Terminating Employment in Poland: Legal Framework, Procedures, and Best Practices

Reading time: 12 minutes

Introduction to Polish Employment Termination

Navigating employment termination in Poland requires precision, legal awareness, and careful planning. Whether you’re an HR manager, business owner, or international company establishing operations in Poland, understanding the nuanced legal landscape isn’t just about compliance—it’s about managing risk and maintaining your company’s reputation.

The Polish Labor Code (Kodeks pracy) establishes a comprehensive framework that strongly favors employee protection. This isn’t surprising for a European Union member state, but Poland brings its own distinct requirements that can catch unprepared employers off guard.

Let’s be clear: There’s no such thing as “at-will” employment in Poland. Every termination must be justified and procedurally correct. The consequences of getting it wrong? Potential reinstatement orders, compensation claims, and even criminal liability in severe cases.

In this guide, we’ll transform complexity into clear, actionable information that helps you navigate terminations while balancing legal requirements with business objectives.

Polish Employment Law Framework

Poland’s employment law stems from multiple sources, creating a layered system that employers must navigate carefully.

Key Legal Sources

At the foundation lies the Polish Labor Code, enacted in 1974 but substantially amended to align with EU directives and modern labor practices. Additional regulations come from:

• The Polish Constitution (particularly Article 24 on labor protection)
• EU employment directives
• Collective bargaining agreements (where applicable)
• Individual employment contracts
• Workplace regulations (Regulamin pracy)

According to the Polish Central Statistical Office, approximately 16.5 million people participated in the Polish labor market in 2022, with around 13 million employed under contracts governed by the Labor Code.

As labor law attorney Marta Kowalska notes, “Poland’s employment regulations create a careful balance—they provide significant employee protection while still allowing employers flexibility through different contract types and legitimate business-justified terminations.”

Employment Contract Types and Their Impact on Termination

The type of employment contract fundamentally affects termination procedures:

1. Indefinite-term contracts (umowa na czas nieokreślony) – Offer the highest level of employee protection
2. Fixed-term contracts (umowa na czas określony) – Terminate automatically at the end date but can be ended earlier under specific conditions
3. Probationary contracts (umowa na okres próbny) – Limited to 3 months with more flexible termination options
4. Civil law contracts (umowy cywilnoprawne) – Not governed by the Labor Code but by the Civil Code, offering significantly fewer protections

Understanding which contract type applies is your first critical step in navigating the termination process correctly.

Types of Employment Termination

Polish law recognizes several distinct termination methods, each with its own procedural requirements and implications.

Termination with Notice Period

The standard approach allows employers to terminate with advance notice, with the notice period depending on employment duration:

• 2 weeks – For employment less than 6 months
• 1 month – For employment between 6 months and 3 years
• 3 months – For employment of 3 years or more

Critically, this type of termination still requires a justifiable reason for indefinite-term contracts. These reasons must be concrete, verifiable, and directly related to either:

1. Employee-related factors (performance, qualification, conduct)
2. Organizational factors (restructuring, economic necessity)

As labor court judge Tomasz Nowak emphasizes, “Vague or generic justifications rarely survive judicial scrutiny. Courts expect employers to demonstrate specific, documented reasons that stand up to objective analysis.”

Termination Without Notice

This immediate termination option is available only in exceptional circumstances:

1. Employee gross misconduct, including:
   • Serious violation of basic employee duties
   • Criminal offense making continued employment impossible
   • Loss of qualifications required by law
2. Extended absences, including:
   • Illness exceeding statutory limits (varies by employment duration)
   • Unjustified absence exceeding 3 days

The burden of proof lies entirely with the employer, and courts interpret these provisions strictly.

Mutual Agreement Termination

Often the cleanest solution, mutual agreement terminations allow both parties to negotiate exit terms, including timing and potential severance packages. This approach avoids notice periods and eliminates most grounds for wrongful termination claims.

While this seems ideal, approaching employees with mutual termination proposals requires careful handling to avoid claims of pressure or coercion.

Step-by-Step Termination Procedure

Successfully navigating a termination requires meticulous adherence to procedural requirements. Here’s your practical roadmap:

Documentation and Preparation

Before initiating termination, gather comprehensive documentation to support your decision:

1. Performance issues – Collect performance reviews, improvement plans, warnings
2. Misconduct – Document incidents, witness statements, previous disciplinary actions
3. Organizational changes – Prepare business plans, financial data, restructuring documentation
4. Contract review – Examine special clauses, protection periods, notice requirements

Pro Tip: Create a termination checklist specific to your organization that ensures all legal requirements are met for each specific termination scenario.

Consultation Requirements

For companies with trade unions, Polish law mandates consultation before termination. Specifically:

• The union must be informed in writing about the intent to terminate
• The union has 5 days to provide an opinion (non-binding but procedurally essential)
• Failure to consult can invalidate the termination regardless of its substantive merit

Even without unions, works councils must be consulted for collective redundancies affecting at least 10% of employees.

Termination Letter Requirements

The termination letter must meet strict formal requirements:

• Written form (electronic notification is insufficient)
• Clear indication of termination type (with or without notice)
• Specific, concrete reasons for termination (for indefinite contracts)
• Notice period length and end date
• Information about the employee’s right to appeal to the labor court (within 21 days)
• Trade union consultation information (if applicable)

A case from my practice: An international technology company attempted to terminate a senior manager using a standard termination template from their global HR system. The letter failed to specify concrete reasons as required by Polish law. Despite clear performance issues, the court ordered reinstatement and 3 months’ compensation because the termination letter didn’t meet formal requirements. — Anna Wiśniewska, Employment Attorney

Severance Pay Requirements

Severance pay in Poland follows a different framework than many other countries, with statutory requirements in specific situations rather than for all terminations.

Statutory Severance Entitlements

By law, severance is mandatory in the following circumstances:

Circumstance	Employment Length	Severance Amount	Applicable Law	Tax Treatment
Group redundancy	Less than 2 years	1 month’s salary	Act on Specific Rules for Terminating Employment for Reasons Not Related to Employees	Tax-exempt up to PLN 38,000
Group redundancy	2-8 years	2 months’ salary	Same as above	Tax-exempt up to PLN 38,000
Group redundancy	Over 8 years	3 months’ salary	Same as above	Tax-exempt up to PLN 38,000
Individual termination (employer reasons)	Any duration	No statutory requirement	Labor Code	Taxable as regular income
Mutual agreement	Any duration	Negotiable	Civil Code	Varies based on structure

According to Poland’s Ministry of Family, Labor and Social Policy, only about 18% of all terminations in Poland result in statutory severance payments, primarily due to the limited scenarios where they’re required.

Contractual and Negotiated Severance

While statutory requirements are limited, additional severance may come from:

• Individual employment contracts – Particularly for executive positions
• Collective bargaining agreements – Common in manufacturing, energy, and public sectors
• Company policies – Internal regulations may establish standardized packages
• Negotiated settlements – Often used to avoid litigation and reputational damage

When dismissing high-level employees, companies typically offer 3-6 months’ salary as severance even when not legally required, according to the Polish HR Association’s 2022 Termination Practices Survey.

Special Protection Categories

Polish law establishes extraordinary protection for certain employee categories, making termination significantly more challenging or impossible in some cases.

Absolutely Protected Categories

Some employees enjoy near-absolute protection, meaning termination is prohibited except in rare circumstances like company liquidation:

• Pregnant employees and those on maternity leave
• Employees on parental leave
• Trade union leadership (specific named positions)
• Employees within 4 years of retirement age (in specific situations)

Violating these protections not only invalidates the termination but can result in criminal charges in certain cases (particularly for pregnant employees).

Partially Protected Categories

Other employees enjoy heightened protection requiring additional justification or procedures:

• Employees on sick leave (termination possible but notice period extends)
• Employees on ordinary leave (vacation, personal days)
• Employee representatives in work councils
• Employees who filed discrimination complaints (anti-retaliation protection)
• Employees within 12 months of return from extended maternity/parental leave

Navigating these protections requires careful planning and often legal consultation to avoid unintended violations.

Common Employer Mistakes and Legal Risks

Even well-intentioned employers frequently stumble when handling terminations in Poland. Understanding these pitfalls can help you avoid costly mistakes.

Procedural Errors

The most common mistakes relate to procedural requirements:

1. Insufficient documentation – Failing to document performance issues or misconduct
2. Improper consultation – Ignoring or incorrectly executing union consultation requirements
3. Defective termination letters – Missing required elements or using vague justifications
4. Timing violations – Terminating during protected periods or not respecting notice periods
5. Failure to consider alternatives – Not exploring position changes or redeployment options

According to Polish labor court statistics, approximately 60% of successful wrongful termination claims succeed based on procedural defects rather than substantive issues with the termination reason itself.

Financial and Reputational Consequences

When terminations go wrong, employers face significant consequences:

• Reinstatement orders – Courts can mandate rehiring with back pay
• Compensation awards – Typically 1-3 months’ salary, but potentially higher
• Legal costs – Both employer’s defense and potentially plaintiff’s costs
• Management time – Litigation often consumes significant executive attention
• Reputational damage – Particularly in smaller industries or communities

Employment law specialist Piotr Adamczyk notes, “The true cost of improper termination extends far beyond any court judgment. The operational disruption and damage to employer brand often exceed the direct financial penalties.”

Real-World Termination Case Studies

Examining real cases helps illustrate how Polish termination law works in practice.

Case Study 1: Performance-Based Termination

Scenario: A Warsaw-based financial services company terminated a senior analyst after six months of documented performance issues, including missed deadlines and quality problems.

Process: The company provided:

• Formal performance improvement plan with clear metrics
• Regular review meetings with written feedback
• Two formal warnings documented and acknowledged by the employee
• Detailed termination letter citing specific performance failures

Outcome: Although the employee filed a lawsuit, the court upheld the termination based on the comprehensive documentation and clear connection between the stated reasons and business needs.

Key Lesson: Thorough, contemporaneous documentation creates a defensible foundation for performance-based terminations.

Case Study 2: Restructuring Termination Misstep

Scenario: A manufacturing company eliminated a department of 8 employees, including a worker who had just returned from extended medical leave.

Process: The company:

• Documented business necessity with financial statements
• Applied objective selection criteria to determine which positions to eliminate
• Provided proper notice and severance packages
• Failed to identify the special post-medical-leave protection status of one employee

Outcome: While the court accepted the legitimate business reasons for restructuring, it ruled the company should have found alternative positions for the protected employee. The court ordered reinstatement plus 2 months’ compensation.

Key Lesson: Always verify protection status before finalizing termination decisions, even in otherwise legitimate restructuring situations.

Best Practices for Employers

To navigate Polish termination requirements successfully, consider these strategic approaches:

Proactive Planning and Documentation

Effective termination management begins long before any specific decision:

1. Establish clear performance expectations – Document in job descriptions and regular reviews
2. Implement progressive discipline systems – Create a clear path of escalating consequences
3. Maintain detailed personnel files – Document all performance discussions, warnings, and improvement efforts
4. Create termination checklists – Develop process guides specific to different termination scenarios
5. Train managers – Ensure frontline leadership understands documentation requirements

As HR Director Katarzyna Mazur explains, “The best termination defense is built months or years before any decision is made through consistent, fair documentation practices.”

Alternative Approaches to Consider

Sometimes, traditional termination may not be the optimal solution:

• Mutual agreement negotiations – Often preferable for both parties despite potentially higher initial cost
• Internal transfers – Redeploying employees to areas better matching their skills
• Voluntary separation programs – Offering incentives for voluntary departures during restructuring
• Gradual retirement plans – Transitioning older workers while transferring knowledge
• Outplacement services – Providing career transition support to ease separation

A 2022 survey by the Polish HR Association found that companies using mutual agreement terminations experienced 82% fewer legal challenges compared to standard notice-based terminations.

Conclusion

Navigating employment terminations in Poland requires a careful balance of legal compliance, thorough documentation, and strategic planning. The Polish system prioritizes employee protection while still providing employers legitimate pathways to end employment relationships when necessary.

The most successful approach combines:

• Thorough understanding of the legal framework
• Meticulous attention to procedural requirements
• Comprehensive documentation practices
• Awareness of special protection categories
• Strategic consideration of alternative solutions

Rather than viewing Polish termination requirements as obstacles, forward-thinking employers recognize them as frameworks that promote fairness, transparency, and ultimately more productive employment relationships. By investing in proper processes and documentation, companies can make necessary termination decisions while minimizing legal and reputational risks.

Remember that each termination situation has unique elements, and the general guidance provided here should be supplemented with specific legal advice for your particular circumstances.

Frequently Asked Questions

Can an employer terminate an employee during sick leave in Poland?

While technically possible, terminating an employee during sick leave carries significant restrictions. The notice period cannot expire during the leave and is automatically extended until the employee returns to work. For longer-term illnesses, termination becomes possible after the employee exhausts the statutory sick leave period (which varies from 33 to 182 days depending on employment duration and condition). However, terminating employees shortly after they return from sick leave may still raise discrimination concerns, especially if the illness relates to a disability or other protected status.

What are the specific requirements for group redundancies in Poland?

Group redundancies (collective dismissals) in Poland are governed by the Act on Specific Rules for Terminating Employment for Reasons Not Related to Employees. This process applies when terminating at least 10% of employees (or 10+ employees for smaller workforces) within 30 days. Employers must notify and consult with trade unions or employee representatives, provide detailed justification for the redundancies, establish selection criteria, notify the labor office, and observe specific timing requirements. Additionally, employers must provide statutory severance payments based on employment duration and consider redeployment options. Failure to follow these special procedures can invalidate all terminations, even when business necessity is legitimate.

How can foreign companies adapt their global termination practices to comply with Polish requirements?

Foreign companies operating in Poland should develop country-specific termination procedures rather than applying global templates. Key adaptations include: creating Poland-specific termination letter templates that include all required elements; establishing local documentation standards that meet Polish court expectations; training managers on Polish-specific performance documentation requirements; implementing pre-termination legal review processes for all dismissals; and developing relationships with local employment law specialists. Many multinational companies find success by creating a hybrid approach that maintains their corporate cultural values while incorporating necessary Polish legal requirements. This often means longer notice periods, more extensive documentation, and greater emphasis on negotiated solutions compared to other jurisdictions.