- Phase
- Act of 26.06.1974 -Labour Code;
Act of 13.03.2003 on special principles of termination of employment contracts with employees for reasons not related to employees - 'Collective Dismissals Act';
Act of 21.08.2004 on publicly-funded health care services;
Act of 26.07.1991 on the personal income tax;
Regulation of the Minister of Labor and Social Policy of 18.12.1998 on the detailed rules for establishing the basis of assessment of pension contributions
- Native name
- Ustawa z dnia 26.06.1974 r. -Kodeks pracy;
Ustawa z dnia 13.03.2003 o szczególnych zasadach rozwiązywania z pracownikami stosunków pracy z przyczyn niedotyczących pracowników;
Ustawa z dnia 21.08. 2004 r. o świadczeniach opieki zdrowotnej finansowanych ze środków publicznych;
Ustawa z dnia 26.07.1991 r. o podatku dochodowym od osób fizycznych;
Rozporządzenie Ministra Pracy i Polityki Społecznej z dnia 18.12.1998 r. w sprawie szczególnych zasad ustalania podstawy wymiaru składki na ubezpieczenie emerytalne i rentowe
- Type
- Severance pay/redundancy compensation
- Added to database
- 08 May 2015
Article
Article 23(1) of the Act of 26.06.1974 -Labour Code;
Article 8 and 10 of the Act of 13.03.2003 on special principles of termination of employment contracts with employees for reasons not related to employees - 'Collective Dismissals Act';
Article 81 section 1 of the act of 21.08.2004 on publicly-funded health care services;
Article 12 of the Act of 26.07.1991 on the personal income tax;
§ 2 section 3 of the Regulation of the Minister of Labor and Social Policy on the detailed rules for establishing the basis of assessment of pension contributions
Description
The day after notice periods ends, employees are entitled to a severance payment equal to:
- the monthly remuneration, if the length of service is for less than two years;
- twice the monthly remuneration, if the length of service is from two to eight years;
- three times the monthly remuneration, if the length of service is over eight years.
The duration of employment is calculated including previous employment periods, if a transfer of undertakings had taken place before article 23(1) of the Labour Code . The amount of the severance payment cannot exceed 15 times the minimum remuneration for work as defined under separate provisions. The severance payment is calculated based on the way of calculating the cash in lieu of holiday leave.
Severance pay is paid by employers employing at least 20 employees and only in two situations:
- if the termination of employment is based on collective dismissal (within 30 days, dismissals of at least 10 workers in companies with 20-99 employees, at least 10% of workforce in companies with 100-299 employees or at least 30 dismissals in companies employing more than 300 employees);
- in case of individual termination of employment, if the termination is due to reasons not attributable to the individual employee.
In other words, employees in companies employing less than 20 employees have no right to the redundancy payment.
If the company is liquidated or bankrupt, the liquidator or official receiver is obliged to pay severance from the company assets. If this is not possible, he/she must apply to the Employee Benefits Guarantee Fund, for supplementing the missing funds. In any case the affected employee is compensated.
Sources
- Collective Dismissals Act (in Polish)
-
Ius Laboris (2009), Collective Redundancies Guide, Brussels
-
Kuczkowski, L. (2008), 'Poland', in van Kempen, M., Patmore, L. and Ryley, M. (eds), The Redundancy Law in Europe, Alphen van den Rijn
Citation
Eurofound (2015), Poland: Severance pay/redundancy compensation, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/severance-payredundancy-compensation/poland