In Poland, labor law provides for several types of employment agreements, each with unique characteristics and regulations as outlined in the Polish Labour Code.

Employment Contract (Umowa o pracę)

The most prevalent type of employment agreement in Poland is the Umowa o pracę, which provides full employee benefits and protections under the Labour Code. This contract can be further divided based on its duration:

• Contract for a Trial Period (Umowa o pracę na okres próbny): This fixed-term agreement enables employers to evaluate an employee's suitability for the role. The trial period can last up to three months, with the possibility of extension under specific circumstances as defined by the Labour Code.

• Fixed-Term Contract (Umowa o pracę na czas określony): This agreement specifies a predetermined end date for employment, typically up to 33 months. It's often used for seasonal work or project-based positions.

• Indefinite-Term Contract (Umowa o pracę na czas nieokreślony): This is the most secure form of employment, offering no predetermined end date and strong job security measures as outlined in the Labour Code.

Civil Law Contracts

Although not technically employment agreements, civil law contracts offer alternative arrangements for engaging individuals to perform specific tasks. These contracts provide fewer employee benefits and protections compared to the Umowa o pracę. Here are two common types:

• Contract for Specific Work (Umowa o dzieło): This agreement focuses on the completion of a specific task or project with a predetermined outcome. The contract terminates upon successful completion of the task, and social security contributions are not mandatory.

• Mandate Contract (Umowa zlecenie): This agreement outlines the performance of ongoing tasks or services, but without the same level of employee supervision and control as an employment contract. Social security contributions may or may not apply depending on the specifics of the agreement.

Polish employment agreements, particularly the Umowa o pracę (employment contract), should incorporate specific clauses to ensure clarity and compliance with labor laws.

Parties to the Agreement

The agreement must clearly identify both parties involved, including their full names and addresses.

Type and Duration of Employment

Specify whether the agreement is an Umowa o pracę (employment contract) or another type. Clearly define the date on which employment commences. For fixed-term contracts, outline the predetermined end date of the agreement.

Remuneration and Benefits

Specify the employee's gross monthly salary and any additional components like bonuses or allowances. Outline the method of salary payment (e.g., bank transfer) and the frequency of payments (e.g., monthly). If applicable, mention any additional benefits offered, such as paid leave, health insurance, or company car.

Work Duties and Schedule

Clearly define the employee's job title and provide a brief description of their primary duties and responsibilities. Specify the primary place of work, with details about remote working arrangements if applicable. Outline the regular working hours per day or week, including any overtime regulations.

Termination Clauses

Define the required notice period for termination by either party, adhering to the minimum legal requirements.

The Polish Labour Code acknowledges a probationary period as part of an employment contract. This initial phase allows employers to assess an employee's suitability for the role, while also providing the employee with a chance to evaluate the job fit.

Key Characteristics

The primary function of a probationary period is to assess an employee's qualifications and performance against the job requirements. The probationary period cannot exceed three months. In exceptional circumstances, a collective bargaining agreement may extend this period to six months for managerial or senior positions. A probationary period is not mandatory for all employment contracts. Employers can choose to forego it, especially for senior positions or when an employee transfers from within the company.

Termination During Probation

Both the employer and the employee have the right to terminate the employment contract during the probationary period without providing a reason and with a shorter notice period compared to a regular contract. Notice periods during probation are 14 days for the employer and 3 days for the employee. The right to terminate with a shorter notice period during probation does not apply in specific situations, such as dismissal due to employee discrimination or if the termination violates employee rights protected under the Labour Code.

Incorporating a Probationary Period

If you decide to include a probationary period in your employment agreement, ensure it adheres to the stipulations outlined in the Polish Labour Code. Consulting with a legal professional can help you draft a compliant and effective probationary clause.

Polish employment agreements often include confidentiality and non-compete clauses to safeguard the employer's legitimate business interests. However, these clauses have certain limitations and specific requirements for enforceability under Polish law, as outlined in the Labour Code.

Confidentiality Clauses

Confidentiality clauses aim to prevent employees from disclosing the employer's confidential information to unauthorized third parties. This information can include trade secrets, customer lists, or proprietary data.

For a confidentiality clause to be enforceable, it must be specific and reasonable. The clause should clearly define what constitutes confidential information. The scope of restricted information and the duration of the confidentiality obligation must be reasonable and not excessively limit the employee's ability to work in their field after leaving the company.

Even without a formal confidentiality clause, employees have a general legal duty to protect the employer's confidential information throughout their employment.

Non-Compete Clauses

Polish law restricts non-compete clauses that completely prohibit an employee from engaging in any competitive activity after leaving the company. This protects the employee's right to work and choose their profession.

Non-compete clauses can be enforceable if they are narrowly tailored to protect the employer's legitimate business interests. This may include restrictions on competing with the employer for a specified period after termination or soliciting the employer's clients or employees within a defined timeframe and geographical area.

For a non-compete clause to be legally binding after the employment ends, the employer must compensate the employee for the restricted period. The compensation cannot be less than 25% of the employee's monthly salary during the non-competition period.