Recruiting Top Talent in Poland
Polish Top Talent
Finding and recruiting top talent in any overseas territory poses many opportunities, as well as potential trip wires, for companies taking steps to build their international profile. This potential – and the challenges it brings – underlines why Bradford Jacobs’ global experience is indispensable for taking the smartest recruitment route into Poland.
The Recruitment Process in Poland
Although businesses still tend towards a hierarchical structure, Poland has proved the most successful of the economies that emerged from the former Communist system. Its growth as a free-market economy has been driven by the younger elements of a well-educated, motivated, and focused workforce.
They have played a strong entrepreneurial role, particularly among start-ups. Many of the younger managers have added English, German, and Russian language skills to their Polish, nurturing an internationally minded outlook.
In-comers can be reassured that Poland provides a comprehensive framework of regulations and statutes that safeguard employment rights.
Recruitment is the first stage of making your company operational and competitive in Poland. Once recruited, companies must then consider the implications of handling payroll for their staff and dealing with the tax and social insurance authorities. It is not a legal requirement in Poland to establish a legal entity to undertake these responsibilities, but strict registration procedures must be followed. These include:
- Applying for the employees’ Tax Identification Numbers (NIP)
- Registering employees with the Social Insurance Institution (ZUS)
- Registering employees with the National Statistics Agency (GUS)
- Filing forms for remitting tax with the National Revenue Administration (KAS)
- Withholding and remitting tax and social insurance contributions to the relevant authorities
- Compiling Personal Income Tax (PIT) returns comprising all income from employment, including bonuses and overtime, as well as benefits in kind
- Making advance monthly or quarterly PIT payments
- Filing PIT returns for employees where required, by April 30 of the year following the tax year
Legal Checks on Employees in Poland
- Scope: Poland’s Labor Code and other statutes allow employers to collect information verifying educational and professional qualifications and work history. Obtaining other personal information will require the candidate’s permission.
- Medical Checks: Permitted if relevant to a particular type of role, but not if the applicant provides a medical certificate for performing the same role with a previous employer.
- Educational Qualifications and References: Permitted.
- Criminal Record Checks: Permitted only if statutory regulations state this as essential for filling certain positions.
- Sensitive Information: Employers are allowed to process personal information relating to such as political and religious beliefs, biometrics and genetics, sexuality, and gender orientation, for example, only if the candidate initiates offering the information.
- Required: Relevant work permits for foreigners not from EU or EEA member states.
Basic Facts on Hiring in Poland
Companies hiring staff for expansion into Poland must comply with a framework of employment and taxation regulations. Some are subject to mandatory state regulations, while collective and trade union agreements can improve on the statutory basic minimums. Directives from the European Union (EU) can come into play. Basic requirements cover the following:
- The Employment Rights Act 1996 stipulates employers must provide a written statement detailing terms and conditions of their employment on the first day of employment
- In the absence of a written contract, the employer must provide a written statement before the first day of employment giving full details of the parties, remuneration, start date and if applicable end date of the employment, type, and place of work
- Poland’s Labor Code covers fixed term and open-ended contracts, including one for probationary periods
- Any changes to the terms and conditions, particularly pay, must be confirmed in writing
- Additionally, it is possible to conclude a part-time employment contract, which must not have inferior terms and conditions to full-time employees undertaking the same work
- Fixed-term contracts must not exceed three in number over a maximum of 33 months, after which it becomes an open-ended (indefinite) contract. Contracts for trial periods must not exceed three months
- Notice periods can apply to contracts for trial periods, fixed term, or indefinite. They can vary between two weeks, one month or three months; or three days, one week or two weeks for trial periods
- After hiring and onboarding, employers must be aware of other considerations. Minimum standards apply to such as sick leave, minimum wages, working hours, maternity allowances, paid vacations, termination, and severance, notice periods and social insurance payments. Other rules regulate workplace discrimination.
- In Poland it is not a legal requirement for foreign companies to open a legal entity to run payroll for their staff, but they must register with various authorities.