Employment Law Update: Poland
Planned changes to the Temporary Employment Act
The Solidarity Trade Union has proposed changes to the Temporary Employment Act, which would prohibit businesses from using the same temporary employee for a period of more than 18 months within a three year period. The move, which is aimed at stopping the current practice of hiring the same temporary employee at one workplace for many years by using multiple employment agencies, would enable temporary workers to have greater employment protection. A draft amendment is being prepared by the Polish Cabinet in consultation with other social partners, including unions and employers.
Supreme Court ruling on social security contributions for executive remuneration
On 12 November 2014, the Polish Supreme Court ruled that the remuneration of a management board member, whose activities were consistent with managing the company, should be treated as consultancy fees for the purposes of social security contributions. In the case in question, the management board member was registered as an individual entrepreneur, which attracted reduced social security contributions. However, the Court ruled that the individual’s position on the management board of the company made it impossible for him to be treated as an independent entity, and that he should be treated not as an entrepreneur but as a consultant. Under Polish law, the company is responsible for the withholding of social security contributions on consultants’ remuneration and social security contributions are considerably higher.
Employees can claim damages for ‘inappropriate duties’
In September 2014, the Polish Supreme Court ruled that an employee was entitled to damages for moral injury for work, other than that defined in the employment contract, that did not match the employee’s qualifications. In another case, which was further confirmed by the Appellate Court, it was judged that requiring a Deputy Head of Department to work as a Junior Assistant was below her qualifications and inflicted moral injury.
- Supreme Court Ruling I UK 126/14
- Supreme Court Ruling III PK 138/13
- Appellate Court (Bialystok) Ruling III APa 11/14
For further information or to discuss any of the issues raised, please contact Roch Palubicki at SKS Legal on +48 61 856 04 14.
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