Why employment contract (umowa o pracę) may be bad decision for foreign workers in Poland
Employment contract (umowa o pracę) is considered the most secure form of employment in Poland. It provides for vacation pay, sick leave, pension and insurance contributions. However, for workers seeking to maximize their income, employment contract (umowa o pracę) has a number of limitations that make it less attractive than other forms of employment, such as contract of mandate (umowa zlecenia).
The main reasons why employment contract might be not good form of contract for you
1. Limitation of working hours
Under the terms of employment contract, the maximum number of hours of work is 168 hours per month (with a standard schedule).
- Employees often want to work more hours to earn more money.
- Even if the employer provides overtime, the number of overtime hours is strictly limited by law and cannot exceed 32 hours per month.
- Thus, an employee, even working all possible overtime hours, will not be able to achieve a significant increase in income.
2. Overtime: limitations and difficulties
Overtime is paid at a higher rate (50% or 100% depending on the conditions). However:
- It is more profitable for employers to avoid overtime due to higher costs.
- There is a risk of exceeding the legal limits, which can lead to fines for the employer, so it is more profitable for them not to provide them at all.
- Employees often face a lack of opportunity to receive these hours.
3. Payment for work on weekends and holidays
Although by law work on Sundays or holidays should be paid at +100% of the basic pay for the day, the employer is obliged to give a day off on a weekday in lieu of work on Sunday or a holiday, which he is likely to do.
- In fact, the employee receives only a monthly salary (rate) and an additional day off on a weekday for working on a Sunday or a holiday, which is not paid additionally.
- This is a significant disadvantage for migrant workers who are interested in money rather than additional rest.
4. Working on Saturday: peculiarities of payment
If Saturday is one of the 5 working days of the week, its payment is no different from weekdays.
- If Saturday is the sixth working day, the employer may provide a day off instead of 100% pay.
- All hours exceeding 8 hours of work on Saturday are considered overtime and must be paid at +50%. However, the employer will most likely try to organize the work in such a way as to prevent overtime on Saturday and, accordingly, overpayment for overtime.
- Example: you work for umowa o pracę for 8 hours on Saturday, and this is your 6th working day of the week. Most likely, the employer will give you an extra day off instead of paying you for working on Saturday. For example, on Tuesday or Thursday.
5. The only significant advantage is paid vacation
Paid vacation and full health insurance are important benefits of employment contract. However:
- Health insurance is also available under contract of mandate,
- For workers who do not plan to stay in Poland for a long time, the advantage of paid vacation becomes irrelevant.
Who is more suitable for the work permit?
- Highly skilled workers
- For professions where the salary depends on the result rather than the number of hours worked.
- Those who want to assimilate in Poland
- Employees who plan to stay in the country for a long time or wish to settle here permanently, spend time with their families, like to travel, have additional hobbies besides work and need time to realize them (hobbies, blogging, online work, etc.) or try to maintain a work-life balance.
- Employees with a priority on social guarantees
- People who value paid vacations, sick leave, and pension benefits.
Conclusions
For low-skilled workers who work in Poland temporarily and are focused on maximizing their earnings in a short period of time, who want to exchange time for money (i.e. the more hours you work, the more you earn), employment contract has significant disadvantages:
- restrictions on working hours,
- difficulties with obtaining overtime,
- insignificant legal, often purely formal advantages in comparison with contract of mandate.
Expected changes in legislation in 2025, which will oblige employers to use employment contract as the main type of contract, may make Poland less attractive to foreign workers. The change in Polish law policy and the law that in 2025 should oblige employers to employ everyone only under the umowa o pracę type of contract may make it unprofitable for foreigners to come to work in Poland due to low salaries, and many employers will find it unprofitable to hire new employees.
