Month: May 2025

A Protected Work Establishment (Zakład Pracy Chronionej) is nothing more than a special type of enterprise that provides special employment conditions for people with disabilities. The purpose of such establishments is to support the professional activation of people with disabilities by adapting working conditions to their needs and giving them greater opportunities in the labor market. What are the formal requirements and what benefits does such a status bring to the employer?

 

Formal Requirements and Benefits

The status of a Protected Work Establishment can be obtained by an employer who has conducted business activity for at least 12 months, employs no fewer than 25 employees full-time equivalent, and for at least 6 months meets the employment quotas for people with disabilities specified in the regulations. To obtain this status, the employment rate of people with disabilities must be at least 50%, of which at least 20% of all employees must be persons with a severe or moderate degree of disability. Alternatively, at least 30% of employees may be blind persons, mentally ill, or intellectually disabled, classified as having a severe or moderate degree of disability. Furthermore, the establishment’s buildings and premises must comply with occupational health and safety regulations and be adapted to the needs of people with disabilities in terms of workstations, sanitary facilities, and communication routes. The establishment must also provide emergency and specialist medical care, counseling, and rehabilitation services. The status of a Protected Work Establishment is granted by the voivode in the form of an administrative decision after fulfilling the above conditions and submitting an appropriate application.

The application for status should include not only the name and address of the establishment and information about the business activity conducted, but also, among others, information on employment levels and employment rates indicating the types of disabilities of individual employees, information on the provision of specialist and emergency medical care, counseling, and rehabilitation services, an appropriate decision from the National Labour Inspectorate confirming that the facility meets the requirements for a Protected Work Establishment, certificates of assignment of NIP (tax identification number), REGON (statistical number), and entry in CEIDG (Central Register of Business Activity), as well as a certificate of entry in the National Court Register. The fee for this matter is 10 PLN.

Protected Work Establishments receive, among others, subsidies for wages of employed persons with disabilities, subsidies for certain loans related to the rehabilitation of persons with disabilities, and reimbursements of certain expenses.

 

Summary

Obtaining the status of a Protected Work Establishment is a process that brings numerous benefits. Meeting specific formal requirements and providing appropriate working conditions for people with disabilities is the key to success. Thanks to this, the company can not only gain financial support but also contribute to improving the labor market situation for people with health limitations.

If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.

 

 

 

As digitization progresses, more and more companies are deciding to switch from traditional paper employee documentation to its electronic counterpart. Working with e-documentation brings a number of benefits but also requires knowledge of legal regulations and appropriate procedures.

What should an employer know to properly implement electronic employee documentation?

Employer’s Rights

According to Article 94 point 9a of the Labor Code, the employer is obliged, in particular, to keep and store documentation related to the employment relationship as well as employee personal files (employee documentation) in paper or electronic form.

Moreover, Article 94⁸ of the Labor Code allows for changing the form of stored employee documentation. The change of employee documentation from paper to electronic form takes place by creating a digital reproduction, in particular a scan, and signing it with a qualified electronic signature or qualified electronic seal of the employer or a qualified electronic signature of a person authorized by the employer, confirming the compliance of the digital reproduction with the paper document. The change of employee documentation from electronic to paper form takes place by making a printout and signing it by the employer or a person authorized by them, confirming the compliance of the printout with the electronic document.

It should be remembered that both paper and electronic employee personal files should consist of 5 parts: A, B, C, D, E and include:

1. Statements or documents collected during recruitment;
2. Statements or documents related to the commencement of the employment relationship and the course of employment;
3. Statements or documents related to termination of employment;
4. A copy of notification about disciplinary penalties and other documents concerning employee liability for breaches of order or arising from regulations providing for removal of the penalty after a specified time;
5. Documents related to employee sobriety control or tests for the presence of substances acting similarly to alcohol in the employee’s body.

Importantly, regarding employees employed from January 1, 2019, the employer or principal is obliged to keep employee files for 10 years, counted from the end of the calendar year in which the employment or contract of mandate ended.

For employees first employed between January 1999 and December 2018, the storage period may be shortened from 50 to 10 years, provided that the employer:

• Submits a statement to the Social Insurance Institution (ZUS OSW) and
• The relevant information report (ZUS RIA).

Files of employees or contractors employed before January 1, 1999 must be stored for 50 years.

 

Summary

An employer wishing to keep employee documents in electronic form must meet a number of requirements set out by applicable law. The key regulations are found in the Labor Code. Above all, documentation in electronic form must be maintained in a way that ensures its authenticity, integrity, and readability.

If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.

 Relief for Companies Employing Soldiers

On September 26, 2024, the first reading of a government bill took place, aiming to encourage employers to hire soldiers of the Territorial Defence Forces and soldiers of the active reserve. The purpose of the government bill amending certain laws to support entrepreneurs employing Territorial Defence or Active Reserve soldiers is to encourage employers to hire OT and AR soldiers – individuals belonging to these groups who, although as a rule do not perform daily service in organizational units of the Ministry of National Defence, remain soldiers on active military service at all times. Therefore, they may be called upon at any time to perform service duties, which excludes the possibility of performing work duties under an employment relationship. What benefits are planned for employers in connection with the bill?

 

Main Assumptions

As indicated in Article 26he of the proposed act, a taxpayer deriving income from non-agricultural business activity may deduct from the tax base, determined pursuant to Article 26 paragraph 1 or Article 30c paragraph 2 of the Personal Income Tax Act, the amount of:

1. PLN 12,000 if an employee employed under an employment contract is a soldier of the Territorial Defence Forces or an active reserve soldier who has continuously served at least 1 year in the Territorial Defence Forces or the active reserve;
2. PLN 15,000 if the employee has continuously served at least 2 years in the Territorial Defence Forces or the active reserve;
3. PLN 18,000 if the employee has continuously served at least 3 years in the Territorial Defence Forces or the active reserve;
4. PLN 21,000 if the employee has continuously served at least 4 years in the Territorial Defence Forces or the active reserve;
5. PLN 24,000 if the employee has continuously served at least 5 years in the Territorial Defence Forces or the active reserve.

Importantly, a taxpayer who is a micro or small entrepreneur may increase the amounts mentioned above by a factor of 1.5, and a taxpayer employing at least 5 employees under an employment contract, who is not a micro or small entrepreneur, may increase the amounts by a factor of 1.2.

Summary

According to the bill, the new provisions are to enter into force 14 days after the date of publication in the Journal of Laws, with the tax relief provisions applying to income earned from 2025 onwards.

If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.

 

 

 

 

From January 1, 2025, the minimum wage in Poland will increase to PLN 4666 gross.
This is an increase of PLN 366 compared to the minimum wage in 2024. At the same time, the minimum hourly rate will also rise, and from January 1, 2025, it will be PLN 30.50 gross, which is an increase of PLN 2.40. Importantly, no additional changes to the minimum wage are planned during 2025, meaning this amount will apply throughout the entire year.

 

How much will employees receive “net”?

In 2025, assuming full-time work, the minimum gross salary will be PLN 4666, but from this amount, standard contributions must be deducted. Assuming no changes, the pension contribution will be PLN 455.40, the disability contribution PLN 69.99, and the sickness insurance PLN 114.32. Additionally, there is a health insurance contribution of PLN 362.37 and a PIT tax advance of PLN 153 without any tax reliefs.
After deducting these mandatory costs, the employee will receive PLN 3510.92 net. This is the minimum amount every person employed full-time will receive, regardless of industry or position.

 

Consequences for the employer

Assuming a gross amount of PLN 4666, the employer’s total cost will be PLN 5621.59. This is nearly PLN 450 more than in 2024!
Some industries may face challenges adapting to higher labor costs. Employers will need to find ways to optimize expenses, which may lead to reducing employment or introducing automation.

 

Summary

The increase in the minimum wage always sparks heated discussions about its impact on the labor market and the economy. On one hand, it supports the lowest-paid employees; on the other, it creates challenges for employers, especially in low-margin industries. As always, the real effects of this change will depend on many factors.
If you have any questions or doubts regarding the minimum wage or other aspects of labor law, please contact our law firm. You can count on comprehensive service and full commitment at every stage of handling your case.

 On September 26, 2024, the Court of Justice of the European Union (CJEU) issued an important ruling regarding a GDPR violation. The Court indicated that national data protection authorities are not always automatically obliged to impose sanctions, including financial penalties, for breaches of personal data protection regulations. This decision particularly concerns situations where the institutions involved in the breaches have independently taken appropriate remedial actions.

 

Facts of the Case

The case brought before the CJEU concerned a German savings bank, where an employee repeatedly accessed the personal data of one client without authorization. The savings bank responded to this breach by taking disciplinary measures against the employee and requiring her to sign a declaration that she had neither copied nor shared the data.
The client was not informed about the incident because the institution considered that no violation of his rights had occurred that would require intervention. However, the client learned about the breach by other means and filed a complaint with the data protection officer of the federal state. The inspector did not impose a fine on the savings bank, judging that the remedial measures taken were sufficient. The client decided to bring the matter to court, demanding a financial penalty on the institution, which led to a preliminary ruling request to the CJEU.

 

Court’s Decision

The CJEU ruled that national data protection authorities are not obliged to impose fines every time a GDPR breach occurs, including financial penalties. The principle of proportionality and the effectiveness of remedial actions are key. If the data controller has taken appropriate steps to remedy the violations and punishment is not necessary to ensure full GDPR compliance, supervisory authorities may refrain from imposing additional sanctions.
The Court emphasized that the GDPR provisions leave supervisory authorities some discretion in choosing measures to ensure a high level of personal data protection. Financial penalties are one tool, but do not always have to be applied if other actions suffice.

 

Consequences of the Ruling

The CJEU ruling may significantly impact data protection practices across the European Union. The decision confirms that supervisory authorities can adopt a flexible approach depending on the nature of the breach and remedial actions taken by data controllers. Not every case must end with a financial penalty, which is especially beneficial for smaller entities that may lack resources to cover large fines.
Now the German court will need to decide whether the data protection officer of the federal state of Hesse correctly applied the GDPR rules and whether the measures taken by the savings bank were sufficient.

 

Summary

The CJEU ruling highlights the importance of proportionality and flexibility in enforcing the GDPR. Data protection authorities are not required to impose fines in every case, and the responsibility of institutions to undertake remedial actions is crucial. This signals that GDPR rules may be applied with consideration of the specifics of each breach, which could influence how companies manage data protection violation cases in the future.
If you have any questions or concerns, we encourage you to contact our Law Firm. You can count on comprehensive support and full commitment at every stage of your case.

 

 

 

 

In recent days, water flooding into homes, destroying roads, and tearing down bridges has become a real threat affecting thousands of people. However, a flood impacts not only private life but also professional life. Many employees do not know that in a disaster situation the law is on their side. In a crisis situation such as a flood, both employers and employees should know their rights and obligations.

 

Does a flood justify absence from work?

As indicated in § 1 of the regulation by the Ministry of Family, Labour and Social Policy regarding the justification of absences from work and granting employees leave from work, causes justifying employee absences include events and circumstances specified by labour law provisions that make it impossible for an employee to report to work and perform it, as well as other cases of inability to perform work indicated by the employee and recognized by the employer as justifying absence from work. Therefore, if a flood prevents an employee from reaching work, the employer should recognize such absence as justified.
Furthermore, according to Article 8 of the Act on special solutions related to removing the effects of floods, the actual inability to perform work due to a flood constitutes grounds for justifying an employee’s absence from work, and for the duration of the justified absence, the employee is entitled to an appropriate part of the minimum wage determined by separate regulations, for a period not longer than 10 working days according to the employee’s work schedule. However, the employer may assign the employee to perform work of a different kind than specified in the employment contract if it is necessary due to flood damage removal at that employer. In such a case, the employee retains the right to their current remuneration, calculated according to the rules applicable when calculating pay for vacation leave.

 

Leave from work due to force majeure

Force majeure is a term taken by the legislator from the Civil Code referring to unpredictable and unavoidable events that prevent the performance of obligations. In the context of labour law, it means situations beyond the employee’s control that prevent them from attending work – these are inevitable situations independent of the employee and objectively unforeseeable.
According to Article 148¹ of the Labour Code, an employee is entitled to leave from work during the calendar year amounting to 2 days or 16 hours. The employer is obliged to grant this leave upon the employee’s request – they cannot refuse this leave. Importantly, during the period of leave due to force majeure, the employee retains the right to remuneration amounting to half of their pay.

 

Downtime

If the company is unable to operate due to flooding, the employee who was ready to perform work but could not do so due to reasons attributable to the employer, pursuant to Article 81 of the Labour Code, is entitled to downtime pay. If the downtime was due to the employee’s fault, remuneration is not payable.
 

Is remote work an alternative?

According to Article 67¹⁹ of the Labour Code, remote work can be performed on the employer’s order during a state of emergency, epidemic threat, or epidemic, and for 3 months after their repeal, or in a period when the employer cannot temporarily provide safe and hygienic working conditions at the employee’s current workplace due to force majeure, provided that the employee submits a statement in paper or electronic form directly before the order, confirming that they have the local and technical conditions to perform remote work. The employer may withdraw the order to perform remote work at any time with at least two days’ notice. Remote work allows continuing professional duties without the risk of losing remuneration and protects the employer’s interests.
 

Summary

Flooding can cause serious difficulties in both personal and professional life. However, the legislator has provided a range of solutions aimed at protecting employees in these difficult situations. Employers and employees should be aware of their rights and obligations to jointly face challenges related to natural disasters.
If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.

Switching from business contract to employment contract during pregnancy – Supreme Court’s stance

Changing the form of employment from a B2B contract to an employment contract, especially to obtain insurance protection and maternity benefits, often raises controversies – especially when the Social Insurance Institution (ZUS) gets involved.
Employees who decide on such a solution can count on greater stability, but ZUS increasingly scrutinizes such changes to exclude cases where the employment contract is concluded solely to obtain high benefits, not out of a genuine need for employment. ZUS may question the validity of the contract if it considers that the salary was set at an excessively high level or to abuse the social insurance system by concluding a sham contract.

A case reviewed by the Warsaw Court of Appeal (case ref. III AUa 68/22) and subsequently by the Supreme Court (case ref. II USK 128/23) provides an interesting example regarding the limits where an employee’s salary can be considered by ZUS as an attempt to circumvent the law.

 

What is the boundary between legality and abuse?

The case examined by the Warsaw Court of Appeal and then the Supreme Court provides interesting answers to this question. A highly qualified lawyer with extensive professional experience changed her employment form from a B2B contract to an employment contract after becoming pregnant, which ZUS considered an attempt to abuse the social insurance system. The amount of remuneration and the intentions behind it were challenged.
The Warsaw Court of Appeal, overturning the earlier District Court ruling, clearly stated that the salary of 20,000 PLN gross, which the lawyer received after switching to an employment contract, was fully justified by her high qualifications and the employer’s needs. The court emphasized that the offered salary corresponded to market realities and the insured person’s skills, and its amount was lower than her previous income under the B2B contract.

However, ZUS held a different opinion, arguing that raising the salary shortly before pregnancy could be a form of circumventing regulations. The cassation complaint filed by ZUS with the Supreme Court concerned the interpretation of provisions related to the principles of social coexistence. The question posed by ZUS to the court was whether increasing the social insurance contribution base shortly before an event justifying long-term benefit payments constitutes merely a prudent life measure fully acceptable or may violate the principles of social coexistence. Is it enough to recognize that the salary granted to the insured person is fair, or should the circumstances of its granting not violate the collective interests of all insured persons?

However, the court had no doubts that the parties to the contract acted in good faith. The salary set at 20,000 PLN gross was adequate to market conditions and resulted from long-term cooperation between the insured and the employer. The court also noted that the lawyer actually performed work under the employment contract, full-time, at the employer’s premises, and using their equipment. All this indicated that her employment was not fictitious, and the salary was not intended solely to obtain social insurance benefits. The Supreme Court emphasized that not every pursuit of insurance protection, especially by pregnant women, is unlawful. However, if the salary was set at a grossly high level to obtain higher benefits, such a contract may be deemed contrary to the principles of social coexistence.

 

What does this mean for employers and employees?

This ruling is not only a clear signal for ZUS but also for all employees and employers that the line between legality and abuse of the social insurance system can be thin and not always obvious. ZUS may suspect various intentions in employment changes, especially when high salaries and benefits are involved. Nevertheless, if actions are justified and supported by appropriate arguments, courts may side with the employed, dismissing abuse allegations.
Every case must be assessed individually, considering all circumstances rather than general suspicions. If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of your case.

 In the face of recent disasters, such as floods, rapid humanitarian aid plays a key role. One element of support is the import of goods intended for victims. The regulations allow the use of exemption from customs duties and VAT. Such exemptions aim to accelerate the delivery process of aid while minimizing costs related to import.

 

0% tax rate

According to the Regulation of the Minister of Finance dated September 17, 2024, amending the regulation on reduced rates of tax on goods and services, the tax rate reduced to 0% applies to the supply of goods referred to in Article 7(2)(2) of the Act on tax on goods and services and the provision of services referred to in Article 8(2) of the aforementioned Act – for purposes related to aid for those affected by heavy atmospheric precipitation or floods in September 2024. The reduced tax rate applies only to supplies of goods or services rendered to:

• Public benefit organizations within the meaning of the Act of April 24, 2003 on public benefit activity and volunteering;
• Local government units;
• Medical entities within the meaning of Article 4(1) of the Act of April 15, 2011 on medical activity (Journal of Laws 2024, item 799);
• The Government Strategic Reserves Agency.

Importantly, the reduced tax rate applies on the condition that a written agreement is concluded between the taxpayer making the supply of goods or providing services and the entity, from which it follows that the delivered goods or provided services will be used for purposes related to aid for those affected by heavy atmospheric precipitation or floods in September 2024.
The zero VAT rate applies to donations of goods and free services transferred from September 12 to December 31, 2024. The value of the donation must be documented. 

Method of settlement

Donations for flood victims are settled according to general rules. Settlement according to general rules means that there are no special preferential provisions for this form of donations, so the same rules apply as for other donations. Entrepreneurs who make donations cannot include them in tax-deductible expenses, regardless of whether they donate cash, goods, or items.
Donations made should be deducted in tax returns, while taxpayers using flat-rate tax on their income may only deduct 100% of donations made for charitable and care purposes from their income.

 

Summary

The VAT exemption on goods donated to flood victims constitutes significant support for those affected. Thanks to this solution, companies can provide material assistance without additional tax burden, which increases motivation to provide support. However, it is important to comply with key rules.
If you have any questions or doubts, we encourage you to contact our Law Firm. You can count on comprehensive service and full commitment at every stage of handling your case.

It is already known that from January 1, 2025, entrepreneurs will pay higher ZUS contributions for social insurance. At the end of August this year, the Government adopted assumptions for the state budget project for 2025, in which the forecasted average salary amounts to PLN 8,673. This amount will now serve as the basis for calculating ZUS contributions for persons running business activity. How much will entrepreneurs soon have to pay?

 

ZUS contributions in 2025 – basis for calculation

The amount of contributions that an entrepreneur must pay is calculated based on 60% of the average salary. In 2025, the basis for contributions will amount to PLN 5,203.80 (60% of PLN 8,673). From this basis, contributions are calculated for:

• Retirement insurance;
• Disability insurance;
• Sickness insurance (voluntary);
• Accident insurance;
• Labor Fund.

Altogether, contributions for social insurance will amount to approximately PLN 1,773.96, excluding the health insurance contribution, which is calculated separately depending on the chosen form of taxation. This is almost PLN 2,000 more compared to the entrepreneur’s costs in 2024.
The increase in ZUS contributions in 2025 is nothing other than a consequence of the rising average salary. For many entrepreneurs, especially those running a sole proprietorship, higher contributions may significantly affect the costs of running a business.

 

Small ZUS Plus – relief for the smallest entrepreneurs

It is worth recalling that entrepreneurs who ran business activity in the previous calendar year for no less than 60 calendar days and whose revenue in the year preceding the application did not exceed PLN 120,000 may use the Small ZUS Plus program and thus pay lower social insurance contributions.
 

Summary

The year 2025 will bring higher ZUS contributions for entrepreneurs, which results from the increase of the forecasted average salary to PLN 8,673. For many people running a business, this means the need to prepare for higher financial burdens. It is important for entrepreneurs to be aware of these changes and properly adjust their budgets for the coming year to avoid unpleasant surprises.
If you have any questions or doubts, we encourage you to contact our law firm. You can count on comprehensive service and full commitment at every stage of handling your case.

 

According to media reports, the Ministry of Family, Labour and Social Policy together with the National Labour Inspectorate (Państwowa Inspekcja Pracy, PIP) plans a significant expansion of the powers of PIP inspectors, which would thereby relieve Labour Courts from adjudicating matters concerning the establishment of employment relationships. Representatives of the Ministry confirm intensified work on the amendment of the PIP Act, but do not provide further details. Currently, there is also no official information on the Sejm’s websites about the submission of the bill to the Chancellery.

Current Situation

The current legal status allows PIP inspectors only to file a lawsuit concerning the establishment of an employment relationship on behalf of the interested party, and to intervene in such proceedings at any stage with the plaintiff’s consent. Officers may also, under the provisions of the PIP Act, issue requests to the employer to change the legal basis of the work performed. The broadest competence granted is conducting proceedings in cases of misdemeanors when it is found that the employer unjustifiably concluded a civil-law contract with an employee, although in fact the work was performed under an employment contract. Such proceedings may end with a fine or referral of the case to the competent district court.

 

Unimplemented Changes

The plan to change the competences of PIP officers is not an original government idea. In 2021, a similar parliamentary bill amending the PIP Act (print no. 1134) was submitted to the Sejm, which also proposed granting PIP officers the power to issue constitutive administrative decisions. However, the project stalled in the Sejm after a negative government opinion, which criticized the apparent effectiveness of this solution – according to the government, in practice courts would begin to handle appeals against administrative decisions made by PIP officers. The government considered that the current competences regulated in Articles 63¹ – 63² of the Code of Civil Procedure sufficiently protect employees – the PIP inspector in such cases has quite extensive powers similar to those of a prosecutor.

 

Summary

Despite modest press reports, it is already questionable whether the rather small number of inspectors (a little over one and a half thousand) allows for effective use of potentially broad powers. Will the amendment to the Act in any way affect labour relations between employees and employers? Finally, the open question remains what those directly concerned – employees employed under civil-law contracts – think about these plans.