Social benefit fund in Poland
Social benefit fund, also called as Fund, is a separate bank account, on which employer gather funds which are intended to be spent as a social benefits for entitled employees.
Obligatory social benefit fund or holiday benefit
The Fund is obligatory for all budgetary and local government units, as well as for employers who employ at least 50 employees on a full time basis on January 1st of each calendar year. Employers of less then 50 employees are obliged to pay the holiday benefit instead of creating the Fund.
The employers who employ less than 50 employees on a full time basis on January 1st of each calendar year are allowed to establish the Fund or pay the holiday benefit for each employee who takes a holiday leave of at least 14 consecutive days. Nevertheless, on certain conditions the employer may opt-out from obligation of establishing F and opt-out from obligation to pay the holiday benefit.
Opting out from obligation to create the Fund and pay the holiday benefit
If employer who employs at least 50 employees is covered by collective arrangement, then information on non-creating the Fund and lack of holiday benefit shall be included in provisions of such collective arrangement. Otherwise, such information shall be included in remuneration rules.
The employer who employs less then 50 employees shall communicate the information on non-creating the Fund and lack of holiday benefit until January 31st of each calendar year. Such notification can be provided in a customary manner at the workplace, i.e.:
- by notification in writing addressed to each employee separately,
- by e-mail correspondence,
- by posting relevant notification on notice board.
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