The employment relationship ceases as a result of:

• termination of the employment relationship on the basis of declarations of intent (legal actions),

• expiry of the employment relationship due to specific legal events.

Termination of the employment relationship 

Agreement of the parties

An agreement of the parties is an agreement which terminates the existing employment relationship. Any contract of employment may be terminated on this basis. It may be terminated at any time determined by the parties. In this case, the restrictions imposed on the employer upon termination of the contract of employment (e.g. concerning periods of protection against dismissal) are not applicable.

Termination of the contract of employment by notice – “Notice period”, “Protection against termination of the contract of employment”, “Consultation of the contract termination with the workplace trade union organisation”, “Validity of termination of the contract of employment”, “Special protection against dismissal”, “Unlawful termination of the contract of employment”

Notice of termination of the contract of employment constitutes a declaration of intent of one of the parties to the employment relationship, aimed at terminating the employment relationship at the end of the period referred to as the notice period.

The notice, i.e. declaration of intent to terminate the contract of employment (both by the employee and the employer) should be submitted in writing.

A letter from the employer terminating a contract for an indefinite period must include:

• the reason for the termination,

• letter of rights of the employee to appeal against the termination before the labour court.

Notice period

The notice period is the time that elapses between the submission of the declaration of intent and the date on which the employment relationship is terminated.

The length of the notice period for a contract concluded for a trial period is determined by the length of the trial period. It amounts to:

• 3 working days if the trial period does not exceed 2 weeks;

• 1 week if the trial period is longer than 2 weeks;

• 2 weeks if the trial period is 3 months.

The length of the notice period for contracts for an indefinite period and fixed-term contracts depends on the period of employment by the employer concerned.

The notice period amounts to:

• 2 weeks if the employee has been employed for less than 6 months,

• 1 month if the employee has been employed for at least 6 months,

• 3 months if the employee has been employed for at least 3 years.

Notice periods counted in months end on the last day of the month.

The notice period counted in weeks ends on a Saturday and must cover a full week or two weeks.

Notice periods of fixed-term contracts or contracts for an indefinite term may be shortened.

Unilateral reduction of the notice period by the employer may occur if the contract of employment (fixed-term and for an indefinite term) is terminated because of:

• bankruptcy; or

• the winding-up of the employer; or

• for reasons unrelated to the employee.

The notice period may be reduced to 1 month at most. Due to the reduction of the notice period, the employee is entitled to compensation for the remainder of that period.

The reduction of the notice period may also take place by mutual agreement of the parties after the termination has been effected. However, this does not change the way in which the contract of employment is terminated. This still constitutes termination by the employer. In such a case, the employer is not obliged to pay compensation.

Protection against termination of the contract of employment

Universal protection against dismissal applies to contracts of employment for an indefinite period. It entails:

• consultation of the contract termination with the workplace trade union organisation,

• validity of termination of the contract of employment.

Consultation of the contract termination with the workplace trade union organisation

Prior to submitting a declaration of intent to terminate the contract of employment for an indefinite period, the employer should notify the trade union organisation representing the employee of this fact in writing. At the same time, it should provide reasons for the termination of the employment relationship.

This applies to an employee:

• belonging to a trade union; or

• where the trade union has provided them with such protection at their request.

The trade union may, in such circumstances, submit a substantiated objection in writing within 5 days of receipt of the notification.

This objection is not binding on the employer. It only presents the position of the trade union that the employer is supposed to consider when deciding on the termination.

Validity of termination of the contract of employment

There is no catalogue of valid reasons for termination . Validity of termination is a general clause, i.e. general, imprecise wording that allows for decisions to be adapted to the circumstances.

In the light of the case law of the courts, the cause should be of specific, genuine and substantial nature. It may not be too general, e.g. stating that an employee has failed to perform their duties.

A genuine cause is that which is reflected in reality and thus the employer is capable of indicating the facts on the basis of which it has determined the cause. A substantial cause is that which, by its very nature, ought to result in termination of the contract of employment – may not be trivial (for example, being several minutes late is not generally a substantial cause, but e.g. loss of trust towards an accountant who has breached tax or accounting regulations is such a cause).

It is accepted that improper performance of duties constitutes grounds for termination regardless of whether the employee is culpable. However, as a general rule, a one-off minor breach of those duties does not justify termination.

Special protection against dismissal

It applies to certain groups of employees due to the personal circumstances of the employee or their functions.

Special protection against dismissal may consist in:

• the obligation to obtain the consent of the competent authority to terminate the contract of employment (e.g. some trade unionists, social labour inspector, councillor),

• the prohibition to give notice of termination of the contract of employment during certain periods or for certain employees (e.g. during the period of annual leave, unpaid leave, during the period of 4 years before reaching the retirement age if the employee becomes entitled to a pension upon reaching that age, during a period of justified absence due to sickness),

• the prohibition to give notice of termination or to terminate the contract of employment (e.g. in the case of pregnant women, employees during maternity or parental leave).

 

Unlawful termination of the contract of employment

Unlawful termination of the contract of employment occurs if the termination is not justified.

It may also consist in infringement of the provisions governing the termination of contracts of employment, such as:

• failure to provide the cause for the termination,

• failure to consult the intention to terminate with the trade union organisation,

• breach of special protection against the dismissal of certain groups of employees, in particular the prohibition on terminating a contract or the obligation to obtain the consent of the competent authority,

• application of a shorter notice period than is required,

• failure to observe the prescribed form,

• failure to inform the employee of the means of redress available to them against termination.

In the event of unlawful termination of a contract of employment, the employee may appeal to the labour court and request:

• that the termination be deemed ineffective,

• reinstatement of the employee to work on previous conditions; or

• compensation.

A decision on deeming the termination ineffective may be issued before the end of the notice period. Such a decision prevents further run of the notice period, which thus does not lead to termination of the contract of employment.

A decision to reinstate the employee to work on the previous conditions is made if the notice period has expired and the employment relationship has been terminated. The court may only reinstate the employee to work and therefore rule on their re-employment on the previous conditions. When reinstating the employee to work, the court also decides on the remuneration for the period of remaining without work of no more than 3 months and no less than a month.

The remuneration is payable for the entire period of remaining without work in the case of:

• employees during the period of 4 years before the retirement age,

• pregnant employees,

• employees on maternity, parental or paternity leave,

• when the termination of the contract of employment is restricted by a special provision (e.g. for a trade union activist, social labour inspector).

A decision on compensation entails financial compensation. The compensation amounts to:

• in the case of contracts for an indefinite period – remuneration for the notice period,

• in the case of fixed-term contracts – remuneration until the end of the period for which the contract was supposed to apply, no more than the notice period.

In the event of applying a shorter notice period, the contract of employment is terminated at the end of the correct notice period.

Termination of the contract of employment without notice

It is referred to as termination with immediate effect, taking place as soon as such a declaration is made.

Such termination should be made in writing. The letter should indicate the cause for the termination. The employer should also include in it a letter of rights regarding appealing against such a termination to the labour court.

Termination of a contract of employment without notice is possible only in the circumstances referred to in the provisions of the labour law.

• Reasons attributable to the employee – “Termination of a contract without notice through the fault of the employee”, “Termination of a contract without notice without the employee’s fault”

The contract may be terminated without notice through the fault of the employee or without the employee’s fault.

Termination of a contract without notice through the fault of the employee:

a serious breach of basic duties by the employee. It occurs when:

• the employee has violated at least one of the basic employee obligations (such as leaving the workplace without a justification, coming to work while inebriated); and

• the employee has committed such an infringement due to intentional guilt or gross negligence.

It is for the employer to assess whether such an infringement has occurred.

• the employee committed an offence during the term of the contract of employment, which prevents their continuous employment on the occupied position. The condition is that the offence be obvious or established by a valid judgment of the court,

• the employee has lost the licences necessary to carry out his job for the reasons attributable to the employee.

Termination of a contract of employment for these reasons may take place before the end of 1 month after the employer has become aware of the circumstances that justify termination of the contract.

Termination of a contract without notice without the employee’s fault:

• incapacity of the employee for work - as a result of an illness - lasting:

• • more than 3 months – if the employee has been employed by the employer for less than 6 months,

  • more than the total period of collecting remuneration and allowance in case of illness (182 days) and collection of rehabilitation benefit for the first 3 months – if the employee has been employed by the employer for at least 6 months or if the incapacity for work was caused by an accident at work or occupational disease,

• justified absence of the employee from work for the reasons other than those mentioned above, which lasts for more than 1 month,

• the employee’s absence from work due to caring for a child for longer than the period of allowance collection,

• isolation of the employee due to an infectious disease which lasts longer than the period of remuneration and allowance collection.

Termination of a contract of employment without notice is the employer’s right if the conditions laid down in the legislation apply. The employer may, however, not avail itself of that right.

However, termination of a contract of employment without notice may not take place after the employee appears at work due to cessation of the reason for the absence.

• Reasons attributable to the employer:

• a serious breach of the employer’s basic obligations (e.g. the obligation to pay the employee the full amount of remuneration on a timely basis, to provide the employees with safe and hygienic working conditions),

• once a medical certificate is issued stating the work’s harmful effects on the health of the employee and the employer does not transfer them to another job, appropriate to their health condition and professional qualifications, within the time limit specified in the medical certificate.

 

Infringement of the provisions governing termination of the contract of employment without notice:

Such an infringement may occur if:

• the reason for termination has not been given,

• there were no trade union consultations,

• the time limit of 1 month for termination of the contract without notice through the fault of the employee has been exceeded,

• the written form has not been observed;

• there were no grounds for immediate termination of the contract.

In the event of unlawful termination of a contract of employment without notice, the employee may apply to the court:

• for reinstatement to work on previous conditions,

• for compensation.

In the case of fixed-term contracts of employment, the employee is entitled to compensation only if:

• the period for which the contract was supposed to apply has expired; or

• reinstatement to work is not advisable because of the short period of time left until the expiry of that period.

An employee who has taken up employment as a result of reinstatement is entitled to remuneration for the period during which they remained without employment, but no more than 3 months and no less than 1 month.

The remuneration is payable for the entire period of remaining without employment in the case of:

• employees during the 4-year period before the retirement age,

• pregnant employees,

• employees on maternity, parental and paternity leave,

• when the termination of the contract of employment is restricted by a special provision (e.g. for a trade union activist, social labour inspector).

The compensation is financial. The compensation is payable in the amount of remuneration for a period of between 2 weeks and 3 months. Its amount is the amount of remuneration for the notice period.

In the event of termination of a fixed-term contract of employment, compensation is payable in the amount of remuneration for the intended term of the contract, but no more than for the notice period.

In the event of termination of the contract of employment with immediate effect by an employee on account of a serious breach of the basic obligations by the employer, the employee is only entitled to compensation. Compensation is payable in the amount of remuneration for the notice period. In the case of fixed-term contracts – in the amount of remuneration for the term for which the contract was supposed to apply but no more than for the notice period.

However, if the employee terminates the contract in an unjustified manner, the employer is entitled to compensation in the amount of remuneration for the notice period, and in the case of fixed-term contracts, for the term for which the contract was supposed to apply, but no more than for the notice period.

Termination with advance notification

This method of termination of employment is used:

• in the event of transfer of the workplace or its part to another employer. An employee may terminate an employment contract with 7 days' advance notification if he has been notified of the transfer of the workplace to another employer. Such a declaration of intent may be submitted within 2 months from the notification of the transfer of the workplace,

• in the case of an employee reinstated to work, who took up employment with another employer. Then the employee may terminate the existing employment contract with another employer with 3 days' advance notification.

Termination of a contract of employment for the reasons unrelated to the employee

This particular method of terminating the contract of employment is governed by the act on specific rules for the termination of employment relations with employees for the reasons unrelated to the employees.

It applies where the grounds for termination do not relate to the employee, including where they are independent of the employer. They may include bankruptcy or liquidation of the employer, economic, organisational or employment reduction reasons.

This act applies to employers with at least 20 employees. If fewer than 20 employees are employed, the employer may dismiss employees on general terms.

This act governs both collective and individual redundancies.

Collective redundancy is redundancy which covers, within a period of 30 days:

• 10 employees, where the employer employs fewer than 100 employees,

• 10% of employees, where the employer has at least 100 employees, but fewer than 300,

• 30 employees, where the employer has at least 300 employees.

Individual redundancy is redundancy which is not collective redundancy (i.e. it does not cover enough employees to count as collective redundancy).

In principle, collective redundancies include the termination of contracts of employment. However, they also include agreements of the parties if at least 5 employees are covered by the redundancy in such manner.

The act contains numerous restrictions on collective redundancies. For example, pre-retirement age employees, pregnant employees, employees on maternity leave may only be subject to termination of terms and conditions of work and remuneration while they retain the right to compensatory allowance.

If the collective redundancies are a consequence of liquidation or bankruptcy, special protection against dismissal is cancelled.

An employee who is covered by collective and individual redundancy is entitled to a severance payment. The amount of that severance payment depends on the length of service of the employer concerned and amounts to:

• one-month remuneration if the employee has been employed by the employer for less than 2 years;

• two-month remuneration if the employee has been employed by the employer for between 2 and 8 years;

• three-month remuneration if the employee has been employed by the employer for more than 8 years.

The amount of the severance payment may not exceed 15 times the minimum wage applicable on the date on which the employment relationship is terminated.

 

Expiration of the employment relationship

The employment relationship will automatically expire by law in connection with an incident that is strictly defined in legal provisions.

Incidents causing expiration of an employment relationship include, inter alia:

• death of the employee,

• death of the employer,

• the end of the 3-month absence of the employee kept in custody.

There are modifications to the expiration of the employment relationship where natural persons run a business on their own behalf and employ employees (i.e. entrepreneurs who are employers).

 

NAME OF THE ENTITY RESPONSIBLE FOR THE CONTENT OF THE INFORMATION

Ministry of Economic Development, Labour and Technology

Department of Labour Low

email: sekretariat.dpr@mrips.gov.pl