Change of Employment Terms and Conditions

Establishing an employment relationship involves an employer and an employee agreeing on fundamental rules of cooperation. However, in some situations, the agreed-upon terms must be adjusted. For example, due to different business need of the employer, market dynamics, the need to adapt to current economic conditions, or other unforeseen circumstances. According to the Polish Labor Code, there are three ways in which the employee’s terms and conditions of employment may be modified:

Assigning different work for a specified period

The employer may unilaterally assign the employee to perform different duties than those specified in the employment contract, provided the following conditions are met:

  • Justified need of the employer

The assignment of different work must be due to genuine, temporary needs of the employer, such as organizational or technical changes.

  • The new tasks must align with the employee’s qualifications

The new duties should be appropriate to the employee’s qualifications, which include not only education and professional experience but also skills, health, and psychological predispositions. Work that does not match the employee’s qualifications may involve tasks that are either below or beyond their qualifications.

  • No reduction in salary

Assigning different work must not result in a decrease in pay. Even if the type of work changes, the employee should receive the same salary (including all bonuses or other allowances) as before.

  • Time limit

The assignment of different work may last for a maximum of 3 months within a calendar year. This period may be cumulative (for example, if the changes take effect in October of one year, they may last until March of the following year).

Notice of alteration

An alteration notice is a unilateral action taken by the employer that permanently changes the terms and conditions of employment. In such a case, the rules regarding termination of employment contracts apply accordingly. A valid change of terms and conditions must meet the following requirements:

  • Form of the action

The notice of alteration should be in writing. This document must be hand-signed by the employer. It may also be delivered electronically, but it must include a qualified electronic signature (QES) of the employer. A scanned document or email without a QES may be considered defective.

  • Justification for the change

The employer must provide true and specific reasons for changing the terms and conditions of employment. These may relate to either the employee or the employer. Failure to provide justification is a serious formal mistake that may render the legal action invalid.

  • Employee notification

The alteration notice must inform the employee of their right to appeal to the labor court, as well as the consequences of refusing the proposed new terms (termination of the contract after the notice period).

  • Consultation with trade unions

If a trade union operates in the workplace, the employer must determine whether it represents the employee whose terms of employment are being changed. If so, the union must be informed about the reasons for and scope of the changes to allow for consultation (although the outcome of the consultation is not binding).

  • Employees under special protection

Certain groups – such as pregnant women, employees in pre-retirement age, trade union representatives, or employees on parental leave – are protected from changes to their terms and conditions of employment. Before serving an alteration notice, the employer should carefully verify whether such protection applies.

Mutual agreement

A mutual agreement is a voluntary and formal way to modify the terms and conditions of employment, which significantly limits the potential for legal disputes. An individual agreement does not require formal consultation with trade unions. However, it must not be less favorable to the employee than the generally applicable provisions of law. It can be used to change key contract conditions such as salary, workplace location, working hours, or scope of duties – as long as both parties agree to it.

AUTHOR

The article was prepared by att. Marta Rogocz from our Polish member firm Zawirska Ruszczyk. For any questions related to the Polish Labor Code or employment related topics, please reach out to her or to our representatives Patrycja Zawirska or Grzegorz Ruszczyk.