Understanding Contract Termination for Temporary and Fixed-Term Workers in Poland

When hiring employees in Poland, it’s important to understand the different types of employment contracts available and how each one affects your rights and obligations as an employer. In general, Polish labour law recognises three main types of employment agreements: permanent contracts, fixed-term contracts, and temporary agency contracts.

For international companies expanding into Poland or managing cross-border teams, knowing how these contracts work is essential. The rules around ending a contract can vary significantly depending on the contract type, and failing to follow the correct procedure can lead to legal and financial risks.

Overview of employment contracts in Poland

Polish labour law provides several contract types that employers can use, each with its own legal framework and implications. Understanding the differences between them helps ensure compliance and enables employers to structure their workforce in a way that aligns with business needs.

Permanent contract (Umowa o pracę na czas nieokreślony)

This is the standard form of employment in Poland and offers the highest level of job security for the employee. It does not have a defined end date and can only be terminated in accordance with strict rules regarding notice periods and justification. Employers must provide a valid reason for termination and, in many cases, pay severance. This contract type is best suited for long-term roles where continuity and employee retention are key priorities.

Fixed-term contract (Umowa o pracę na czas określony)

A fixed-term contract is valid for a specific period or until the completion of a defined task. While it offers many of the same protections as a permanent contract, it ends automatically at the agreed-upon date, unless extended or renewed.

Under Polish law, an employer can sign up to three consecutive fixed-term contracts with the same employee, with a combined maximum duration of 33 months. If either of these limits is exceeded, meaning a fourth contract is signed or the total duration surpasses 33 months, the employment relationship is automatically considered a permanent contract by law.

One important advantage for employers is that, in most cases, no severance pay is required when a fixed-term contract ends, making it a more flexible option for short-term or project-based work. This structure allows businesses to meet temporary needs while maintaining cost control and compliance.

Temporary agency contract

Temporary workers are typically employed by an external agency and assigned to work for the client company. In this arrangement, the agency is the legal employer, responsible for the employment contract, payroll, and social security contributions. The client company manages the day-to-day work but is not liable for termination procedures or severance pay when the assignment ends. This model is especially attractive for companies that need to scale operations quickly or cover seasonal demand, without taking on long-term employment commitments.

Termination of fixed-term contracts

One of the key advantages of fixed-term contracts in Poland is the clarity they offer when it comes to ending the employment relationship. These contracts are designed to expire automatically at the end of the agreed period or upon completion of a specific task. While fixed-term contracts can be ended early, this is only possible under certain conditions:

• By mutual agreement between the employer and employee
• For disciplinary reasons (with immediate effect, in justified cases)
• If a termination clause has been included in the contract that allows for early notice by either party

It’s important to note that employers are generally not required to pay severance when a fixed-term contract ends, unless the termination is part of a collective redundancy process or other exceptional circumstances apply. This stands in contrast to permanent contracts, which often come with additional financial obligations upon termination.

Fixed-term contracts versus permanent contracts

Termination of temporary contracts

Temporary workers in Poland are usually hired through a staffing agency, which acts as the legal employer. The client company,  often referred to as the user employer, manages the worker’s tasks and daily responsibilities but does not enter into a direct employment relationship.

When it comes to termination, this arrangement offers a high degree of flexibility for the client. Since the employment contract is between the agency and the worker, the end of the assignment typically brings the employment relationship to a close without the need for additional formalities from the client’s side.

In most cases:

• There is no severance pay owed by the client company when the assignment ends.
• The termination procedure is handled by the agency, reducing the administrative and legal burden on the client.
• Assignments can often be ended early by following the terms agreed upon with the agency, offering even more adaptability.

This setup can be particularly beneficial for companies dealing with seasonal demand, project-based work, or short-term operational needs. It allows for fast onboarding, minimal exit procedures, and clearer cost control, all while staying in line with Polish labour law.

When to use fixed-term or temporary contracts

Fixed-term and temporary contracts can be valuable tools for building a flexible and efficient workforce. They are especially useful in the following situations:

• Short-term projects: When you need to bring in additional support for a limited period, such as during product launches, system migrations, or client-specific assignments.
• Seasonal demand: For industries with peak periods, like retail, logistics, or tourism, temporary staffing helps manage fluctuations without long-term commitments.
• Trial periods for new roles: When testing the necessity or structure of a new position, a fixed-term contract can serve as a lower-risk way to evaluate the role before making it permanent.
• Roles with uncertain long-term need: If you’re unsure about the duration of a project, funding, or workload, short-term contracts allow you to scale your team up or down more easily.

By using the right contract type for each situation, employers can stay agile, control costs, and ensure compliance with Polish labour law.

Building a workforce in Poland

Understanding the different employment contract types in is essential for any company looking to build a compliant and cost-effective workforce. Fixed-term and temporary contracts, in particular, offer flexibility and predictability that can be highly beneficial when managing short-term roles or uncertain project timelines.

By aligning your workforce strategy with local labour law, you not only reduce legal risks but also gain more control over employment costs and operational agility.

At Parakar, we help international companies navigate Polish employment regulations with ease. Whether you’re hiring permanent staff or need temporary support, our local HR experts are here to guide you through the process.

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