Your Guide to Employer of Record (EOR) in Poland

Expanding your team into Poland can be complex but it doesn’t have to be. An Employer of Record (EOR) allows you to hire top talent in Poland without the need to set up a local entity. In this FAQ, we explain how EOR services work, when they’re the right solution, and what to expect when hiring in Poland through an EOR like Parakar.

How EOR works: Key questions aswered

1. What is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that legally employs staff on behalf of your company in a specific country. While your business manages the employee’s daily tasks and performance, the EOR handles all employment-related responsibilities, such as contracts, payroll, taxes, and compliance with local labor laws. This allows you to hire in countries where you don’t have a legal entity.

2. When should a company consider using an EOR?
An EOR is especially useful when:

• You want to hire talent in a country where you don’t have a local entity.
• You need to hire quickly without going through a long and complex company registration process.
• You want to ensure compliance with local employment laws and tax regulations.
• You’re testing a new market before making a long-term investment.
• You need temporary or project-based hires abroad.

3. What are the benefits of using an EOR?

• Full compliance with local labor laws and tax requirements.
• Faster hiring timelines compared to setting up your own entity.
• Reduced administrative workload for HR and payroll.
• Lower costs and risks compared to establishing a company abroad.
• Access to local HR expertise and guidance.

4. What is the difference between an EOR and a staffing agency / PEO / payroll provider?

• Staffing agency: Focuses on recruiting and placing candidates, often for short-term or temporary roles, but usually does not act as the legal employer.
• PEO (Professional Employer Organization): Offers HR outsourcing services but typically requires you to have your own legal entity in the country.
• Payroll provider: Manages salary payments and related administration but does not take on the legal employer role.
• EOR: Legally employs the worker on your behalf, handling all compliance, contracts, and payroll, so you don’t need a local entity.

5. Who is the legal employer when using an EOR?
The EOR is the legal employer on paper and is responsible for contracts, payroll, and compliance. However, you remain in control of the employee’s day-to-day work, goals, and performance.

6. Is the employee on our payroll or the EOR’s payroll?
The employee is on the EOR’s payroll. The EOR processes salary payments, handles tax deductions, and ensures all statutory contributions are made according to local laws.

7. Can we hire both local nationals and foreign employees through EOR?
Yes. EOR services can cover both local nationals and foreign employees. For foreign hires, additional visa or work permit requirements apply, and the EOR can often support with the application process.

Hiring in Poland through an EOR

1. Can a foreign company hire employees in Poland without setting up a legal entity?

Yes. An Employer of Record (EOR) is a company that formally employs employees on behalf of another company. In practice, this means that the EOR handles all employment-related formalities, such as contracts, payroll, taxes, and insurance, while the actual work is performed for the other company.

2. What type of employment contracts do you offer under EOR in Poland?

An employment contract concluded with a temporary worker is typically set for a definite period. This means the contract clearly states the start and end dates of the employment, and it automatically expires once the agreed term has passed.

3. What are the standard working hours and overtime rules in Poland?

Standard working hours in Poland, as defined by the Labor Code, are 8 hours per day and an average of 40 hours per week in the applicable settlement period. For full-time employment, this means 5 days of 8 hours per day.

The maximum overtime limit is 150 hours per year for one employee, but may be increased to 416 hours if the employer includes such information in the work regulations, collective agreement or employment contract.

4. What is the minimum wage in Poland?

As of now, the national minimum wage in Poland is 4,666.00 PLN gross per month for full-time employees. This amount is set by the government and is reviewed annually, with adjustments typically taking effect at the start of the calendar year.

5. How is paid time off (PTO) handled under EOR in Poland?

• Public holidays: There are 13 public holidays in Poland. These are: New Year’s Day, Epiphany, Easter (Sunday and Monday), Labor Day, Constitution Day, Pentecost, Corpus Christi, Assumption of the Blessed Virgin Mary, All Saints’ Day, National Independence Day, and the two days before Christmas.
• Vacation: 2 days per each month worked for the temporary workers under EOR.
• Sick leave: In principle, employees are entitled to sick pay for the first 33 days of illness in a calendar year (14 days for people over 50 years of age). After this period they receive sickness benefit from the Social Insurance Institution (ZUS). Normally, an employee can be on sick leave (L4) for up to 182 days per calendar year. In special cases, such as tuberculosis or pregnancy, this period may be extended to 270 days.

6. What are the rules around termination and notice periods in Poland?

The regulations provide for five ways to end the employment relationship between an employee and an employer. These are:

Termination of the employment contract by mutual consent of the parties

Termination by mutual consent is the most amicable way for an employer to part ways with an employee. It requires:

• Consent of both parties to terminate the contract
• Joint signing of a document confirming the date and terms of termination by the parties.

Important! When terminating an employment contract by mutual consent, the regulations assume that both parties intend to terminate the employment relationship. Therefore, in this case, neither the employer nor the employee has the right to appeal the agreement to a labor court.

Termination of the employment contract by notice

Pursuant to Article 30 § 1 point 2: “An employment contract shall be terminated by a declaration of one of the parties, observing the notice period (termination of an employment contract by notice)”. This means that the employment relationship may be terminated at the request of either party, the employer or the employee.

The notice of termination should be in writing. If the employer initiates the termination of the employment contract, the notice should also include information about the employee’s right to appeal to a labor court and the reason for termination if the notice concerns a contract concluded for an indefinite period.

Termination of the employment contract without notice

Both employers and employees can terminate an employment contract without notice. The Labor Code specifies the grounds for which either party may terminate the employment contract without notice.

The situations in which an employee may terminate the contract are specified in Article 55 of the Labor Code. For employers, the Labor Code provides a broader list of grounds for terminating an employment contract without notice. These provisions can be found in Articles 52-53.

Termination of the employment contract upon expiry of the period for which it was concluded

A trial period or fixed-term employment contract automatically terminates upon the expiration of its term. If you wish for the employee to continue working for your company after the termination of this employment contract, you must enter into a new employment contract with them. However, if you no longer wish to continue working with the employee, you are not required to submit any declaration.

By expiration of the relationship

The termination of an employment relationship occurs automatically by operation of law, only in circumstances specified in the regulations. According to these regulations, an employment contract expires in the event of:

• The employee’s death
• The employer’s death, provided they were an individual. This applies to sole proprietorships, as well as situations where the deceased employed the employee personally, not as a business. In such cases, employees will be entitled to compensation equal to their notice period wages.

7. Can you hire contractors or freelancers through EOR in Poland?

Yes. In Poland, it is possible to engage contractors or freelancers through an EOR using civil law contracts, such as a contract of mandate (umowa zlecenie) or a contract for specific work (umowa o dzieło).

8. Are there any country-specific compliance requirements for onboarding?

Yes. In Poland, certain legal requirements must be fulfilled before and at the start of employment. A medical check is mandatory before signing the employment contract to confirm the employee is fit for the role. Additionally, Occupational Health and Safety (OHS) training must be completed on the first day of employment.

9. How long does onboarding typically take via EOR in Poland?

The duration of onboarding through an EOR in Poland can vary, primarily depending on how quickly the required medical check can be completed. Once the medical clearance is obtained, the process moves quickly, with contract signing and OHS training typically taking place within a short timeframe.

10. Are there limitations on what roles or industries can be hired via EOR in Poland?

Yes. There are limits on the length of employment under certain arrangements. The maximum continuous period for employing someone via an EOR is generally 18 months, after which alternative arrangements would need to be considered to remain compliant.

Need EOR support in Poland?

Whether you’re hiring your first employee in Poland or expanding your existing team, Parakar is here to support you. As your local Employer of Record, we handle employment contracts, payroll, compliance, and HR administration, allowing you to focus on growing your business.

Get in touch with us to find out how we can help you achieve your hiring goals in Poland.