Employment contract termination is one of the most important legal actions in relation to an employer – employee, as it terminates the legal relationship binding them. An employer must diligently prepare for termination of an employment contract. Any error on his part may result in the need to pay compensation to an employee or even to reinstate the employee at work on previous terms.

The Labour Code stipulates time limits after which an employer’s claims expire for remedy of damage inflicted by an employee due to failure to perform or improper performance of employee duties. Under Art. 291 § 2 of the Labour Code, claims of this kind expire one year from the day on which the employer became aware of the damage done by an employee, but no more than three years from the time the damage was inflicted. It is not entirely clear when these periods should be considered to start.

Under the Labour Code (Art. 100 § 2(6)), an employee has a duty to abide by the principles of community life, but what does this entail?

A common phenomenon on the Polish labour market is for an employee to establish an individual business and then pass from an employment contract to a cooperation agreement between business entities (B2B contract). But when deciding to modify their form of cooperation, the parties must ensure that the new legal relationship is framed in compliance with its proper classification.