Great talent is everywhere, and if you’re looking to hire remote, global talent in Europe, Poland may be your next stop — thanks to a booming economy largely unscathed by high unemployment rates seen all across Europe as a result of the pandemic.
For employers looking to tap into Poland-based talent, hiring employees may seem like a complex process — however, it doesn’t have to be. An Employer Of Record (EOR) can be ideal for companies looking to hire and pay talent around the world without the legal and administrative hassle. For example, you may not know that when an employee in Poland works on Sundays, holidays, at night, or on an employee’s day off, overtime is paid at 200% of the regular wage. To navigate the nuances of Poland’s working culture and ensure a seamless process, work with an EOR. This article will walk you through the reasons, processes, and advantages of hiring employees in Poland through an EOR.
Why Hire Talent in Poland?
Poland, situated in Central Europe, is bordered by Germany and the Czech Republic to the west, Slovakia to the south, Ukraine and Belarus to the east, and Lithuania and Russia to the north. Through the Baltic Sea, it has easy access to Scandinavia. Poland’s geographical location enables citizens to travel to Denmark, Sweden, and Germany for higher education, free of charge. Exposure to these prosperous European nations and the opportunity to study at their universities provides the people of Poland with valuable insight and a first-rate education.
For decades Poland’s economy has been dominated by three leading industries: agriculture, manufacturing, and mining but in recent years sectors like Aerospace have boomed. With aerospace, for example, many companies have also located their research and development centers here which means Poland is home to thousands of highly qualified engineers and scientists. Forbes even ranked Poland 34th out of 161 countries for Best Countries for Business.
Poland also operates in a Central European time zone and shares this with many countries in Europe from Albania to Vatican City and even some African countries including Morocco, Tunisia, and Algeria. This makes remote global work a no-brainerfor Poland-based employees looking to integrate seamlessly into meetings and day-to-day business operations.
How Can I Legally Hire an Employee in Poland?
To hire new employees in Poland, your business must have a local legal entity. The process to establish a local entity can be complex, time-consuming, and expensive. Doing so is only worth it if you are planning to set up long-term operations in the country.
This is where EORs come in handy. An EOR acts as a broker for hiring talent outside of the country you legally operate within. It will already have an entity set up and the legal framework in place to do the hiring for you. This gives you more time to focus on managing relationships with your employees and growing your business. Going through an EOR is a simple way to hire talent in Poland without all the legal hassle.
What Does an EOR Do?
Simply put, EORs take care of the legal procedures while you manage your employees. The legal frameworks for hiring in Poland can be quite different from those in the US and Canada. EORs handle worker visas and work permits, employment contracts, payroll, local compliance, termination, and any other HR services.
To learn more, check out our article on everything there is to know about EORs.
Contracts and Documentation
An EOR will handle the tedious administration involved in preparing contracts and will guarantee that employment contracts are compliant with Poland’s regulations. EORs will also help collect the correct documentation, such as employment offers, signed contracts, banking information, and more. This way, you can focus on growing your business and connecting with your employees.
Employee Insurance and Benefits
When the world is your competition, it pays to incentivize new and existing hires with attractive benefits like medical, dental, vision, and life insurance, and retirement savings plans. A comprehensive EOR will have those kinds of benefits built into its service offering.
Vacation and Public Holidays
In Poland, employees are entitled to 20 days of annual paid vacation and once they hit a 10-year milestone of employment this increases to 26.
Public holidays in Poland consist of religious and national holidays observed by residents across the country. There are 13 public holidays and as of 2023, they include:
- January 1: New Year’s Day
- January 6: Epiphany
- April 9: Easter Sunday
- April 10: Easter Monday
- May 1: Labor Day/May Day
- May 3: Constitution Day
- May 28: Whit Sunday
- June 8: Corpus Christi
- August 15: Assumption of Mary
- November 1: All Saint’s Day
- November 11: Independence Day
- December 25: Christmas Day
- December 26: Second Day of Christmas
An EOR will help companies navigate the public holidays in Poland and keep track of paid time off and different types of leave.
Taxes
Employers in Poland pay 19.21% to 22.41% of the employee’s salary in taxes which includes pension and disability insurance, accident insurance, a labor fund, and an employee-guaranteed benefits fund.
Understanding the tax laws in Poland can be a long and complicated process, but it is necessary to ensure you are paying employees compliantly and abiding by local Poland-specific laws. Thankfully, an EOR can handle the logistics and ensure that payroll is processed properly and per the regulations in whichever country you are operating.
What Are Your Responsibilities?
While the EOR handles everything related to legal and HR processes, everything else will fall to you as the employer. You take care of your global staff in the same way you would your local hires. That means search and recruitment, company onboarding, training, management, day-to-day communications, progress tracking, and so on. With an EOR taking care of the legal complexities, you’re able to focus on building connections with your remote staff.
While the relationship with the employee won’t be all that different through an EOR, you need to be clear with your staff on the legalities of their contracts. Of course, retention is also up to you. You will need to consider how you help your staff grow and succeed in their new roles at your organization.
What Are the Advantages of Going Through an EOR in Poland?
Using an EOR to hire talent in Poland will save you time, reduce costs, and mitigate risks.
Setting up an entity for hiring in Poland is time-consuming and frankly, can be a huge headache. Since the EOR is already set up to hire employees in the country, it will be faster and easier to start hiring right away. In fact, the process won’t be that much different from hiring locally.
The set-up and HR costs can also be quite high, so going through an EOR can save you money. You will also be paying lower salaries than you would be in the US and Canada, so you’re bound to see some positive impact on your bottom line.
Most importantly though, you’ll be mitigating the risks associated with non-compliance. Because EORs have extensive experience in navigating complex local HR policies, you won’t have to worry about any issues arising from improper hiring practices.
How Do I Choose the Right EOR for Me?
Before selecting a vendor, consider these 4 things:
- Local Experience: Does the EOR have experience hiring in Poland? As discussed earlier, one of the biggest advantages of hiring an EOR is the assurance of compliance. Often, this requires a lot of past experience, so check the EOR’s track record in the country.
- Service Scale: Do you need someone who offers a full suite of services? If you want happy employees that you can retain in the long run, then you may need to offer them benefits like insurance and other welfare. Some EORs have systems in place for this but others may not. Also, certain EORs will offer consulting services to optimize your global hiring practices.
- Data and Systems Security: Poland has to adhere to the European Union’s General Data Protection Regulation (GDPR), meaning it has vastly different data regulations than other countries, especially Canada and the United States. Working with an EOR guarantees compliance with the GDPR and emphasizes the importance of protecting intellectual property. It’s critical to keep systems secure in a remote work environment, so look for a vendor that outlines ways they plan to keep information sensitive and secure.
- Collaboration: Ensure your vendor’s approach to communication and collaboration with its clients is aligned with your organization’s approach. Love having a point of contact person? Perhaps all you need is access to a Slack channel so you can quickly reach your vendor. Whatever your communication style, ensure your vendor can meet your needs.
Borderless: The Employer of Record Your Company Needs
Need an EOR? Look no further than Borderless. We can help you establish a business entity in Poland – giving you access to a massive talent pool without all the headache of traditional global expansion.
Book a demo today and see how we can help you quickly and easily hire, onboard, pay, and retain the talent your organization needs.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
