News - Poland

Poland - March 2014

"Per diems" paid to an employee seconded abroad may be subject to social security contributions

On 14 November 2013 the Supreme Court ruled that the employee of a Polish construction company, seconded a few times for longer periods to carry out work abroad was not on a business trip. Consequently, “per diems” paid to him are not subject to special provisions providing that employee’s business trip-related per diems are not subject to social security contributions, however still enjoy other, less favourable exemption from the social security. The Supreme Court also pointed out the differences between (i) the temporary secondment of an employee to carry out work abroad – which entails a temporary change (agreed with the employee) of their place of work provided for in their employment contract and (ii) a business trip on which an employee is incidentally sent, upon the employer’s request, without a need to change the place of work indicated in the employment contract.

The Supreme Court, however, emphasized that if in a given case an administrative decision is issued by the Social Security Office that the employee is subject to the Polish social security system when working abroad (currently it is issued on a form called A1) and the courts are bound by it and they may not deem the employee to have gone on a business trip.

Resources

Supreme Court Judgement dated 14 November 2013 (II UK 204/13)

For further information or to discuss any of the issues raised, please contact Jaroslaw Bieronski, on +48 22 608 70 52 or mobile phone: +48 602 105 255 at Soltysinski Kawecki & Szlezak - www.skslegal.pl.

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