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Ukrainians boost our GDP but have no right to permanent residence

Several million Ukrainians now call Poland home, creating a market size comparable to our neighbouring Baltic states. Many of these individuals are used to the goods and services they enjoyed back home. This fueled a demand that has attracted Ukrainian businesses to Poland, from bakeries and beauty salons to online stores and even courier companies. – Aleksander Dżuryło comments for WNP.PL.

Full article in Polish avialible: here.

Termination: pressure is not a threat

It is not unusual for employers to present employees with two options when informing them about ending their employment (or the intention to do so): termination by mutual agreement or summary dismissal. While this might seem like offering options, a recent court case highlights a potential pitfall – employees may interpret this as a threat, not a genuine choice. By understanding the key takeaways from this ruling, employers are better equipped to navigate such situations and prevent similar court disputes. – Patryk Kozieł comments for Rzeczpospolita.

Full article in Polish avialible: here.

Downtime allowance eligibility challenged again

Article 9(6) of the Social Insurance System Act states that those on parental leave remain insured if they do not otherwise qualify for a pension or other forms of social insurance.  A key point is that having another form of insurance negates their insurance status derived from unpaid parental leave. However, the wording of the COVID-19 emergency law does not mean they cannot have another title to insurance but simply refers to not being covered by insurance under another title. Entrepreneurs on parental leave are only subject to insurance under one title: their business activity. Regulations are clear on this, making ZUS’s position unfounded – attorneys Łukasz Chruściel and Paweł Sych comment for Dziennik Gazeta Prawna.

Full article in Polish avialible: here.

New EU Blue Cards: full labour market access for non-nationals, new challenges for employers

On 9th February 2024, a bill amending the Polish Act on foreigners and other acts was published. This update aims to implement the new EU Blue Card Directive and partly digitalise the residence permit application process. Both changes have the potential to streamline the process for non-nationals seeking employment in Poland and their Polish employers. However, some aspects raise concerns and could create new challenges for businesses. – Tomasz Rogala and Ewa Wysocka comment for Dziennik Gazeta Prawna.

The article in Polish avialible here.

Small Word, Big Consequences: when conjunction becomes a bone of contention between ZUS and the Supreme Court

A seemingly insignificant detail, like a single conjunction in a legal clause, can spark major disputes that end up in court. A famous example involved the word “or” used with “magazines” in a past media bill. Now, the debate centres around the conjunction “and” in Article 5(2) of Poland’s Social Security Act. This provision exempts non-nationals from social security contributions if “their residence in Poland is not permanent and they are employed in foreign embassies, consulates, or international institutions”. However, the interpretation of “and” has become a source of disputes between businesses and the Social Insurance Institution (ZUS). While courts, including the Supreme Court, say the word “and” means either condition works (alternative), ZUS argues it means both conditions must be met (conjunction). – Łukasz Chruściel comments for Rzeczpospolita.

The article in Polish avialible: here.

Companies can now seek compensation for online defamation

The Supreme Court’s recent decision empowers businesses to hold individuals accountable for defamatory online opinions. Notably, companies still need to meet specific criteria to claim compensation. They must prove that the defamatory content actually harmed their operations. However, this ruling represents a significant shift in legal precedent, confirming that companies have legal recourse to protect their reputation. – Karolina Kanclerz and Maciej Przepióra comment for Rzeczpospolita.

The article in Polish avialible here.

GMI Legal Update: Amendment to Ukrainian Special Act Has Entered into Force – Legal Stay of Ukrainian Citizens in Poland Officially Extended until June 30, 2024

On February 22, 2024, the amendment to the so-called Ukrainian Special Act, i.e. the Act on assistance to citizens of Ukraine in connection with an armed conflict on the territory of this country entered into force (after publication in the Journal of Laws on February 21, 2024). Special solutions related to the right of residence and work of Ukrainian citizens in Poland have been extended until June 30, 2024.

The details of the immigration solutions introduced by the amendment to the Special Act are unchanged as compared to the original draft bill which we discussed here.

Thus, the new regulations introduce:

  • Extension until June 30, 2024 of the right of residence in Poland for holders of the so-called UKR status, i.e. persons who came to Poland in connection with hostilities conducted in Ukraine.
  • Extension until June 30, 2024, of the right of residence in Poland for Ukrainian citizens whose visas, temporary residence permits or the right to stay in visa-free travel expired after February 24, 2022.
  • Maintaining (without fixed term) right to work in Poland for legally residing Ukrainian citizens, without the need to obtain a work permit, based on a notification submitted by the employer to the labor office.
  • Extension until June 30, 2024 of the period in which a special 1-year temporary residence permit is granted to a citizen of Ukraine in a situation where he or she does not meet the usual conditions for granting a temporary residence permit.
  • Extension until June 30, 2024, of the facilitations in the procedure for obtaining a temporary residence permit for the purpose of running a sole proprietorship.

Download PDF here.

HR Legal Update: Social fund contribution jumps in 2024: There’s still time to reduce it!

The basic Company Social Fund (ZFŚS) contribution per employee in 2024 jumps significantly to PLN 2417.17, compared to 2023. That is an increase of PLN 754.17 in the first half of the year and PLN 502.80 in the second half, which represents the most substantial rise in the contribution observed in recent years. This significant change is likely to have a material impact on overall staffing costs, potentially exceeding initial budgetary assumptions.

The final amount of the basic ZFŚS contribution in 2024 will depend on the average number of full-time employees (FTE). Here is a breakdown of what to expect:

  • 100 employees – PLN 241,714.13 (increase by PLN 62,848.63);
  • 500 employees – PLN 1,208,570.63 (increase by PLN 314,243.13);
  • 1 000 employees – PLN 2 417 141.25 (increase by PLN 628 486.25).

However, it will also depend on the categories of employees and the increases applied for those categories. For instance, the 2024 contribution for employees performing work in special conditions or of a special nature is PLN 3,222.86.

Is it possible to mitigate the impact of contribution increases?

The good news is that employers have options to reduce the financial burden of the increased ZFŚS contribution. Regulations allow for modifying the contribution amount through collective bargaining agreements or remuneration regulations. However, any such change requires reaching an agreement with employee representatives.

The first payment for the ZFŚS (75% of the calculated contribution) is due on 31st May. Therefore, exploring potential adjustments to the contribution rate before this deadline is highly recommended.

It is worth noting that recent media reports suggesting that the contribution rate can only be changed by the end of January are inaccurate.

Our team is available to assist you in evaluating your options for reducing the contribution impact or adapting your employee benefit programs, including those financed by the Fund. Please do not hesitate to contact us for further guidance.

Labour courts struggle as employee cases surge after law changes

In my experience, the length of labour courts proceedings has noticeably increased. However, I do not feel the official statistics fully reflect this reality. The statistics on case duration might be skewed by the inclusion of settlements. While these often conclude after just one or two hearings, other cases can drag on for years – sometimes even five – observes attorney Sławomir Paruch in an interview with Dziennik Gazeta Prawna.

The article in Polish avialible: here.

Extended aid for Ukrainian refugees. Sejm passed a new act

The special arrangements for people who arrived in Poland due to war outbreak in Ukraine have been extended until 30 Jun 2024. Refugees can still legally stay, work, and receive child benefits. Many industries rely on Ukrainian workers, such as manufacturing, transport, construction, and trade. Ukrainian citizens also support the medical industry, but the procedures of employing medical professionals are still very restrictive. – Karolina Schiffter comments for Rzeczpospolita.

The article in Polish is avialible: here.

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