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Posted on Categories employment contract

How much compensation for a non-compete clause on employment termination? When a regulation is short, doubts are many

The shorter a regulation, the more questions and doubts it raises. And so it is in the case of Article 101(2) § 3 of the Labour Code, which regulates the minimum amount of compensation for a non-compete clause (or restrictive covenant) after employment termination. Compensation may not be lower than 25% of the remuneration the employee received before employment termination, for the duration of the competition ban. How this is interpreted is important. 

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Posted on Categories contract termination, employment contract

Sickness absenteeism as a cause for employment termination?

Employee sickness and absenteeism from work are inherent business risks which the employer has to take into account. An employee’s absence from work can be so frequent that it significantly affects the functioning of the workplace. In such situations, it may be in the employer’s interest to terminate such an employee’s employment contract and hire someone else to take their place. Labour Code provisions oblige employers to specify the reason justifying such a decision in the notice terminating indefinite-term contracts (Article 30 § 4 of the Labour Code). Does regular sickness absenteeism constitute an independent and sufficient reason for termination?

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Posted on Categories hiring foreigners

Change of entity entrusting performance of work to a foreign citizen in the context of a permit for temporary residence and work

At present, a change of work does not constitute any kind of extraordinary situation, with foreign citizens not being an exception to this. However, they do not all have unlimited access to the labour market. Quite the contrary: employment is often dependent on prior acquisition of a work permit. And what happens in situations where a change of employer takes place in the course of proceedings to obtain a permit for temporary residence and work? What are the changes that do not require a change to a decision and what are the ones requiring the lodging of a respective motion? And finally, is it possible to change employer after receiving a residence card?

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Posted on Categories Social Insurance

Reporting specific-task contracts – a new obligation for payers of contributions and individuals

From 1 January 2021, payers of contributions and individuals commissioning work will be obliged to inform ZUS, (Zakład Ubezpieczeń Społecznych, Poland’s social insurance institution) about concluding specific-task contracts (umowy o dzieło) that are not subject to social security and health insurance contributions. Thanks to this new obligation, ZUS will be able to verify the existence of the social security obligation of persons performing specific-task contracts. However, this brief regulation may raise many practical reservations.

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