Are you looking for a job in Poland or opening a business in this country? Then, you should know about different types of contracts between employers and employees. No matter which of them you opt for, make sure to fix it in a written form and double-check whether you meet all the requirements of the local legislation. In this article, we’ll talk about the four varieties of employment contracts in Poland that can be signed in the IT industry.
Employment Contract
This one is the most expensive for the employer and the most lucrative type of contract from an employee’s perspective. Its terms are regulated by the local Labor Code. When someone lands a job on such conditions, they get the right to:
- Earn at least the minimum wage;
- Work for a fixed number of hours per day and week;
- Get paid when they fall ill or are away on a vacation;
- Get employed and fired only according to the legal procedures.
The company pays a part of social contributions for the employee.
The working relationship under a contract of employment can take place during one of the following time frames:
- Indefinite period;
- Limited period;
- Trial period;
- To replace a professional who works for this organization permanently but is currently unavailable.
In Poland, the maximum allowed duration of the trial period is three months. One specific company and one specific contractor can benefit from the trial period only once. However, there might be a second trial if the same person applies for a new job type in the organization or at least 3 years have passed since both parties signed their first employment contract.
When a company hires a professional for a limited term, the duration of their contract can’t exceed 33 months. If both parties want to go on working on the same conditions, they can terminate their first contract in 33 months and sign another one. The duration of the break between the two contracts doesn’t matter. After the termination of the third contract of this type, the company has to either employ this specialist full-time or switch to another contract variety. There are exceptions to these rules. They are related to individuals who perform seasonal work, substitute for absent staff members or are included on the management board. Each exception needs to be discussed with a legal consultant individually.
If a contract was signed for an indefinite period, the employer has to explain why they fire the specialist. They can’t do so because they believe this person is not the right fit for them. Such a contract accentuates the high status of the professional.
Self-Employment
These are B2B contracts, the most common for the IT industry. Civil Law regulates them. The self-employed specialist acts as a company that consists of one staff member only.
The contract should contain the answers to the following questions:
- Which services should the self-employed person provide to the company?
- Which requirements should these services meet?
- How much will they get paid for that?
- For how long will the collaboration last?
- On which conditions can it be terminated prematurely?
The self-employed person takes care of their social insurance and accounting without the employer’s assistance. They fail to get paid leave when they fall ill, go away on a holiday or give birth to a baby. They won’t get the benefits guaranteed by the Labor Code.
Companies appreciate this type of contract because it enables them to flexibly expand or limit their staff. On the flip side, it’s hardly suitable for organizations that make their team members work fixed hours and rigorously supervise them.
Contract to Perform a Specified Task
Unlike a contract of employment, this one doesn’t offer any additional benefits to the IT professional, except for the monetary remuneration. In the document, both parties specify:
- Which task needs to be done?
- What’s the deadline?
- How much will it cost?
- Are there any special conditions, such as the preferred payment option?
The law doesn’t impose any minimum or maximum limits on the price and duration of work.
Once the task is completed, the professional submits an invoice to the employer. The sum of the payment will be taxed.
Assignment Contract
This one was alternatively dubbed “diligent performance contract”. The contractor and the principal sign it.
These two types of employment contracts might seem nearly identical: the assignment one and the one that is focused on performing a specific task. However, there is a meaningful difference. The former makes the contractor conduct a transaction. The result of this action is not as important as the fact of making the action.
Such a contract can be terminated at any moment according to its terms. If it’s the only source of income for the IT professional, the employer has to pay for their health and social insurance.
