issued if a foreigner is employed under a labor contract. Otherwise, the labor assignment statement will not be registered.
Employers concerned about new regulations – will employment flexibility disappear?
In the context of the widespread discussion of the amendment, such significant changes as the elimination of the obligation to obtain information from the starost and the full electronification of the procedures for issuing work permits (through the labor.gov.pl portal) require extensive consultations, especially with employers’ organizations. This is crucial because the phenomenon of migration in Poland is becoming increasingly common, and Polish employers are increasingly using foreigners.
Employers point out that the introduction of a ban on the provision of work on the basis of civil law contracts will reduce the flexibility of employment of foreigners, especially students. Often these contracts are associated with an attempt to circumvent labor regulations or illegal employment, but employers fear that the new regulations could lead to an increase in the so-called “ shadow economy.
If you are planning to hire foreigners and are concerned about the new regulations, our experienced migration lawyers will be happy to provide support and individual consultations to help you adjust to the upcoming changes.