Electronic employment contracts – new draft by the Ministry of Family and Social Policy

Last week, a draft law on certain electronically concluded contracts and on amending the Social Assistance Act (No. UD 230) was submitted for public consultation. Among other provisions, it proposes the creation of an IT system designed to facilitate the lawful drafting of employment contracts, contracts of mandate, activation contracts (concerning childcare), and contracts for harvest assistance. According to the draft, these contracts may be concluded electronically. Their modification and termination are also to be conducted electronically.

Contract Register – Assistance or Risk?

The bill’s authors argue in the explanatory statement that the law will significantly reduce the administrative burdens on micro-entrepreneurs, farmers, and individuals related to employment obligations. This will free up resources that, in the case of micro-entrepreneurs and farmers, can be devoted to their core activities, and in the case of individuals, will save financial resources and time. The use of IT systems and automation of this process will allow these goals to be achieved without changing the existing legal provisions related to employment.

Beyond the aforementioned conveniences for those who legally employ workers, the draft aims to facilitate contract conclusion for micro-entrepreneurs, farmers, and individuals who previously did not do so and worked in the so-called “grey market.”

Moreover, the system will enable employers, principals, or parents to submit to the Social Insurance Institution’s IT system insurance documents related to social or health insurance for employees, contractors, or nannies.

Contract management within the system will end upon one party’s withdrawal of consent for using the system or upon expiry of the retention period for employee or contract documentation. Withdrawal of consent will not be possible after the contract is terminated or expires.

The system is planned to be launched within three years from the date the law enters into force. The law is to come into effect 30 days after its publication in the Court and Economic Monitor.

It is important to note, however, that information about contracts concluded, detailed employee data, remuneration amounts, and scope of duties will be automatically forwarded to tax offices and the Social Insurance Institution (ZUS). Thus, the process of oversight will, in effect, become automated.

Planned actions (according to the draft’s explanatory statement):

• Provision by the minister responsible for labour of an IT system enabling contract conclusion according to ready-made templates. Access to the system will be granted after logging in via a trusted profile on an individual account at the praca.gov.pl portal;
• Extension of the use of the trusted signature from official matters to concluding employment contracts, contracts of mandate, service contracts governed by mandate law, activation contracts, and contracts for harvest assistance on the praca.gov.pl portal;
• Introduction of ready-to-fill contract templates available in the system, ensuring their efficient distribution and facilitating the entire contract conclusion process for all interested parties (micro-entrepreneurs, farmers, and individuals).

The main goal of the law is to expand the existing IT system on the praca.gov.pl portal with new functionalities. The system will also be integrated with the Entrepreneur Information Point system, referred to in Article 51(1) of the Act of 6 March 2018 on the Central Register and Information on Economic Activity and the Entrepreneur Information Point (Journal of Laws 2020, item 2296, as amended), but only concerning contract conclusion by micro-entrepreneurs.

It is planned that the IT systems of the minister responsible for labour will provide fillable templates of employment contracts, contracts of mandate, service contracts governed by mandate law, activation contracts, and contracts for harvest assistance.