In Poland, employers have several options for terminating an employment contract with an employee. However, each method carries its own legal implications and consequences. Understanding these options is crucial to ensure compliance with Polish labour law and to minimize potential risks for both parties involved.
Below, you will find a concise overview of the key methods employers can consider when terminating an employment contract and the specific circumstances in which they may be applied.
Ways of termination of employment
Terminating a binding employment contract in Poland is possible:
- Upon notice – with observance of a period of 2 weeks, one month or three months which depends on an employee’s length of service;
- Without notice – immediate dismissal, which applies among others in case of a serious breach of the employee’s basic duties by an employee, i.e. so-called “disciplinary termination”;
- By mutual agreement;
- Due to expiration of time for which the contract of employment has been concluded.
Reasons for termination
Whenever an employer terminates an employment contract upon notice or without notice, they are obliged to present in the termination letter, in written form, justifiable, specific and true reasons for termination of the contract.
Every employee is allowed to appeal against the termination to the labour court. The burden of proving that the termination was justified is on the employer. An employee can raise a claim for reinstatement into the job or for compensation.
Termination due to reasons unrelated to an employee
Specific regulations govern the termination of employment contracts for reasons unrelated to the employee. These provisions apply primarily to larger employers, defined as those employing at least 20 employees. Under this framework, employment may be terminated due to factors such as organizational restructuring, economic challenges, or other reasons not attributable to the employee’s performance or behaviour.
When employment is terminated in this manner, employees are generally entitled to severance pay. The amount of severance is determined by the length of the employee’s service with the company and is designed to provide financial support during the transition period.
Mutual agreement
The mutual agreement allows the parties to freely decide on the date of termination. Such agreement usually does not include any reasons for termination, which eliminates the majority of possible legal risks.
The legal basis for challenging the mutual termination agreement are also different than in the case of the termination notice.
If an agreement to terminate the employment contract is reached as part of economic layoffs, such as collective redundancies, the employee is still entitled to severance pay. This ensures financial compensation regardless of the consensual nature of the termination.
Employee’s certificate of employment
The actual reason for termination (irrespective of whether it was upon notice or without notice) is not mentioned in an employee’s certificate of employment – i.e., a document issued at the end of an employment contract confirming basic pieces of information related to employment.
The certificate of employment mentions only the manner in which the contract was terminated (as in points 1-4 above in section “Ways of termination of employment“) and by whom. It is forbidden to disclose specific reasons for termination in this document. A future employer of the terminated employee does not have any legal basis for raising a claim against the former employer due to a lack of knowledge about the reasons for termination.
The article was prepared by att. Monika Aniszewska from our Polish member firm Zawirska Ruszczyk.
Do you have questions on this topic or any other employment related question? Our associates would be happy to advise you and support you in all questions that arise.
