Poland
Regulations for working in Poland
Overview
Poland is increasingly becoming a key destination for business travel, cross-border projects, and flexible work models like workations. As an EU member state, it offers seemingly straightforward conditions for professional stays. However, depending on the purpose of the stay, various legal requirements apply. Whether it's a short-term business trip, a longer-term assignment, or remote work in Poland, it's crucial for companies and employees to be aware of tax, labor, and social security regulations.
This guide outlines the current rules, potential pitfalls, and how to ensure your professional trip to Poland is legally compliant.
EU Posted Workers Directive
Required Documents
Foreign employers must retain the following documents during the posting period and for two years thereafter:
- Employment contract or an equivalent document confirming the terms of employment.
- Records of working hours, including the number of hours worked each day.
- Documents related to remuneration, including deductions made under applicable laws and proof of payment to the posted employee.
These documents must be made available to the Polish National Labour Inspectorate (Państwowa Inspekcja Pracy, PIP) upon request, along with a Polish translation, within five working days of the request.
Legal Representative in Poland
Foreign employers are required to designate a representative residing in Poland who is authorized to act on behalf of the employer in dealings with Polish authorities, including sending and receiving documents and notifications.
Fines ranging from PLN 1,000 to PLN 30,000 (approximately €212 to €6,378) may be imposed for various violations, including:
- Failure to appoint a legal representative.
- Failure to submit or delayed submission of the posting declaration.
- Failure to notify the PIP of changes during the posting.
- Failure to retain required documents for potential inspections.
- Failure to provide requested documents to the PIP within two years after the end of the posting.
Sanctions are imposed on the foreign employer.
Arbeitsrecht
Minimum Wage
As of January 2023, the minimum wage in Poland is PLN 4,666 (approximately €1,090) per month for full-time employment based on an employment contract.
- The minimum wage is adjusted annually by September 15.
- If the average annual inflation exceeds 5%, the government is legally obliged to increase the minimum wage twice a year.
- In the first year of employment, the salary may be set at 80% of the minimum wage if the employee is a first-time jobholder with no prior contributions to the Polish Social Insurance Institution (ZUS).
Working Hours
The maximum working time in Poland is 8 hours per day and 40 hours per week.
Non-compliance with local labour laws may result in additional financial obligations, fines, or claims under local termination and working time rules.
Social Security
For workers posted from an EU country, EU Regulation 883/2004 applies.
- With a valid A1 Certificate: the employee remains covered under their home country’s social security system
- Without an A1: Polish social security rules apply, and the foreign employer must act like a Polish employer
The consequences of a violation may include extensive administrative obligations, back contributions (interest), increased audit costs and severe sanctions. In addition, significant reputation damage can occur in this context.
Income Tax
The taxation of posted workers depends on their tax residency status.
- Generally, income tax in Poland is not triggered if:
- The individual stays in Poland for less than 183 days.
- The remuneration is paid from abroad.
- The foreign employer does not have a permanent establishment in Poland.
- If income is taxable in Poland, the posted employee must calculate and pay monthly and annual taxes and submit tax returns. The foreign employer typically has no obligations in this regard.
The consequences of non-compliance can vary depending on the situation, but there is often an immediate obligation to submit a tax return in the destination country, which can result in further, extensive consequences for the employees and the company.
Immigration & Visas
International activities require exact compliance with international visa and entry requirements. The traveler, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.
The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.
Permanent Establishment
Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.
The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.
Compliance check for Trips to Poland
Do you need a simple, automated compliance solution for your employees' trips? Get to know premote!
Informieren Sie sich über Vorgaben weiterer Länder
Passende Lösungen für Travel Compliance
A1 Certificates & CoCs
Straight to the travelers' inbox, without further admin effort.
Posted Workers Directive
PWD notifications in real time, for all EU/EEA countries.
Business Travel Compliance
Identify risks in travel compliance management at an early stage.