Hiring employees from Poland: employment contract and the obligations of a foreign employer

Hiring employees from Poland under an employment contract can be a commercially sensible solution for a foreign company, but it requires careful preparation from a legal, HR and payroll perspective. The fact that the employer has no registered office in Poland does not exclude the obligation to apply Polish labour law or fulfil obligations towards the Social Insurance Institution (ZUS) and the Polish tax authorities. The scope of these obligations depends, among other things, on where the work is actually performed, the rules for determining the law applicable to the employment relationship, and the employee’s tax and social insurance situation.

In practice, the biggest problems usually arise not at the stage of deciding to hire, but when implementing the correct settlement model and document workflow.

That is why, from the very beginning, a foreign employer should determine:

• in which country the employee will actually perform work and whether work in several countries is planned,
• whether it can employ a worker in Poland without establishing a company,
• whether it must register as a payer,
• who will be responsible for payroll in Poland and settlements,
• how employee documentation should be maintained,
• how to fulfil obligations related to occupational health and safety, medical examinations, leave and working time.

Errors in these areas usually do not result from a lack of diligence, but from the mistaken assumption that it is enough to sign a foreign employment contract and pay remuneration to an employee working in Poland. In practice, that is clearly not enough.

Can a foreign company employ a worker in Poland without a company or branch?

As a rule, yes. A foreign company may employ a person performing work in Poland even if it does not have a local company or branch here. However, this does not mean that no local obligations arise.

In practice, two issues must be distinguished:

• the very possibility of employing a worker in Poland,
• the obligation to fulfil employer and payer duties in Poland.

The lack of a Polish company or branch does not prevent lawful employment, but it very often means that the relationship with Social Insurance Institution (ZUS), the tax office, and the employee must be structured correctly. This also includes proper employee documentation and payroll Poland settlements in line with Polish regulations.

So, in practice, the answer is this: a company is not always required, but a well-designed employment model in Poland is almost always necessary.

At the same time, in some cases, a foreign entrepreneur may consider establishing a business presence in Poland instead of acting directly as a foreign employer, especially where the scale of operations, number of employees or long-term business goals justify a more permanent presence on the Polish market. Such a model may make employment, day-to-day operations and further expansion easier to manage. For businesses considering this option, support with company registration in Poland may be a practical next step.

Where does the employee perform work? Why the place of work matters for a foreign employer

When employing a worker from Poland, a foreign company must consider not only the employee’s place of residence or the employer’s registered office, but above all the country in which the work is actually performed. This affects, among other things, the determination of the applicable social security system, the rules for taxing remuneration and the labour law provisions governing the employment relationship.

If an employee lives and works remotely exclusively in Poland, for example for a company based in Germany, they are generally subject to the Polish social insurance system. In such a case, the foreign employer may be required to register the employee and settle social security contributions with the Social Insurance Institution (ZUS) in Poland. The fact that remuneration is paid by a foreign company does not automatically mean that the employee is subject to the rules of the employer’s country of establishment.

The situation is different when a person living in Poland performs work exclusively abroad, for example at the German employer’s office. In this case, the social security system of the country where the work is performed generally applies. The taxation of remuneration also requires an analysis of the relevant double taxation treaty.

Additional verification is required when an employee performs duties in two countries, for example partly remotely from Poland and partly at the employer’s office in Germany. When determining the applicable social security legislation, one of the relevant factors is the proportion of work performed in the country of residence. Under EU social security coordination rules, performing at least 25% of work in the country of residence is an important assessment criterion. However, in certain cases of cross-border telework, special rules may apply under the relevant Framework Agreement.

Therefore, before signing an employment contract, a foreign employer should determine in which country the employee will actually perform their duties and whether work in more than one country is planned. This helps establish the relevant employment obligations and organise HR and payroll settlements correctly.

Foreign companies employing workers who perform their duties in Poland can use getsix® support in HR & payroll services in Poland and organising remuneration and ZUS contribution settlements. We help adapt payroll processes to the obligations arising from employing workers in Poland. Contact getsix® to discuss the scope of services appropriate for your planned employment model.

Is registration as a payer required in Poland?

If the employee is subject to Polish social insurance, the foreign employer should, as a rule, regularise its status with Social Insurance Institution (ZUS). In practice, this very often means registering as a social security contribution payer and fulfilling ongoing reporting and settlement obligations.

This is important because the employment contract itself is not enough. If the employee falls under the Polish social insurance system, the employer must ensure:

• registration for ZUS purposes,
• registration of the employee for the appropriate insurance schemes,
• timely settlement of contributions,
• proper reporting.

In some models, certain obligations may be transferred to the employee, but such a solution requires careful analysis and does not replace a full assessment of the employer’s responsibilities. This applies in particular to tax, documentation and organisational matters.

The key obligations of a foreign employer in Poland

From the perspective of a foreign company, these obligations can be grouped into several core areas.

1. Obligations towards Social Insurance Institution (ZUS)

If the employee is subject to Polish social insurance, the employer may have obligations related to:

• registration as a payer,
• registration of the employee for insurance,
• calculation of contributions,
• preparation and submission of settlement documents,
• timely payment of amounts due.

2. Obligations towards the tax office

It must be determined whether, and to what extent, the foreign employer acts as a remitter of Personal Income Tax (PIT) advance payments in Poland. Annual tax information and reporting obligations must also be analysed.

3. Labour law obligations

A foreign employer employing a person in Poland should ensure compliance with Polish rules concerning, among other things:

• the employment contract,
• working time,
• annual leave,
• remuneration,
• employee documentation,
• medical examinations,
• health and safety at work.

4. Organisational and payroll obligations

Knowledge of the law alone is not enough if the company has not implemented an operational process. In practice, the following should be organised:

• the flow of data for payroll preparation,
• working time records,
• settlement of absences,
• handling employment changes,
• monthly reporting.

This is exactly why, in practice, support with HR & payroll services in Poland is so important for foreign employers employing staff in Poland.

Employee documentation – what cannot be overlooked

Polish law requires employee records and personnel files to be maintained for each employee. For a foreign employer, this means that a Polish employment relationship cannot be handled solely according to headquarters standards if those standards do not meet local requirements.

In practice, the employer should ensure:

• a properly prepared employment contract,
• personnel files,
• documents related to the course of employment,
• working time records,
• leave and absence documents,
• payroll lists or pay records,
• documentation related to termination of employment.

This is not merely a formal requirement. Incorrect documentation makes the following more difficult:

• monthly settlements,
• inspections,
• handling employment disputes,
• safe termination of the employment relationship.

That is why, even when hiring the first employee, it is worth organising this area properly with support in HR, payroll Poland and employee documentation.

Medical examinations and health and safety obligations before work begins

One of the most underestimated areas for foreign employers is compliance with medical examination and occupational health and safety requirements.

An employee should not be allowed to start work without:

• the required pre-employment medical examinations,
• a valid medical certificate,
• appropriate health and safety training.

This also applies in many cases of remote work performed from Poland. The foreign nature of the company does not in itself exclude obligations arising under Polish labour law.

In practice, this means putting in place a process covering:

• referrals for medical examinations,
• determination of working conditions for the position,
• organisation of health and safety training,
• archiving documentation confirming that these obligations have been fulfilled.

Working time and annual leave – areas requiring local compliance

Where a person is employed under an employment contract, Polish rules on working time and leave must be taken into account. This is especially important for international companies that try to apply uniform group-wide standards without adapting them to Polish law.

The most problematic areas usually include:

• working time records,
• settlement of overtime,
• hybrid and remote working arrangements,
• leave planning,
• absence settlement,
• consistency between actual practice, the contract and internal policies.

From an organisational perspective, this means that coherent processes must be maintained between HR, payroll and the managers responsible for the team.

Payroll and monthly settlements – a process that requires local compliance

For a foreign employer, payroll Poland is not just about calculating the net salary amount. It is a full process covering:

• determination of the remuneration base,
• calculation of social security contributions,
• tax settlement,
• inclusion of leave and absences,
• settlement of bonuses and other salary components,
• preparation of the payroll list,
• reporting and documentation.

Every change in employment may affect the final settlement result. In practice, this includes, among other things:

• changes in working time,
• sick leave,
• holidays and leave,
• benefits,
• bonuses,
• changes of role or employment terms.

The most common mistakes made by foreign employers

In practice, the same issues tend to recur.

The most common mistakes include:

• assuming that the lack of a company in Poland means there are no local obligations,
• failing to address obligations towards Social Insurance Institution (ZUS) and the tax office,
• treating payroll as a simple salary calculation only,
• lack of proper employee documentation,
• overlooking pre-employment medical examinations and health and safety obligations,
• inconsistency between the contract and the actual way work is performed,
• incorrect working time and absence records,
• implementing headquarters procedures without adapting them to Polish regulations.

These are exactly the kinds of errors that usually come to light only when the company grows its team, goes through an audit or needs to explain discrepancies in settlements.

What should usually be checked before hiring an employee in Poland

How to approach employing a worker in Poland safely

For a foreign employer, the safest approach is to treat employment in Poland as an implementation project, not merely as a recruitment decision.

Before signing the contract, it is worth organising:

• the employment model,
• obligations towards Social Insurance Institution (ZUS),
• obligations towards the tax office,
• rules for maintaining documentation,
• the organisation of medical examinations and health and safety compliance,
• the method for recording working time,
• the monthly flow of data for payroll.

This approach reduces the risk of costly corrections once cooperation has already started. It is particularly important for companies that want to build a team in Poland gradually, without setting up a local company immediately.

In practice, well-structured support in HR and payroll Poland helps organise both the onboarding stage for the first employee and the ongoing handling of employment matters later on. Contact us – getsix®.

FAQ – frequently asked questions

Employing workers in Poland under an employment contract is possible even without setting up a company or branch in Poland, but this does not mean there are no local obligations. A foreign employer should analyse in particular:

• the actual place of work and the applicable employment regulations,
• registration as a payer,
• obligations towards Social Insurance Institution (ZUS) and the tax office,
• employee documentation,
• medical examinations and health and safety compliance,
• working time and annual leave,
• monthly payroll settlements.

The earlier these areas are structured properly, the lower the risk of errors and the easier it is to develop a team in Poland safely and efficiently.

This article was written by the getsix® Editorial Team
getsix® provides accounting, tax advisory, HR and payroll, and business consulting services, supporting companies operating in Poland. The getsix® Editorial Team prepares practical information that makes Polish accounting, tax, and HR and payroll matters easier to understand.

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CUSTOMER RELATIONSHIPS DEPARTMENT

ELŻBIETA
NARON-GROCHALSKA
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