Hiring In Poland – Country Guide

Guide to Recruitment in Poland

Hiring in a new country can be a complex and challenging process, with unique laws, regulations, and cultural differences to consider. This guide is designed to help you navigate the employment system in Poland, providing an in-depth overview of the job market and recruitment landscape – from contractual nuances, up to financial implications and immigration considerations. Our resource outlines the components you will need to create a comprehensive recruitment plan for your local hiring needs.

Overview

Poland has emerged as a regional leader in economic growth and job creation in recent years. The country’s favourable business environment, low labour costs, and highly skilled workforce have made it an attractive destination for international companies seeking to expand in Central Europe.

Despite the global economic challenges, employment rates have been on a positive trend, with a national unemployment rate of 5.5% in March 2023, significantly lower than the EU average of 6.6%, indicating a relatively stable market while providing ample employment opportunities.

The country has become a hotbed for cutting-edge technologies, paving the way for lucrative employment opportunities in engineering, data science, and software development, with highly competitive salaries. The thriving startup scene and numerous established tech companies in the country make the tech industry a major driver of job creation. The finance industry is also experiencing significant growth, with a surge in job openings in areas such as accounting, banking, and investment management. As the economy continues to expand, businesses are increasingly seeking out financial services and investment opportunities, driving demand for highly trained finance professionals.

The basic legal framework for labour relations in Poland is established in the Labour Code, which outlines employment relationships and regulates various aspects of employment such as hiring, termination, working time, and leave entitlements. Along with the Labour Code, collective bargaining agreements (CBAs) negotiated between employers and labour unions, or employee representatives can also dictate employment policies, such as wages and working arrangements. Additionally, separate statutes such as the Working Time Act, Minimum Wage Act, and Social Security System Act govern certain aspects of employment concerning working hours, minimum wage, and social security coverage.

Poland offers a range of employment agreements that are comparable to those in other European Union (EU) countries. The most prevalent are standard employment contracts with an indefinite duration and fixed-term contracts for seasonal or project-based work, though civil law contracts for specific work or services, often utilized by self-employed individuals or for work outside of regular employment are also popular.

Foreigners looking for job opportunities in Poland can choose from several permits and visas. The National Visa D allows for stays over 90 days for work, study, or family reasons, while the temporary residence permit allows employment in Poland for up to three years, extendable upon expiry. Highly qualified foreign workers with a job offer from a Polish employer can apply for a Blue Card, allowing work and travel within the European Union. For stays of up to six months, a seasonal work permit is also available, but eligibility criteria such as education level, work experience, and language proficiency must be met, as well as an offer of employment from a Polish employer.

The labour costs are relatively low compared to other EU countries, making it an attractive destination for foreign companies. Despite ranking 22nd out of 27 EU member states in average hourly wages, Poland still ranks among the most competitive countries in the EU based on its favourable labour market conditions and it is characterized by a high degree of flexibility, allowing employers to adapt to changing economic conditions with ease.

When it comes to recruitment, the landscape in Poland is marked by innovation and rapid change, with a growing emphasis on remote work and flexible schedules. The pandemic has accelerated the trend of remote work, leading to higher competition among employers. In their recruitment efforts, they are adapting to new technologies and workforce trends to attract and retain top talent while prioritizing diversity, inclusion, and soft skills in their recruitment strategies. The importance of soft skills is also growing, as employers seek candidates with strong communication and leadership abilities.

However, the increased demand for skilled professionals has led to a shortage of workers in certain industries such as IT, engineering, and healthcare. Collaborating with a recruitment agency in Poland can bring significant benefits for employers, such as a faster job application process, cost savings, and a wider reach for job posts. In addition, such collaboration offers access to a wide range of services that can help businesses navigate the local job market and ensure compliance with employment laws and regulations.

Overall, the Polish labour market has remained resilient amidst the pandemic, boasting one of the lowest unemployment rates in the European Union. Looking towards the future, the recruitment environment in Poland presents numerous opportunities for businesses to tap into a wider pool of talent and build diverse, global teams.

Allen Recruitment In Poland

Recruitment in Poland

Job Market Overview

As of 2023, Poland’s job market is experiencing steady growth, with increasing labour force participation and declining unemployment rates. Diverse opportunities are available across various sectors, with the IT sector expanding rapidly. The gig economy is also growing, particularly among younger generations.

According to the latest report “The Demand for Labour in 2021” published by the Central Statistical Office of Poland, the total number of job vacancies that were reported by employers in Poland in 2021 was 1,569,100. The report also indicates that there were 1,280,900 job vacancies filled during the same time period.

Job Benefits: Mandatory & Common Optional Benefits

Poland’s employment market is known for providing a comprehensive package of job benefits to employees. These benefits have been designed to ensure the well-being and satisfaction of workers while on the job.

• Paid Annual Leave and Public Holidays: A minimum of 20 days of paid leave per year, with additional days depending on seniority and job position, plus 13 public holidays.
• Parental Leave: New parents, including fathers, are entitled to parental leave of up to 41 weeks.
• Paid Sick Leave: Paid sick leave in case of illness or injury. The length of sick leave and the amount of compensation varies depending on the reason for absence and the length of service.
• Social Security: Coverage for pensions, disability benefits, and survivor’s benefits through the social security system.
• Medical Care: Access to medical care through the public health system and to a company doctor.
• Contribution to PPK: Employers are required to contribute to an employee’s pension plan known as PPK (Pracownicze Plany Kapitałowe).
• Worker’s Compensation Insurance: Coverage for workplace accidents and injuries.

In addition to these mandatory benefits, many employers in Poland offer additional benefits to attract and retain top talent. These commonly include:

• Private Medical Care
• Sports Cards
• Life Insurance
• Remote Work
• Flexible Hours
• Meal Vouchers
• Cinema Tickets
• Professional/Language Training
• Additional Days Off
• Nursery for Kids
• Co-Financing Holidays for Employees/Their Kids

Remote Work

The pandemic has fuelled the rise of remote work in Poland. According to data from the Central Statistical Office, the number of employees working remotely has been steadily growing, increasing from 12% in 2019 to 24% in 2022.

As of April 2023, remote work is regulated by the Polish Labour Code and the Act on the Promotion of Employment and Labour Market Institutions. Under this law, employees are granted the right to work remotely, subject to their employer’s approval, through a written agreement that outlines their job scope, work hours, and responsibilities.

In response to this trend, employers are introducing new policies that provide greater flexibility to their employees, such as hybrid work models, where employees divide their time between working remotely and in the office.

Employment Hubs in Poland

The key employment hubs in Poland are are located in major cities including Kraków, Wrocław, Warsaw, Gdańsk, Łódź, Katowice, and Poznań. These cities are home to highly regarded universities, which annually produce thousands of graduates who contribute to the workforce. Furthermore, most medium and large companies, including multinational corporations, are located in these urban centers.

Breakdown of the top 5 largest locations of employed persons and businesses per voivodeship (province):

Recruitment Landscape

The recruitment industry in Poland operates without a strict set of regulations. Generally, medium to large-sized companies have their own internal recruitment teams. However, in cases where qualified candidates are difficult to come by and the budget allows, recruitment agencies are often employed to provide additional support. In Poland, there are numerous recruitment agencies, both local and international, as well as many freelance recruiters, primarily located in urban centers where there is a thriving business environment.

Over the past few years, a discernible trend has emerged whereby large, international recruitment agencies have begun to outsource their recruiters to specific companies. These agencies often have subsidiaries in multiple locations across Poland, with recruiters who specialize in specific verticals such as IT, marketing, sales, and others. Their operations are confined to the region where they are based.

Recruitment agencies in Poland generally operate on either success fees or retained contracts, with fees typically ranging from 15% to 20% of a candidate’s annual salary.

Polish Labour Market Overview

According to the GUS, the Central Statistical Office of Poland, the latest available data indicates the total labour force in Poland at approximately 18.2 million people. This includes both the employed and those unemployed who are available and actively seeking work, divided as follows:

• 94.51% of the population is employed.
• 5.49% of the population is unemployed.

Gender divide across industries

Despite a very healthy balance of 50.9% male and 49.1% female employed persons, there are still industries in Poland which are subject to much larger gender gaps. The most important are:

Average Tenure

According to LinkedIn’s latest data the median tenure for professionals in Poland is 1.8 years.

Talent map

The Polish labour market is characterized by a relatively large number of people employed in the industry and services sectors, with smaller numbers in agriculture and construction. According to data from Poland’s Central Statistical Office (GUS) for the third quarter of 2021, the distribution of employment across the main regions is as follows:

The employed population in Poland is concentrated in the largest cities, with the Masovian Voivodeship, home to the capital city Warsaw, having the highest number of employed persons.

However, there are also emerging locations that show potential for employment expansion, such as the Kuyavian-Pomeranian and Lublin Voivodeships, as well as the cities of Gdańsk, Wrocław, and Kraków.

Overview of the current talent market dynamics

Rank of titles in high demand

LinkedIn data analysis of the most popular skills, measured by hiring demand in parity to numbers of professionals

1y growth – The percentage change in the number of professionals with this skill, compared to the number of professionals one year prior.

Main job boards and channels for sourcing candidates

The most popular job boards in Poland, by share of traffic among all job boards, are:

1. Pracuj.pl – 33.78% share of traffic
2. Indeed – 16.39% share of traffic
3. OLX.pl – 7.31% share of traffic
4. LinkedIn – 6.87% share of traffic
5. Jooble – 3.69% share of traffic
6. Gumtree.pl – 2.72% share of traffic
7. Careerjet – 2.53% share of traffic
8. Monster – 1.87% share of traffic
9. Jobrapido – 1.65% share of traffic
10. GoldenLine – 1.39% share of traffic

Contact Our Poland Growth Specialist

How do I hire an employee in Poland?

The most straightforward way to hire someone in Poland is with a contract. Poland has diverse employment opportunities with different contract types to suit individual needs, the most common are permanent, limited-term, B2B contracts and temporary contracts.

The number of employed persons per contract type is distributed as follows:

Permanent positions (UoP) are the most common and highly regarded by job seekers due to the stability and benefits they offer.

Limited-term contracts are also an option, providing greater versatility for projects or temporary work.

In certain professions, such as IT and construction, B2B contracts are preferred due to their greater flexibility for both employers and employees.

Temporary contracts are also common, particularly in administrative positions, customer service, and manual labour, rendering them most suitable for short-term work.

Each employment type has its own benefits:

Permanent Employment

Permanent employment in Poland is a type of work arrangement where an employee is hired for an indefinite period of time by an employer. It means that the employee has job security and can expect to work for the employer for a long period of time, subject to the terms and conditions of the employment contract.

Key benefits:

• Job security and stability: Permanent employees have the security of knowing that they have a long-term job, leading to greater loyalty and commitment, which can improve productivity and work quality
• Range of benefits: Included entitlements such as paid vacation time, sick leave, and social benefits can enhance employee satisfaction and attract top talent.
• Cost savings: The cost of hiring and training new employees can be significant, and turnover can disrupt productivity and team cohesion. Permanent staff accounts for a more stable and reliable workforce.

Temporary & fixed term employment

Fix-term employment contracts offer flexibility for both employers and employees. These contracts are signed for a specific period and can be extended twice for up to 33 months. If extended for a third time, they become indefinite, except for part-time or temporary work agreements.

Temporary contracts: the maximum employment time is 18 months in total during 36 consecutive months.

Temporary and fixed-term employment contracts are ideal for seasonal or project-based work, providing opportunities for job security, professional development, and career growth.

Key benefits:

• Flexibility: These contracts provide employers with more flexibility in managing their workforce. They can quickly adjust their staffing levels to meet demand without committing to permanent hires.
• Shorter notice period and no requirement for justification for contract termination.
• Job security, professional development, and career growth: Temporary and fixed-term employees still have job security, and these contracts can provide opportunities for professional development and career growth.

An Employment Contract for a Specified Task

An Employment Contract for a Specified Task is a type of employment agreement used when an employer needs an employee to perform a specific task or project that is not related their core business.

Key benefits:

• Flexibility: Without committing to permanent hires or incurring the costs associated with hiring permanent employees, there is greater flexibility in managing the workforce, which is particularly useful for short-term or project-based work.
• Access to specific skills or expertise: Employing people with specific skills or expertise without having to provide them with permanent employment allows quick access the skills needed for a specific task or project.
• Cost savings: Employers using an Employment Contract for a Specified Task in Poland are not required to provide their employees with social security contributions or other benefits typically provided to permanent employees.

A Mandate Contract

A Mandate Contract is a type of employment agreement used when an employee determines when the work will be completed, but the remuneration is made only for the hours worked, the social payments in ZUS are not made, and the employer is not obligated to issue a certificate of employment to the employee.

Key benefits:

• Cost savings: Employers using a Mandate Contract are not required to provide their employees with social security contributions or other benefits typically provided to permanent employees.
• Less administrative tasks: Mandate contracts reduce administrative burden by shifting responsibilities like taxes and insurance to the mandataries, freeing the mandators to focus on core business activities.
• Access to specialists: Mandate contracts provide businesses with access to specialized expertise and skills without the need for extensive training or permanent hiring.

Day-rate contractors, LTD contractors, or self-employed persons

Day-rate contractors, LTD contractors, and self-employed workers are not considered employees of the hiring company. They pay their own taxes and provide services for a specific project or task without any long-term commitment.

Key benefits:

• Flexibility in workforce management: These workers can be hired for specific projects or tasks without committing to permanent hires, allowing the company to adjust its workforce as needed.
• Cost savings: There is no requirement for costs associated with hiring permanent employees, such as social security contributions and other benefits.
• Specialized skills and expertise: They can offer the necessary skills and knowledge for a particular project, ensuring it’s completed successfully and to a high standard.
• Competitive advantage: With access to specialized skills and expertise, the company can offer high-quality services to their clients, giving them a competitive edge.

Key Elements in a Polish Contract

These contracts can cover a wide range of topics, including sales, leases, employment, and partnerships. While the specific terms of a contract will vary depending on the nature of the agreement, there are several key elements that are typically included in Polish contracts:

• Identification of the parties
• Job title and description
• Remuneration
• Working hours
• Confidentiality and non-competition
• Probationary period
• Holidays and sick leave
• Work conditions
• Governing law and jurisdiction
• Termination and cancellation
• Dispute resolution

Exclusive country-specific clauses that may be applicable in some cases include collective bargaining agreements, fixed-term contracts, trial period, non-compete clauses, language requirement, and benefits and allowances.

Hiring permanent staff in Poland

Permanent staff in Poland are employed under an indefinite-term contract (Umowa o pracę), which is the most common and desired form of employment. It is a type of employment contract that does not have a specific end date and is intended to continue until the employee resigns or is terminated. Typically, a permanent contract starts with a three-month probation period, which is the maximum allowed in Poland.

The purpose of this contract is to allow the employer to assess the employee’s qualifications and suitability for the position, and for the employee to gain a better understanding of the working environment. Under a permanent contract, the employee is entitled to certain rights and benefits such as social security, health insurance, paid holidays, sick leave, and severance pay.

A permanent contract is a sign of job security for employees, and many people strive to obtain this type of contract as it provides stability and continuity in their employment.

Hiring Temporary staff in Poland

A fixed-term employment contract, also known as a limited-time employment contract (umowa o pracę na czas określony) is a type of employment agreement signed for a specific period of time that is convenient for both the employer and the employee. This contract can be extended twice more, with a maximum duration of 33 months, after which it automatically converts into an indefinite-term contract.

Unlike mandate contracts and B2B contracts, an employee with a fixed-term employment contract is entitled to the same rights and benefits as an employee with a permanent contract. These include social security, health insurance, paid holidays, sick leave, and severance pay.

However, if the employer terminates a fixed-term contract before the end of the specified period without a justified reason, the employee is entitled to compensation. This compensation is calculated based on the employee’s earnings, seniority, and length of the contract.

Additionally, a mandate contract (Umowa zlecenie) is a type of employment agreement where the employee determines when the work will be completed, but the remuneration is made only for the hours worked, and the employer is not obligated to make social security payments or issue a certificate of employment to the employee.

This type of contract is often considered the least desirable as it does not offer the same rights and benefits as other forms of employment agreements. A person with a mandate contract is not considered an employee and is responsible for their own social security, health insurance, and taxes.

Hiring Self-Employed Workers or LTD Contractors in Poland

B2B/LTD is a “business to business” agreement between a self-employed person and the company that would typically be the employer. B2B contracts are often used for outsourcing specific services, such as IT or accounting, or for short-term projects.

Under a B2B contract, the person or company providing the services is responsible for their own social security, health insurance, and taxes. This means that the employer is not required to make any contributions towards these costs. As a result, B2B contracts can be more cost-effective for employers compared to other types of employment contracts.

However, the labour law does not apply to individuals hired on a B2B contract. Instead, all matters are regulated by civil law. This means that individuals hired on a B2B contract are not entitled to benefits such as paid leave, sick leave, parental leave, or notice periods, unless agreed otherwise in the contract.

Another advantage of a B2B contract is that it allows for more flexibility in terms of working hours and contract duration, which can be beneficial for both the employer and the service provider.

Learn More About Allen Recruitment In Poland

Visas–Permits

Poland offers various work visa options for foreign nationals who wish to work in the country. The availability of work visas depends on a number of factors, such as the type of work being pursued, the nationality of the applicant, and the demand for skilled labour in certain sectors.

These types of visas include:

• Type A: This type of visa is the most popular and is granted to individuals who have secured employment through an employment contract or civil law contract with a Polish-registered employer.
• Type B: Individuals who are board members and have resided in Poland for more than six months within 12 subsequent months are eligible for this type of visa.
• Type C: This visa is intended for those who have been sent to Poland by a foreign employer to work for their subsidiary or branch office in the country for more than 30 days in a calendar year.
• Type D: Eligibility for this visa is based on being sent by a foreign employer to work temporarily in export services, with the condition that the employer does not have a branch or subsidiary in Poland.
• Type E: This visa applies to those who take up work-related tasks that do not fall into any of the previous four categories.

Non-EU foreign nationals are required to obtain a work permit:

• The work permit is valid only for the specific job mentioned in the application.
• If an employee wishes to switch jobs, they will need to apply for a new work permit.
• The validity of the work permit is limited to three years and there are various requirements for each type of permit.
• Employees must hold both a valid visa or residence permit and a work permit to work legally in Poland.
• The work permit is only valid for as long as they remain employed with the company that applied for it on their behalf. If they switch employers, a new permit must be obtained.

What are employment taxes and cost in Poland?

Employment costs in Poland for both employers and employees consist of several payroll contributions, including retirement pension, disability, labour fund, and health insurance. detailed as followed:

Employer Payroll Contributions

• 9.76% – Retirement Pension
• 6.50% – Pension
• 0.67% – 3.33% – Disability
• 2.45% – Labour Fund
• 0.10% – Guaranteed Employee Benefits Fund
• 19.48 – 22.14% Total Employment Cost

Employee Payroll Contributions

• 9.76% – Retirement
• 1.50% – Pension
• 2.45% – Sickness
• 9.00% – Health Insurance
• 22.71% – Total Employee Cost

Poland’s tax brackets in 2023 are as follows:

• 0% – 0 – 30,000 PLN
• 12.00% – 30,001 PLN – 120,000 PLN
• 32.00% – Over 120,000 PLN

Other important considerations for employers in Poland include the minimum wage, tax residency status, and VAT rates:

• The minimum wage for local hires is 3,490 PLN gross per month, and 22.80 PLN gross per hour for civil contract workers.
• Residents of Poland are subject to tax on their worldwide income, whereas non-residents are subject only to tax on the income generated within the country. To be considered a resident, an individual must spend more than 183 days a year in Poland and/or base their personal or economic interests in Poland.
• Employed individuals under 26 years of age are exempt from tax on income up to 85,528zł per year.
• The standard rate of VAT in Poland is 23.00%.

Example of an Employment cost comparison per country

Polish Employment Laws

Poland also has a well-established set of employment laws under the Labour Code that govern the relationship between employers and employees and cover a wide range of areas, including contracts, wages, working hours, holidays, and termination of employment.

The Polish labour market is highly regulated, with various protections for workers, such as mandatory social security contributions, health insurance, and pension contributions. Polish labour laws aim to ensure that employees receive fair treatment and working conditions while also providing employers with the flexibility they need to run their businesses effectively.

Probation in Poland

The probation period is timeline during which the employer can assess the employee’s qualifications and suitability for the job, and the employee can assess whether the job meets their expectations. The maximum length of the probation period depends on the type of employment contract and is as follows:

• 1 month – in the case of intending to conclude an employment contract for a fixed term of less than 6 months, 2 months – in the case of intending to conclude an employment contract for a fixed term of at least 6 months and less than 12 months.
• Up to 3 months for indefinite-term contracts (this is the maximum permissible probationary period).

During the probation period, both the employee and employer can terminate the employment relationship without notice or compensation. However, the reasons for termination cannot be discriminatory or violate the labour law provisions.

Additionally, during the probation period, the employee is entitled to the same rights and benefits as other employees in the same position, including remuneration, working hours, and leave. The probation period must be agreed upon in writing before the employee starts working, and the employer is not allowed to extend it beyond the maximum allowed duration.

Notice Period in Poland

The length of notice periods for terminating an employment contract depends on the length of service of the employee with the employer. The notice period is calculated from the first day of the calendar month following the month in which the notice was given.

The notice periods are as follows:

• 0 – 6 months of service: 2 weeks’ notice
• 6 months – 3 years of service: 1 month’s notice
• More than 3 years of service:  3 months’ notice

However, the length of the notice period can also be determined by the terms of the employment contract or a collective bargaining agreement if applicable. If an employer terminates an employment contract without notice or with shorter notice than required by law, the employee is entitled to compensation equivalent to the amount of salary they would have received during the notice period.

Paid Leave

Paid annual leave is an important benefit for employees in Poland and is regulated by the Labour Code. Under Polish law, employees are entitled to:

• 20 days of annual leave if worked less than 10 years.
• 26 days of annual leave if worked 10 years and more.

Maternity & Paternity Leave in Poland

Maternity leave in Poland is known as “urlop macierzyński” and is a legal entitlement for employees who are expecting or have recently given birth or adopted a child.

The length of the leave varies depending on the type of leave taken and the number of children born or adopted at once:

• 20 weeks for the birth or adoption of one child
• 31 weeks for two children
• 33 weeks for three children
• 35 weeks for four children
• 37 weeks for five or more children

In addition to paid maternity leave, there is also a period of paid parental leave available to either parent, which is 26 weeks (182 days) and can be taken up until the child reaches three years old.

Maternity leave can be extended under certain conditions, including:

• In the case of a difficult birth, by an additional two weeks
• In the case of multiple children being born simultaneously, by an additional two weeks
• If the child is born with a disability or chronic illness, by an additional 26 weeks
• If the mother needs to stay in hospital for more than 14 days after giving birth, by an additional 26 weeks.

Paternity leave:

• According to the Polish Labour Code, fathers can take up to 2 weeks of paid paternity leave within the first 2 years of their child’s birth.
• The leave can be taken either continuously or in parts, but each part must be at least one week long.
• If a female employee wants to return to work early (after completing the 14 weeks of mandatory maternity leave), the child’s father can use the maternity leave’s remaining balance.
• To be eligible for paternity leave, the father must be employed and have been contributing to the country’s social security system for at least 6 months before the child’s birth.
• The paternity leave benefit is calculated based on the father’s average monthly salary and is paid by the Social Insurance Institution (ZUS).

Breastfeeding Break

A breastfeeding employee is entitled to:

• Two half-hour breaks per day for a 6+ hour workday.
• One half-hour breaks per day for a 4–6-hour workday.

In the case of breastfeeding more than one child, they are entitled to two 45-minute intervals.

Sick Leave in Poland

All employees are entitled to paid sick leave linked to the number of years completed service and the employee’s age, as specified in the employment contract.

• Employees less than 50 years old are entitled to up to 33 days of paid sick leave, paid by the employer. Should the sick leave continue past day 33, Social Security (ZUS) will take on the payments from day 34 onwards.
• Employees older than 50 years old are entitled to up to 14 days of paid sick leave, paid by the employer. Should the sick leave continue past day 14, Social Security (ZUS) will take on the payments from day 15 onwards.

Sick leave is paid at 80.00% of the allowance basis or 100.00% of the allowance basis if the illness occurs during pregnancy or is caused by an accident on the way to or from work.

Severance Pay

For employers with more than 20 employees or for employees who have been dismissed by fault of the employer, the severance pay is dependent on the employee’s length of service as below:

• 1-month severance pay – less than two years of employment.
• Two months’ severance pay – between 2 and 8 years of employment.
• Three months’ severance pay – over eight years of employment.

Changes apply depending on the circumstances of dismissal:

• If an employee has worked for the company for at least 3 years, they are entitled to severance pay if they are terminated without fault of their own.
• The amount of severance pay is based on the employee’s length of service and their monthly salary, and ranges from one to three months’ salary.
• If an employee is terminated for reasons of restructuring or liquidation, they are entitled to severance pay regardless of their length of service, based on the same calculation.
• If an employee is terminated for reasons of misconduct or breach of contract, they are not entitled to severance pay.
• If an employee voluntarily terminates their employment, they are not entitled to severance pay.

Standard recruitment fees (retention)

In Poland, recruitment agencies can work with two types of contracts: contingency/success fee contracts and retained contracts:

• Contingency/success fee contracts: In this type of contract, the recruitment agency is paid a fee only when they successfully place a candidate with the client company. The fee is usually a percentage (ranging between 15% and 20%) of the candidate’s annual salary and is paid by the client company. If the recruitment agency does not successfully place a candidate, they do not receive any payment. This type of contract is often used for lower-level positions where there is a larger pool of potential candidates.
• Retained contracts: In a retained contract, the client company pays the recruitment agency a fee upfront to conduct a search for a specific position. The fee is usually a percentage (ranging from 20% to 35%) of the position’s annual salary. The recruitment agency is expected to present several qualified candidates to the client company, and the fee is paid regardless of whether a candidate is ultimately hired. This type of contract is often used for higher-level positions where there are fewer potential candidates.

In both types of contracts, the recruitment agency is responsible for sourcing and vetting candidates, conducting interviews, and presenting qualified candidates to the client company.

Challenges when recruiting in Poland

Recruiting in Poland can present some unique challenges:

• In the Polish job market, there is a high number of well-educated candidates with diverse qualifications. However, due to the current candidates’ market where they are in high demand, it takes extra effort to attract them as they actively browse job offers and receive frequent recruiter approaches.
• Besides Polish, a significant proportion of candidates are proficient in English, German, Spanish, Italian, and other languages. Nonetheless, it should not be assumed that all candidates are equally comfortable communicating in English.
• The job market faces particular talent shortages, such as software developers, manual workers, and senior specialists with foreign language skills.
• The frequent changes in tax laws create shifts in preferences for either UoP or B2B contracts among candidates. Consequently, some employers struggle to attract candidates, especially during periods when they cannot offer a B2B contract.
• In times of uncertainty, candidates expect permanent employment and a decent package of benefits.
• Many employees have become accustomed to remote work and may hesitate to return to the office environment.
• The high inflation rate (20% in December 2022) has led to significant salary expectations among candidates.
• Some recruitment agencies make overblown promises but fail to deliver on their commitments.
• The emergence of Generation Z has brought significant changes to the market, with candidates having different expectations regarding the recruitment process and employment in general. They prioritize transparency regarding salary, employment type, details about the potential manager and team, and timely feedback or updates in the recruitment process. Moreover, more candidates seek companies that align with their values and culture.

Benefits of using Recruitment agencies vs Employer of Record Services

An Employer of Record (EOR) is an organization that acts as an employer for legal and tax purposes. The EOR is legally responsible for paying international employees, as well as handling employee taxes, insurance, and benefits. The business where the employee works retains control over business operations.

A recruitment agency can also provide a number of similar services and is usually responsible for hiring directly for the jobs and employees themselves, as well as managing contracts between employer and employee.

Allen Recruitment can support any type of contract (permanent, temporary or contract). We can offer a number of high touch services that suit employers and employee’s needs. In Poland, we deliver the full service in house with no hand offs to local suppliers. We have local on the ground staff with both English & Polish language support. Client and employee contracts are issued both in English & Polish.

Our legal entity in Poland ensures local compliance with registration procedures, employment contracts, payroll, HR regulations and tax law.  Our team is equipped to source/headhunt and manage employees across Poland as well as hire and employ pre-identified candidates on your behalf. Our temporary employees are fully insured by us for the work they do for you.

We pay temporary workers on time, irrespective if you have paid us or not. Our billing solution is simple and convenient – we can bill clients in their preferred location and currency. We can provide a full breakdown of fees with no hidden charges and at a lower cost than employer of record services.

Our onboarding team smooths the local onboarding process and can help with additional services around relocation and governmental documentation. Temporary workers can use our offices if they need somewhere to work. We have local technical support to deliver the tech kit they need to get started.

We are experienced in sourcing and employing temporary staff for some of the biggest multinational companies in the world. We pride ourselves in proving the best experience for our client’s and temps, check out our reviews on Glassdoor to see for yourself!

Choosing Allen Recruitment

We think differently about recruitment and possess technological advantages that enable our recruiters to find better candidates faster. How? Our technology-led solution is built on leading machine learning search and automated communication/scheduling software.

Our solution is described as the future of recruitment and allows us to find and engage with the potential candidates that are currently considering changing positions.

Not only do we target local talent but also suitable candidates across many countries that may be interested in your role, company, and location – our candidate reach is truly global.

Our software also allows us to follow up with extensive pools of passive candidates who may be interested in your role or company but are currently sitting on the fence.

Trusted by many of the leading technology and finance companies across the globe since 1998, supporting their recruitment programs across multiple countries from our offices in Ireland, the UK, Poland, the Netherlands, Spain, France, Sweden and Belgium.

Sourcing in permanent, temporary and contract jobs with multinationals, early stage and local indigenous companies, providing an unrivalled and established recruitment service for our candidates and clients alike.

We specialize in a variety of areas, with experienced insights into areas such as Desktop/Network Admin, Software Development, Sales/Marketing, Business Support, Finance, Customer Service and HR/Recruiter roles and much more.

Are you interested in learning more about employing fantastic talent in Poland, but you’re not sure where to start? Or perhaps you simply need a little help to get on your way? Then please don’t hesitate to reach out to us at [email protected].

Allen Recruitment In Poland

Employment cost comparison per country:

The data below is based on the role of Data Analyst with medium level experience (between 3 to 8 years). Employment cost calculation does not include potential costs, which might occur during and after termination of the employment such as: sick leave, severance pay, or similar.

The employment cost comparison is subject to change.

* Total Cost in EUR = total employment cost for Employer (including taxes)

Local Terminology Reference Guide: