On January 1, 2017 an amendment to the Act on minimum pay for
work (the "Act") will come into force. The changes will
affect rules for hiring workers on contracts of mandate (Polish:
umowa zlecenie) and service contracts (Polish: umowa o
świadczenie usług), including the self-employed
New provisions of law
PLN 13 gross is the minimum hourly
Fixed fee remuneration for work under
mandate or service contracts shall amount to at least PLN 13 gross
as converted into an hourly rate.
Remuneration shall be paid at least
once a month with regard to mandate and service contracts concluded
for a period exceeding 1 month.
Obligation to confirm the number of
hours of mandate or service work provided.
Obligation to store relevant
documentation for 3 years.
The Act will not apply to contracts
for a specific task (Polish: umowa o dzieło) or
mandate/ service contracts where commission is the only
This table sets out possible practical problems you might face
when applying the Act.
The Act vs current contracts
The Act applies to all contracts in force on January 1, 2016
and all new contracts thereafter. The principal / service recipient
("Principal") should review the existing contracts for
compliance. Amendments to contracts (e.g. by an annex signed by
both parties) may become obligatory.
Failure to review contracts for compliance may lead to unlawful
underpayment. If so, the mandatory / service provider
("Worker") may claim a supplementary payment to bring
his/her remuneration up to the minimum hourly rate
Confirmation of number of hours of mandate / service
An accurate record must be kept of hours of mandate / service
provision worked. The record: 1. may be kept in written, electronic
or documentary form 2. should state the total number of hours spent
on mandate / services provision in the period and 3. should be made
at least once a month.
In case of failure to establish rules on confirmation of
number of hours of mandate / service provision, the Worker shall
provide a statement of hours to the Principal prior to the
remuneration date. In any dispute, the burden of proof will be on
the Principal to disprove overstated hours.
Overstating hours of mandate / service provision by the
If possible, the parties should agree in the contract that
Activity X will be completed within Time Y. This will mitigate the
risk of overstating the number of hours. A relevant procedure
should cover the situation where special circumstances require
longer hours than agreed. The procedure may include specific
consent from the Principal for extra hours.
Lack of time limits may lead the Worker to overstate the number
of hours in order to obtain the Supplement.
Monthly remuneration and pay schedule
The Act provides that if the contract is concluded for a period
exceeding 1 month, the remuneration reflecting the minimum hourly
rate must be paid at least once a month. If the hourly rate is
higher than PLN 13 gross, it seems that the difference exceeding
the minimum hourly rate may be paid, e.g. after completion of the
mandate / services.
Failure to pay remuneration at or above the minimum hourly rate
may be subject to a fine of PLN 1,000 – PLN 30,000 (approx.
EUR 225 – EUR 6,770).
The Principal is obliged to store the documents providing for
the manner of confirmation of the number of hours of mandate /
service provision and documents of confirmation for 3 years after
the remuneration became payable.
Dentons is the world's first polycentric global law firm. A
top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm
is committed to challenging the status quo in delivering consistent
and uncompromising quality and value in new and inventive ways.
Driven to provide clients a competitive edge, and connected to the
communities where its clients want to do business, Dentons knows
that understanding local cultures is crucial to successfully
completing a deal, resolving a dispute or solving a business
challenge. Now the world's largest law firm, Dentons'
global team builds agile, tailored solutions to meet the local,
national and global needs of private and public clients of any size
in more than 125 locations serving 50-plus countries.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The event will be attended by hundreds of students and representatives from top Italian and international law firms, who will have the opportunity to meet and discuss. For many students this will be the very first approach with the legal professional world, and for us it will be a great occasion to meet the young talents of the future.
Dentons is sponsoring the conference titled “Non-performing loans market, between demand and offer” organized by SDA Bocconi School of Management, one of the most prestigious business schools in the world.
The conference will be dedicated to present the results of an innovative and extensive research on the non-performing loans market, by making a clear distinction between demand and offer. The research tackles problems and opportunities perceived by the operators dealing with the NPL market.
The seminar will take place on 31 March 2017. It aims to provide German companies with an overview of the latest developments in relation to insurance coverage, banking transactions and legal aspects of doing business with Iran.
In SSE Generation Limited v Hochtief Solutions AG and another decided on 21st December 2016, the Court of Session in Scotland considered a contractor's potential design liability under the NEC Form of Contract.
Case law concerning the Agency Worker Regulations remains limited. We recently advised a recruitment business involved in a dispute with a "temp" and a hirer regarding who was liable for an alleged breach of AWR Regulation 5.
Since then, it has been confirmed that the General Data Protection Regulation will apply to the UK, despite Brexit.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).