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Poland

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Poland

Notice period

In Poland, the Labour Code outlines the notice period requirements for terminating both definite and indefinite employment contracts. The length of the notice period is determined by the employee's length of service with the employer.

Notice Periods Based on Length of Service

For employees who have been with the company:

  • Less than 6 months: The notice period is 2 weeks.
  • At least 6 months: The notice period is 1 month.
  • At least 3 years: The notice period is 3 months.

These rules apply whether the termination is initiated by the employer or the employee.

Notice Periods During Probation

For probationary employment contracts, the notice period structure is different:

  • Up to 2 weeks probation: 3 working days' notice.
  • More than 2 weeks but less than 3 months probation: 1 week's notice.
  • 3 months probation: 2 weeks' notice.

Additional Considerations

  • The employer has the option to reduce the 3-month notice period to a minimum of 1 month, but the employee is entitled to compensation for the remaining notice period.
  • Both the employer and the employee can agree to shorten the notice period after the termination notice has been served. However, this doesn't change the fact that the termination was initiated by the employer, and no compensation is required in such cases.

Severance pay

In Poland, severance pay is legally mandated only in specific circumstances, primarily in the context of collective and individual redundancies.

Collective Redundancies

Collective redundancies are situations driven by factors unrelated to individual employees, such as economic difficulties or organizational restructuring. These are defined in the Act of March 13, 2003, on Special Rules for Terminating Employment Contracts for Reasons Not Relating to Employees (Collective Redundancies Act).

Severance pay in collective redundancies applies to employers with at least 20 employees under employment contracts. Payments are based on the length of service of the employee:

  • Less than 2 years employment: 1 month's salary
  • 2 to 8 years of employment: 2 months' salary
  • 8+ years of employment: 3 months' salary

Individual Redundancies

In the case of individual redundancies due to factors not related to the employee, additional compensation might be negotiated based on the employment contract, but it is not legally required.

Other Termination Scenarios

  • Termination by Employer During Trial Period: No legally required severance pay.
  • Termination by Mutual Agreement: No legally required severance pay, although contractual agreements between the parties may include it.
  • Termination for Cause by Employer (Employee at Fault): No severance pay.
  • Non-Renewal of Fixed-Term Contract: No legally required severance pay, though contractual severance may exist.

Important Considerations

  • Severance pay cannot be unilaterally reduced by an employer in collective redundancies.
  • Severance amounts are capped at a maximum of 15 times the national minimum wage.

Termination process

In Poland, labor law provides several ways to legally terminate an employment relationship. The specific process depends on the type of contract and termination circumstances.

Termination by Mutual Agreement

Both employer and employee can mutually agree to end the contract at any time, as per Article 30 § 1 of the Polish Labour Code. The agreement must be in writing and specify the termination date. There is no notice period requirement in this scenario.

Termination with Notice

Both employer and employee must provide written notice according to the legally mandated periods based on seniority, as per Article 36 § 1 of the Labour Code. The employment relationship terminates at the end of the notice period. Employers must provide a written justification for termination as per Article 30 § 4 of the Polish Labour Code. Employees don't need to provide reasons.

Termination Without Notice (Disciplinary Termination)

This method allows for immediate employment termination due to serious misconduct by the employee, as per Article 52 § 1 of the Labour Code, or loss of necessary qualifications. The termination notice must state specific and valid reasons for the immediate termination. An employee has 21 days to appeal a termination without notice in a labor court, as per Article 264 of the Labour Code.

Expiration of a Fixed-Term Contract

A fixed-term contract (contract for a definite period) ends automatically on its expiration date without any notice requirement, as per Article 30 § 1 of the Labour Code.

Additional Considerations

Employers must grant time off to employees seeking new employment during their notice period, as per Article 37 § 2 of the Labour Code. Polish law provides termination protection for certain groups of employees, such as pregnant women and those on parental leave.

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