Tax Alert: Bill on conditions of permissibility of employing foreigners in territory of Republic of Poland passed by government
Foreigners will still be able to work under a contract of mandate.
Foreigners will still be able to work under a contract of mandate.
On 18 December 2024, the Council of Ministers passed the bill on the conditions of permissibility of employing foreigners in the territory of the Republic of Poland.
The Act will comprehensively regulate matters related to the employment of foreigners in Poland. The new regulations aim to reduce the cases of fraudulent work permits used to enter the Schengen area, thereby enhancing security in the labor market.
According to the Ministry of Family, Labor and Social Policy, the Act also seeks to enhance the integration of foreigners working in Poland. Stable and secure employment conditions will enable newcomers to integrate into Poland's socio-economic system. Thus, they will help increase tax and social security revenues.
Importantly, the bill includes provisions on integration programs for foreigners, such as assistance with learning Polish, and gives Labor Offices the competence to establish specialized centers to support foreign workers in the labor market.
The key new regulations introduced by the bill include:
- Full electronic processing of work permits and declarations to reduce case processing times.
- Clarification and expansion of the criteria for refusing work permits for foreigners. Once the Act comes into effect, a district governor [wojewoda] can deny a work permit to an employer who, for instance, does not engage in activities justifying engagement of a particular foreigner during a specified period or their primary goal is to facilitate the entry of foreigners into Poland.
- Stricter penalties for the illegal employment of foreigners, with fines ranging from PLN 3,000 to PLN 50,000 for each instance of such employment.
- Measures aimed at the effective integration of foreigners in Poland.
Shortly before the Council of Ministers adopted the bill, several significant amendments thereto were made. The bill no longer mandates that foreigners be employed exclusively under employment contracts. Additionally, the expanded inspection powers for the National Labor Inspectorate and the Border Guard, introduced through the earlier versions of the bill, have been removed.
The bill (in Polish) can be accessed at https://legislacja.rcl.gov.pl/projekt/12385455/
The new regulations are expected to enter into force on the first day of the month following the 14 days from the date of publication.
Our KPMG Team remains at your disposal for any further information you might require.
