Employment Contract in Poland - Complete Guide

Last updated: 05.11.2025 

Employment Contract in Poland – Comprehensive Guide

An employment contract is a basic legal document regulating the employer employee relationship, defining the rights and obligations of both parties to the employment agreement.

In this guide, you will learn what an employment arrangement is, what its mandatory elements are, what types of employment contracts exist, and what employment costs will incur in connection with hiring a new employee.

What Is an Employment Contract in Poland?

An employment contract regulates the employment relationship, which consists of the following key responsibilities:

• employee – to perform work of a specific type for the employer and under their management, at a place and work schedule designated by them.
• employer – to pay remuneration for the work performed.

The rights and obligations of the parties to the employment relationship are extensively regulated in the Employment Law of Poland and in particular the Labour Code of Poland.

Unlike other forms of employment based on civil law contracts (contracts of mandate or contracts for the provision of services), an employment contract guarantees the employee a number of rights, such as the right to paid holiday leave, sick pay, severance pay, and sick leave benefits, as well as job security.

Employment Contract – Forms of Conclusion in Poland

Employment contracts should be concluded in writing. A written employment contract ensures legal clarity and avoids potential disputes regarding terms and conditions.”

Verbal agreements, although rare in practice, are valid – however, in such cases, the employer is required to confirm the terms and conditions of employment in writing before the new hire starts work. An employment contract may also be concluded in electronic form, but in this case, both parties must sign the contract with a qualified electronic signature.

In Poland, only electronic signatures that meet the conditions of the eIDAS Regulation are acceptable and are considered equivalent to a written form.

Ordinary electronic signatures (including popular DocuSign) are not acceptable as a valid form of concluding an employment contract.

What are the mandatory elements of employment contract in Poland?

According to the Polish Labor Code, a properly drafted employee’s contract must include:

• Parties to the contract – identification of the employer and employee, their identification details.
• Type of work – specification of the type of work performed, which should be adapted to the actual nature of the employee’s duties.
• Place of work – this may be a specific place (e.g., the town where the company is based), but it is also possible to specify that the work will be performed in a certain area, e.g., in the Wielkopolska province.
• Remuneration – corresponding to the type of work, including a description of the components of remuneration such as base salary, bonuses, commissions, or incentive pay. Remuneration should be specified as a gross amount, and the frequency of payment (e.g., monthly, weekly) and the date of payment should also be indicated.
• Date of conclusion of the contract
• Start date of work – the exact date of commencement of the employment relationship.
• Working time – specification of whether the position is for full time employees or part time employees.
• Duration of the contract – in the case of a fixed-term contract.
• Expected duration of the next contract – in the case of trial period contracts concluded for a period shorter than 3 months.

In addition to the above elements, an employment contract may contain additional provisions that specify the employment relationship between the parties.

In addition to the employment contract, the parties may also conclude additional agreements, e.g., a confidentiality agreement or a non-competition agreement after termination of employment.

Choice of law applicable to employment agreement

In most typical situations, employment contracts concluded in Poland are based on Polish law. However, it should be remembered that the parties to an employment contract are free to choose the law of another country if it is relevant to their legal relationship.

However, the choice of foreign law for employment contracts concluded in Poland does not exclude the application of most provisions of Polish law to them. This is due to the fact that the choice of law cannot deprive the employee of the protection to which they are entitled under the provisions of law that would apply if no choice had been made, and which are mandatory, i.e., cannot be waived by agreement between the parties.

However, the parties to an employment agreement cannot exclude the jurisdiction of Polish courts by opting for foreign arbitration or other at will dispute resolution forums.

Clauses & Agreements Usually Accompanying the Employment Contract

• Non-competition agreement

The parties to a legally enforceable employment agreement may regulate clear expectations regarding non-competition both during and after the termination of employment. The employee may be required to refrain from activities competitive to the employer even after the employee leaves the organization.

Importantly, a non-competition agreement must be executed in writing and must specify precisely and specifically what competitive activities the employee is prohibited from engaging in.

If the employer decides to impose a non-competition clause after the termination of the employment relationship, in order for it to be valid, they should pay the former employee compensation for refraining from competitive activity for a specified period of time, in an amount not lower than 25% of the remuneration received by the employee before the termination of the employment relationship for a period corresponding to the duration of the non-competition clause.

The basis for determining the amount of compensation includes all components of remuneration actually paid to the employee during a given period, such as basic salary, bonuses, awards, allowances (e.g., functional), overtime pay, etc. Compensation is most often paid to the former employee in monthly installments.

Employers usually decide on a non-competition clause after the termination of employment for a period of six months to one year, although there are longer clauses binding on the employee for a period of two or three years.

Regulations provide that the non-competition clause shall cease to apply before the expiry of the term for which the non-competition agreement was concluded if:

• the reasons justifying the non-competition clause after the termination of employment cease to exist,
• or the employer fails to fulfill its obligation to pay compensation for the non-competition clause.

• Agreement on entrusting property to an employee

The employee is financially liable for damage caused to the employer in the performance of their duties in accordance with general principles and is liable for property entrusted to the employee with the obligation to account for or return it, on the basis of an additional agreement with the employer.

Sometimes the employer decides to entrust the employee with property with the obligation to account for or return it, e.g., money, securities, valuables, valuable company equipment, or a company car.

The employer and employee must follow proper steps: sign a written property transfer agreement and prepare a hand-over protocol confirming the condition and value of the items.

The employee is fully liable for damage to the entrusted property, regardless of whether the damage was caused intentionally or unintentionally, unless the parties to the agreement regulate this differently.

The employee may be released from liability if he or she proves that the damage to the entrusted property was caused by reasons beyond his or her control, in particular as a result of the employer’s failure to provide conditions enabling the entrusted property to be secured.

• Training agreement

The parties to the employment relationship may also decide that the employer will bear part or all of the costs of additional education or training for the employee. These may include, for example, postgraduate studies or courses to improve the employee’s qualifications.

In the training agreement, the parties should specify the conditions for the employer’s co-financing of the training costs, the rules of the employee’s work and possible leave of absence for the duration of compulsory classes, as well as possible rules for the reimbursement of co-financing costs in the event of termination of the employment contract, or the obligation to remain in employment for a specified period of time after completion of the training.

Types of employment contracts in Poland

• Probationary employment contract – used to assess the employee’s qualifications and skills before signing a fixed-term or indefinite contract. It can last up to 3 months.
• Fixed-term contract – may be concluded with any employee, but with a limit of 33 months of total employment under such a contract/contracts or a limit of 3 such contracts concluded with one employee. It may be concluded, for example, for the period of replacement of an employee on sick leave or during a period of increased demand on the part of the employer. Termination of such a contract by the employer before the expiration date indicated in the contract, requires justification and compliance with notice periods.
• Permanent contract – this is the most commonly used form of employment contract, giving the employee job stability. Termination of such a contract by the employer requires justification and compliance with notice periods.

Probationary employment contract in Poland

Characteristics: A probationary employment contract is intended to assess the employee’s qualifications and skills before signing a fixed-term or indefinite employment contract. This is a period during which both the employer and the employee can assess whether the cooperation will be successful. The probationary period cannot exceed 3 months, which means that it is a short-term form of employment. The contract must be concluded in writing.

A probationary period contract must specify its duration or end date and, if the parties so agree, a provision for extending the contract for the duration of vacation or other justified absence of the employee from work.

A probationary employment contract must be separate from a fixed-term or indefinite employment contract. Elements from other types of contracts cannot be mixed in a single employment contract.

Terms of the contract: The employee has the same rights as an employee hired under a fixed-term or indefinite employment contract and is therefore entitled to paid holidays, at least the minimum wage, protection against discrimination, etc.

Duration: Up to 3 months – this is the maximum duration of a trial period employment contract. It may be concluded for a shorter period, e.g., 1 or 2 months, depending on the employer’s needs.

At the end of the probationary period, if the employer decides to continue the employment relationship, they may offer the employee a fixed-term or indefinite contract.

Termination of the contract: As with fixed-term or indefinite contracts, a trial period contract can be terminated by both the employer and the employee, but the termination procedure is simplified:

• For a trial period contract of up to 2 weeks, the notice period is 3 working days.
• For a trial period contract of 2 to 3 months, the notice period is 1 week.
• In both cases, the employer or employee has the right to terminate the contract without cause during the trial period.

Fixed-term employment contract in Poland

Characteristics: A fixed-term employment contract is concluded for a predetermined period of time, e.g., for 6 months or a year, or for the purpose of carrying out a specific project, seasonal work, substitution, etc. It is also often concluded when the trial period has proved too short to fully assess the employee’s suitability for the job and the employer needs additional time before committing to a permanent contract. This contract does not involve a long-term commitment, but also provides the employee with a certain degree of job stability for a fixed period of time.

Duration: The total number of fixed-term contracts concluded with the same employee may not exceed three, and the total period of employment may not exceed 33 months (once at least of these limits is exceeded, the contract becomes a permanent contract).

Terms of the contract: The employee has the same rights as in the case of permanent employment. The contract should be concluded in writing and contain all mandatory elements, including the period for which it was concluded or the start and end dates of employment.

Termination of the contract: The notice period for a fixed-term employment contract depends on the length of the employee’s employment:

• 2 weeks – if the employee has been employed by the employer for less than 6 months.
• 1 month – if the employee has been employed by the employer for 6 months to 3 years,
• 3 months – if the employee has been employed by the employer for 3 years or more.

It should be remembered that in the case of termination of fixed-term (as well as indefinite) employment contracts, the reason justifying the termination or dissolution of the employment contract must be indicated.

The reason must be clear and specific, and therefore understandable to the employee. The employer must present the employee with a written statement of termination with a handwritten signature or in electronic form with a qualified electronic signature.

The contract may also be terminated by mutual agreement or without notice (so-called disciplinary termination) if there has been a serious breach of employee obligations, the employee has committed a crime, or has lost the right to practice their profession. The contract may also be terminated without notice if the employee is absent from work for a long period of time.

Permanent employment contract in Poland

Characteristics: A permanent employment contract is the most stable form of employment for both the employee and the employer. The employee is guaranteed long-term employment, unless one of the conditions for termination of the contract is met (e.g., termination for reasons attributable to the employee or employer).

Duration: an indefinite period, meaning that the employment continues until either party terminates it in accordance with the Labor Code.

Terms of the contract: The employee has all the rights to which they are entitled under the Labor Code. The contract should be concluded in writing or in electronic form with qualified electronic signatures. The contract must contain all the mandatory elements specified in the Labor Code and may also contain optional elements such as a non-competition clause during and after the termination of employment.

Termination of the contract: The notice period for an indefinite employment contract depends on the length of the employee’s employment:

• 2 weeks – if the employee has been employed by the employer for less than 6 months.
  1 month – if the employee has been employed by the employer for 6 months to 3 years,
• 3 months – if the employee has been employed by the employer for 3 years or more.

When terminating permanent employment contracts, the reason for the termination or dissolution of the employment contract must be stated. The reason must be clear and specific, and therefore understandable to the employee.

The employer must present the employee with a written statement of termination, signed by hand or in electronic form with a qualified electronic signature. The contract may also be terminated by mutual agreement or without notice (so-called disciplinary termination) if there has been a serious breach of employee obligations, the employee has committed a crime, or has lost the right to practice their profession. The contract may also be terminated without notice if the employee is absent from work for a long period of time.

Termination of employment contracts in Poland

Employment termination checklist

Before terminating an employment contract with an employee in Poland, the employer should:

• decide on the method of termination (termination with or without notice, and whether the employee will be offered an alternative in the form of an agreement between the parties),
• verify the existence of factual and legal grounds justifying the termination of the contract in a specific manner,
• fulfill the obligations preceding the termination of the contract (e.g., verify that the employee is present at work, that the employee’s employment relationship is not subject to special protection, consult with trade unions, if required),
• sign the documents terminating the contract (handwritten signature or qualified electronic signature),
• schedule a meeting with the employee or determine another legally permissible method of delivering the statement of termination of the contract.

Forms of Employment Termination in Poland

Mutual Termination Agreement

The parties to the employment relationship are free to decide on the terms of termination of the employment contract, regardless of its type and regardless of the special protection of the employment relationship. An agreement to terminate an employment contract may be concluded in any form, but it is recommended that it be in writing for evidentiary purposes.

Termination of an employment relationship by mutual agreement in Poland is also permissible during periods of special protection against dismissal, as the law protects the employee only against unilateral action by the employer aimed at terminating the employment relationship.

Consequently, there are no restrictions on concluding an agreement on the termination of an employment contract, e.g., during annual leave, sick leave, pregnancy, parental leave, for employees approaching retirement age or workers who are protected members of a trade union.

When concluding an agreement between the parties on the termination of the employment relationship, the parties usually decide in the content of the agreement:

• whether the employment relationship will be terminated upon conclusion of the agreement or on another, future date,
• whether the employee will be required to perform work until the agreed date of termination of the contract or whether they will be released from the obligation to perform work while retaining the right to remuneration for the last period of work
• on the use of outstanding vacation leave in kind (otherwise, an equivalent payment will be required)
• whether, under the agreement, the employee will receive other payments, including additional compensation in connection with the termination of the employment contract
• the termination/maintenance of any additional agreements, e.g., regarding confidentiality or non-competition.

In practice, a termination agreement is often offered by employers as an alternative to termination of the employment contract with or without notice.

Employers may grant the employee additional benefits in the agreement or make the employee’s situation more favorable compared to the termination option in order to persuade the employee to sign the agreement and thus eliminate the risk of a potential legal dispute due to the employee’s appeal against the termination of the contract.

Regular Employment Contract Termination (Termination with Notice Period)

An employment contract may be terminated by either party (the employer or the employee) in the ordinary manner, i.e., with notice. It is worth noting that an employment contract, regardless of its type, may be terminated with statutory notice periods, the length of which depends on the employee’s length of service with the employer.

A characteristic feature of ordinary termination is that the contract is terminated upon expiry of the statutory notice period.

Form of termination:

• The letter terminating the employment contract should be drawn up in writing
• The written form is understood to be a letter in paper form with a handwritten signature of the employer or an authorized person, or
• A form equivalent to the written form is acceptable, i.e., a letter in electronic form with a qualified electronic signature of the employer or an authorized person

Delivery of the statement:

• In fact, the letter terminating the contract should be delivered to the other party in person
• However, the termination may also be delivered in another form (under certain conditions): as a registered letter sent to the mailing address or by mail, a statement with a qualified electronic signature sent by email.

Reason for termination:

• The notice of termination should contain a real, specific, and understandable reason (this obligation applies to the termination of both fixed-term and indefinite employment contracts).

Instruction:

• The notice of termination of an employment contract should contain information about the employee’s right to appeal against the termination to the competent labor court.

Consultation of the termination with trade unions

The employer shall notify the trade union representing the employee in writing of its intention to terminate a fixed-term or indefinite employment contract, stating the reason for the termination.

If the trade union organization believes that the termination would be unjustified, it may notify its reasoned objections in writing to the employer within 5 days of receiving the notification. The employer is not bound by the opinion of the trade union, but should make a decision on the termination after considering the position of the trade union organization.

Notice periods in employment termination

The notice periods for employment contracts are specified in the Labor Code, and the employer may not modify them in a manner unfavorable to the employee. The notice period applicable to a given employee depends on their length of service (i.e., the total period of employment with a given employer) and may be:

It is worth remembering that employment contracts concluded for a trial period have different, shorter notice periods, which are:

• 3 working days – when the trial period does not exceed 2 weeks,
• 1 week – when the trial period is longer than 2 weeks
• 2 weeks – when the trial period is 3 months.

Disciplinary Termination of Employment Agreement (Termination without Notice)

Termination of an employment contract in the so-called disciplinary mode can only take place if there is a specific reason, i.e., if the employee:

• seriously violates their basic duties,
• commits a crime during employment that makes it impossible to continue employment in their position, if the crime is obvious or has been confirmed by a final court judgment,
• loses the qualifications required to perform the duties related to their position.

Poland’s labor law (the Labor Code) does not provide a legal definition of a “serious” breach of basic employee obligations. In the event of a court dispute, the reason indicated by the employer as the grounds for immediate termination of the contract will be assessed by the labor court.

Nevertheless, it is pointed out that disciplinary termination of the contract should be used in exceptional cases, with particular caution. Case law indicates that reasons for termination of the contract without notice include theft, working under the influence of alcohol, or leaving (abandoning) the workplace.

A characteristic feature of this type of termination is that the employment contract is terminated immediately upon delivery of the employer’s statement, i.e., without notice.

Disciplinary Termination by the Employee

In accordance with the provisions of the Labor Code, an employee may also terminate an employment contract on disciplinary grounds, i.e., with immediate effect, if the employer has committed a serious breach of its basic obligations towards the employee (e.g., neglected its obligation to pay remuneration or failed to provide the employee with safe and hygienic working conditions).

In the event of termination of the employment contract in this manner, the employee is entitled to compensation in the amount of remuneration for the notice period, and in the case of a fixed-term contract – for the period for which the contract was to last, but not longer than for the notice period.

The employee’s statement of termination of the contract should be made in writing and indicate the reason for the termination. Importantly, termination of the contract by the employee in this manner cannot take place after 1 month from the date on which the employee learned of the reason justifying the termination of the contract.

An employee may also terminate an employment contract without notice if a medical certificate is issued stating that the work performed has a harmful effect on the employee’s health and the employer does not transfer the employee to another position (appropriate to their health and professional qualifications) within the period specified in the certificate.

If the employer considers the termination of the contract to be unjustified, they may claim compensation. Compensation is awarded by the labor court and is equal to the employee’s remuneration for the notice period, and if the employment contract was concluded for a fixed term, for the period until the expiry of the contract, but not more than for the notice period.

Termination of the contract without notice due to the employee’s prolonged absence from work

The Labor Code also allows for the possibility of terminating an employment contract with an employee with immediate effect for reasons not attributable to the employee, i.e., when the employee cannot be blamed for the reasons underlying the decision to dismiss them.

In the interest of the workplace and for justified reasons, the employer may terminate the employment relationship without notice in the following cases:

• prolonged justified absence from work due to illness lasting:
  • longer than 3 months – if the employee has been employed for less than 6 months,
  • longer than the total period of receiving remuneration and allowance for this reason and receiving rehabilitation benefits for the first 3 months – if the employer has employed the employee for at least 6 months or the inability to work is caused by an accident at work or an occupational disease,

• justified absence of the employee for reasons other than those listed above, lasting longer than one month.

Employment contract – employment costs

When deciding to hire an employee on the basis of an employment contract, the employer should be aware that the employee’s remuneration specified in the contract is not the only cost that the employer will incur.

Employers are required to pay, among other things, social security contributions, health insurance, and pension fund contributions. In addition, the employer pays an advance income tax from the remuneration each month.

When discussing the remuneration of an employee hired under an employment contract, the employer must take into account three amounts:

• the employee’s gross remuneration – which will be specified in the contract;
• the employee’s net salary – the salary that the employee will receive in their bank account after mandatory deductions,
• the total cost to the employer – the final cost that the employer will incur in connection with the employment.

The total cost to the employer is always higher than the gross remuneration specified in the contract, as part of the employment costs are borne exclusively by the employer and are not deducted from the employee’s remuneration.

Salary in Poland: Gross vs net remuneration

The employee’s gross salary is the salary specified by the employer in the contract.

In Poland, it is most often expressed in monthly amounts.

When determining the gross salary, the employer should calculate the net salary that the employee will receive after contributions have been deducted, as well as the total cost of employment. The employer usually determines the gross salary based on their own budget, the employee’s qualifications, and the average market salary for a given position.

Net remuneration is the amount that the employee will receive in their bank account after the employer has made the appropriate deductions for the Social Insurance Institution (ZUS) and the tax office. The net amount may vary from month to month – it is influenced by various factors such as the amount of tax paid (after exceeding the tax threshold of PLN 120,000, the employee pays a higher tax), as well as factors related to the employee’s situation (e.g., being on sick leave in a given month).

Therefore, in conversations with employees and job advertisements, the employer should always refer to the gross amount that will be included in the contract. Otherwise, this may cause unreasonable expectations on the part of the employee.

What are the total costs of employing an employee in Poland?

In addition to contributions and advances, which are deducted from the remuneration agreed with the employee in the contract, the employer is obliged to pay additional amounts towards social security contributions. The economic burden of these contributions rests with the employer, which means that the employer “adds” the portion of the contributions attributable to them to the gross amount specified in the contract.

Such contributions include:

• pension contribution – 9.76% of gross salary,
• disability contribution – 6.50% of gross salary,
• accident contribution – 1.67% of gross salary,
• contribution to the Labor Fund (FP) – 2.45% of gross salary,
• contribution to the Guaranteed Employee Benefits Fund (FGŚP) – 0.10% of gross remuneration,
• contribution to Employee Capital Plans (PPK) – 1.50% of gross remuneration.

These are costs incurred in addition to the gross salary, and therefore constitute an additional cost of employing an employee for the employer, apart from the gross salary.

Total cost to the employer in Poland – sample calculation

Please provide a sample calculation of the total cost to the employer for a gross monthly salary of PLN 8,000.

If you need help with your calculations, we encourage you to use our tax calculator here.

Employment contract vs contract of mandate in Poland

As a future employer, you are probably wondering what form of employment to offer your employees. Is it better to choose a contract of mandate or an employment contract?

Without a doubt, an employment contract is better for the employee and provides greater stability. An employment contract may also be beneficial for the employer, even though the risks associated with it are higher than with a contract of mandate. Let’s compare these two forms of employment.

Contract of mandate

A contract of mandate is a civil law contract under which the contractor performs specific tasks or activities for the ordering party. This contract is not subject to the Labor Code, which gives the parties more freedom and is less burdensome for the employer.

In the case of employing an employee under a contract of mandate, where the remuneration is their only source of income, the costs incurred by the employer will be the same as in the case of an employment contract, as such a person will be covered by compulsory social and health insurance and contributions to the Labor Fund and the Guaranteed Employee Benefits Fund.

If the contractor works on the basis of several contracts of mandate at the same time, they are subject to compulsory social insurance only on the basis of one contract of mandate, usually the one concluded earliest.

However, subsequent contracts of mandate for that person may be exempt from social security contributions if they receive at least the minimum wage under the first or another specified main contract. In this case, the employer only bears the costs of gross remuneration.

IMPORTANT: Persons under 26 years of age who are students are exempt from paying insurance contributions, which means that in their case, the employer will not pay contributions and the gross amount will also be the net amount.

If the employer decides to hire an employee on the basis of a contract of mandate, they should also remember that in this case, the minimum hourly wage applies to contracts of mandate. In 2025, it is PLN 30.50 gross per hour.

Advantages and disadvantages of an employment contract and a contract of mandate in Poland

Summary

Conclusions:

• An employment contract is better if the employer is looking for employment stability, long-term commitment from employees, and full legal protection. It is a suitable form for employers who plan long-term employment and employee development.
• A contract of mandate is suitable in cases where the employer needs flexibility, lower employment costs, and easier termination of the contract. It is a suitable solution for companies operating in industries that require variable employment (e.g., short-term projects, seasonal work, casual work).

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