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Fixed-term employment contract in Poland – legal limitations

Fixed-term employment contract is a tool commonly used to establish an employment relationship. However, where does the freedom and flexibility of this type of agreement end and its limitations begin?

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Legal status of a Limited Liability Company (LLC) in Poland

The Polish Limited Liability Company (in Polish: spółka z ograniczoną odpowiedzialnością; sp. z o.o.) is the most common form of establishing a company in Poland. The LLC is frequently chosen by small entrepreneurs as well as by large international groups, both Polish and foreigners.

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Declaration of insolvency of a limited liability company – does it really protect a member of the management board?

People generally believe that submitting a bankruptcy petition of a limited liability company and declaring it insolvent by the court enables the management board to rest assured. This belief originates from focusing only on the content of art. 299 of Polish Commercial Companies Code (hereinafter: CCC), without the correct analysis of the bankruptcy law provisions. However, in reality, even after declaring the company bankrupt, the assets of members of the management board might not be protected. Why does it happen?

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Risk of conversion of a B2B contract into an Employment Agreement

Employers take varied measures in order to mitigate costs of employment and eliminate a part of their responsibilities. Some of them, instead of classic employment contract, conclude so-called B2B agreements with job applicants. Others decide to change the method of “employment” after it commences – they decide to change from employment contract to B2B contract. However, concluding B2B contracts can result in some particular kind of risk.

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Do foreigners have the right to set up and carry out a business in Poland?

Foreigners who are temporary or permanent residents of Poland often reach out to us with questions concerning freedom of setting out a business in Poland (in a form of a company, a partnership or a sole tradership). Our most frequent response is typical for a lawyer – that the answer to this question depends on specific situation.
Citizenship of a foreigner is the essential point in determining whether and in which form a they can carry out a business in Poland.

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Non-competition clause in civil law agreements

The non-competition clause is widely applied to employment agreements (both during their term and, above all, after termination of employment). The non-competition clause after the termination of the employment agreement is strictly linked with the obligation of paying the employee a compensation for refraining from competitive activity in the amount of at least 25% of his salary. This minimum level of employee protection is guaranteed by the Labour Code.

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