Rojgar Job News

In a previous blog [here] I mentioned to you that the social partners – bar one – had come to an agreement on employment conditions for 2019 and 2020. This agreement was then to be further implemented by social partners at an industry level. On 2 July the social partners of the country’s largest joint committee for white-collar employees, JC 200, the committee for employers who do not belong to any other committee, reached an agreement. The most important element of the agreement is the allocation of the 1.1% salary increase that is allowed under the so-called wage norm. This national wage norm limits the percentage by which wages may increase on average over the course of the next two years, excluding indexation and automatic wage-scale increases. Salary increases which exceed the norm are – mostly in theory- punishable by law. JC 200 has translated the 1.1% salary increase differently depending on whether the relevant company also employs blue-collar workers wh...

This Autumn brings quite a few changes for Polish employers. Not only do new pension plans called PPK ( Pracownicze Plany Kapitałowe ) became a reality for the biggest Polish employers in the fourth quarter of 2019, but the Labour Code and Code of Civil Procedure see changes too. Some of them result in a need to change workplace policies and procedures, while others increase operational costs. Employee Capital Plans (PPK) Employee Capital Plans were launched this year to “allow” (require, actually) employees to systematically contribute to a pensions savings scheme. PPK apply from July 1 to employers having at least 250 employees as at December 31, 2018. From January 1 next year they will also cover employers with at least 50 employees as at June 30, 2019 and as of July 1 2020 to those with at least 20 employees as at the end of 2019. The remaining employers will be covered by the PPK regulations from January 1, 2021. The system provides for the automatic enrollment for...

As 2019 has come to an end, it is time for employers to get ready for 2020. Below we present a short summary of changes in Polish employment law, covering such areas as salaries, taxes, benefits and employee litigation. Minimum National Salary As of 1 January 2020, the minimum national salary and hourly rate for contractors has increased. The national minimum salary has increased by over 15% from PLN 2,250 to PLN 2,600 (approx. $675 or £523). The minimum rate for contractors has increased from PLN 14.70 to PLN 17 per hour of contracted work. Seniority Allowance Seniority allowance is a payment to the employee in recognition of length of service with a given employer. As of 1 January 2020, the seniority allowance is no longer taken into account when checking if the minimum national salary threshold is met. Social Benefits Fund In 2020 the amount paid into the Social Benefits Fund (ZFŚS) per employee will be calculated based on the average salary in 2018. In mid-2019 the c...

The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, enacted and sent to the President for his signature on March 27, 2020, is bipartisan legislation providing more than US$2 trillion in relief for both companies and families affected by the coronavirus disease 2019 (COVID-19) pandemic. It includes a number of provisions designed to help employers and employees contend with a scaled-back workforce and other economic fallout. In this update, we take a close look at some of the provisions that relate to retirement plans and the payment of employment taxes. Additional taxation-related provisions are covered in a separate client alert. Section 2202. Special Rules for Use of Retirement Funds These new rules provide individuals affected by COVID-19 access to retirement savings that under current law would not be accessible or would be subject to penalty if withdrawn. Tax-Favored Withdrawals From Retirement Plans This provision waives the 10% early withdrawal tax penalty th...