New sanctions in the Polish Labor Code. Stricter penalties for infringement of the right to remuneration

The rules of remuneration for employees i.e., according to the definition in the Polish Labor Code, people employed under a contract of employment, appointment, election, assignment or co-operative contract of employment have been clearly provided for in the regulations.   

The employee’s right to remuneration for their performed work arises from the very essence of the concept of employment relationship. The right to remuneration is inalienable and cannot be transferred to other people.   

The general duty of the employer is to pay the full remuneration on time. The remuneration is paid in arrears, immediately after the determination of its full amount, not later, however, than within the first 10 days of the next calendar month.  

What about situations when the employer infringes the rules provided for in the regulations?  

So far, the sanctions stipulated in the Polish Labor Code have brought little benefit to the employees. The employee has been only able to report the breach to the Polish National Labor Inspectorate which could then issue an order for the immediate payment of the remuneration and impose a fine in the amount of PLN 1,000 to 30,000 on the employer.  

Thus, although the employer could be penalized for breaching regulations concerning employee remunerations, it has had no bigger impact on the employee – they completed their job, did not receive the remuneration on time or the payment was delayed and they did not receive any compensation for it.  

The newest draft of the act on minimum remuneration for work, prepared and presented by the Ministry of Family, Labor and Social Policy, is to introduce Directive of the European Parliament and the Council (EU) 2022/2041 of 19 October 2022 on adequate minimum wages in the European Union into the Polish legal system. The draft also includes regulations adding new sanctions in the Polish Labor Code and the Polish Criminal Code with regard to the employee right to remuneration. 

The revision will add to the Polish Criminal Code new types of crimes and new types of offences connected with infringement of the employee right to remunerations and, what is even more important for the employees, it provides for charging interest on delayed payments of the payable remunerations. Moreover, the draft provides for increased sanctions for infringements against employee rights.   

The government scheduled the approval of the draft for the 3rd/4th quarter of 2024.  

Author: Maja Sępioł, DPT Assistant  at the MDDP Outsourcing Office in Katowice